Investment Advice

Over recent years the Costa del Sol has enjoyed a huge boom in the property sector. Fuelled by a constant flow of international prospectors, the price of residential real estate has increased by an average rate of 10% a year for the past decade.

Like all things this has to come to an end. The last 18 months has seen a notable slow down in price rises and the area has received bad press following the unearthing of a number of illegally built developments, due to a corruption scandal in Marbella Town Hall. So it's all doom and gloom and we should pack our bags and go home. Or maybe not...

The current market conditions represent a fantastic opportunity for serious property investors. Firstly, at the present moment a number of distressed sales are becoming available. By this we mean speculators who have overstretched themselves and need to sell properties at the price they purchased them for 3 years ago, or in some cases LESS.
If you are in a position to move quickly, these opportunities represent fantastic value for money, in a market where we are still enjoying 5-7% increases each year.

The scandal of illegal building permits hitting the headlines has caused the intervention from central government in Madrid to control development in the area. As of now, we will witness a big slowdown in the building of new developments. When granted, licenses are likely to stipulate far smaller build percentages and existing ongoing projects will be subject to some change. In short, this will create a shortfall in quality available properties to meet the growing demand from second home owners and relocating families. This will in turn create an environment beneficial to vendors, a seller's market.

Yes there are many available properties here. Many are overpriced, poor quality and in the wrong location. We will source the best properties at the best price in the best locations. The main thing to consider is why the market here boomed in the first place? The Costa del Sol is a place that people will always want to live, or spend time in. The weather, the accessibility, and the lifestyle, dictate that there will always be a healthy flow of potential purchasers. The standards of both educational and medical facilities are some of the best in Europe, and hundreds of thousands of euros have been invested in the road, rail and air networks. The infrastructure here has been establishing itself for 30 years; people are not buying in an area where this all still has to come, as in many of the emerging markets.

At a time when many have been let down by pension funds, a deflated stock market and low rates of interest on saving accounts, property investors in bricks and mortar will always reap the benefits. This environment will always create a stable, sound and profitable investment, especially when we can help you source the best property at, in many cases, lower than its true market value.

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