Property Market in Marbella 2007

Current market conditions

Marbella Property market review for 2007 Purveyors of fine property’s in the Marbella and Puerto banus areas Marbella dream estates sl Puerto banus Marbella www.marbelladreamestates.com Well folks here we come to another year ending 2007 of a topsy turvy time in the real estate industry in the Marbella and surrounding areas.

Whilst property values may have taken yet another battering for those keen to sell in a hurry!!!, or for those who have over stretched there financial investments in a unstable market, and have no choice,,, not every vendor/seller is willing to take the knock whether it be 10% or 20% off his asking price, the most ardent seasoned investor/owner will sit back and wait for the property market to stabilise, lets be honest the boom could not continue every thing peaks and falls, interest rates along with it, but be rest assured that Marbella is still only 2.

Hours from most European airports and the sun continues to shine according to Spanish statistics for at least 10 mths of the year and a average daily temperature of 20c.through out the year, that will never change, what more could you ask for!!! , whilst investors, who by rule of thumb like a 5 year turn around on there investments, and generally buy off plan, have left our shores for the time being, be assured they will return, as the old adage goes you sell cheap you buy cheap, investors are a small percentage of the buyers who come to our Spanish shores, Northern European buyers predominantly come to buy a holiday home or a place of retirement irrespective of the market forces .or trends, We have witnessed a sombre years trading, with most sales being followed through and hitting the notary for completion after a 5% to 10% reduction off the asking price, having said that I have never sold a property for the asking price in my 7 years of real estate...... on the Costa del sol.

We were however fortunate to succeeded in selling a quaint little villa in Mijas to a very well known uk television celebrity, who shall remain nameless due to client confidentiality, that being a high point in the year we spent many hours on the road with endless clients mostly bargain hunters, looking to buy up to 20 % off the asking price? But to no avail, this is not Morocco its Marbella, and the successful business men and woman who came to Spain after making there money are not likely to be giving there hard earned luxury homes away, unless there’s another bargain around the corner of course, highly unlikely.

It’s not a lottery. The currant climate in the Spanish property market today is no different to any other European country, rising euro interest rates and the UK rates, have all been factors in the correction of property values, America lends to much money? Catches a cold, and Europe sneezes, this has not been helped by unjustified, exaggerated, media coverage in the UK and European daily tabloids, Costa del this? Costa del that?

Endless reams of tabloid trivia, however I am a firm believer there’s no smoke with out fire, but to under mind the whole Spanish property sector as being in rapid decline is absolute rubbish, in reality this is not happening,,(fact) the Spanish property market has been bouncing along and has been for the last 2.1/2 years not buoyant, but keeping prices into check, my forecast is that within the next twelve to 18mths months we shall witness a small rise in confidence along with prices ,not like the bubble we experience before we do not want that, but as a good time to buy, as we are all fully aware UK interest rates are now on the decline, this is a good sign, to our over heated UK economy, and the same in Spain we needed the correction.

Gone are the days, when anybody with a European passport could walk into “some” Spanish banks and get a mortgage with little or no deposit and paperwork at a minimum, and of course not forgetting euro interest rates of 3.5% over 30 years irrespective of there age or income, the lessons have been learnt and the price to the banks has been very high, loan to property value the banks used to say, when giving a mortgage, now a different story from the banks loan to escritura, (title deeds) and the correction rightly so, these bogus deposit on mortgages along, with inflated pie in the sky bank valuations, an inflated property values to all and sundry, has been a relevant factor in the property price corrections, the banks were on a rising tide, but a tide always ebbs pardon the pun!!, now you might need a blood test to get a mortgage in Spain, no im joking!! Proof of your taxable earnings for the last 3 years, or company accounts from a chartered surveyor will suffice, a good bank valuation, property in a good location, first occupation license is a must for safety of the banks security, without one they will not lend, a cent, remember a lot of property’s were built and sold illegally and without planning permission in the last 7 years, this has also seen a correction along with all the perpetrators involved at a price of course,.

None of this has helped the Spanish property markets publicity campaign in the uk and Ireland including northern Europe where most of our buyers hail from, So the moral of the story is have a good lawyer, keep you eyes wide shut, log on our home page www.marbelladreamestates,com over 35,000 property’s online, and remember don’t loose a deal because you haven’t stolen it, there will be good reason why you haven’t,, make an offer which you consider is realistically what its worth to you, and of course shop around.!!.. surprise me and tell me we haven’t got what you want? What you are looking for and I will personally guarantee to find you 5 options with in 24 hrs,, Marbella and its property’ Market are going no where ,and the proof of the pudding is in the eating! look at Spain’s past tourism and history, the British and the Germans were flocking down here from the early1960s do you think that will ever change, I don’t think so! Marbella area is running out private dwelling land, due to density of buildings and construction over the last 10 years, undoubtedly the best area to invest Marbella is surrounded by its 5 golf courses in between valleys right on the beach and 40 minutes from the airport, purchasing a second or retirement home here is money in the bank id say, but then I have a conflict of interest ,,So judge for yourself, history repeats it self Quality is timeless!!

Only the service is old fashioned! Call the Dream team now on +34 952907718 for all your property requirements or sales@marbelladreamestates.com www.marbelladreamestates.com . Barry Lilly Managing director Marbella Dream estates Sl Centro commercial Plaza Marbella Spain 29660

COMMENTS:

Wolfgang Brand - 17 January 2008

With great interest I read your evaluation of the current market. Can you give an estimation of when the market should return to normality.

Thanks

Wolfgang Brand

Barry Lilly - 17 January 2008

Dear Wolfgang
Thankyou for taking the time to read my article, my answer would be i have not got a glass ball, and would not like to determine market trends.However the rule of
thumb is every 5 years we appear to get a correction.
However i do not forsee property values asending up to there past extremeties in the current correction. 2008 we are experiencing a slight up turn in enquiries and there are people around picking up some very good buys, as it is of there opinion the Spanish market has bottomed out.However i shall let you be the judge of that.

Best regards

Barry Lilly

Randal Karotkin - 16 February 2008

Dear Barry,

You definately tell it like it IS... And in my opinion your Market Report for 2007 is a MUST READ for anyone thinking of buying or selling on the Costa del Sol.

I believe that 2008 will be defined as "The year of the Deal Makers"

Keep on deal making :-)
Randal Karotkin

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