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Marbella Real Estate Market 2013
The recession that began in 2008 has changed the real estate market locally and globally as the number of buyers was greatly reduced, making the property market plunge into new depths after its peak in 2004/2005. However, in 2010 the real estate market gradually recovered from its downward slide, although still remained a shadow of its former self.
Now, 5 years later and sales prospects have become more positive in 2011 and 2012. Statistics show that buyer interest has grown rapidly and while the markets are still far from the peak reached in 2004/2005, the interest from buyers is the highest it has ever been in the last 5 years.
Despite the interest from new buyers, the amount of sales that close is still relatively low, due to the banks’ lending criteria. However, the real estate market today opens an opportunity for buyers who have access to credit or have cash available, as there is still an oversupply of distressed properties that allow potential buyers to purchase these properties at a much lower price than the prices from 5 years ago. These buyers purchase properties at a very low cost in a market that is in a steady decline and could result in a very profitable investment in the short to long term.
The managing director of Engel & Völkers Marbella, Smadar Kahana, reports that there has been a large increase in interest since 2011 and that many of these potential buyers turn into sales. Smadar confirms that the number of sales has increased tremendously in the last two years and Engel & Völkers shops in Marbella are experiencing some of the highest numbers since 2005, mainly because of the many homes where prices have dropped due to distressed sellers, opening the door for investors and buyers to purchase their dream home.
Markets have definitely changed since 2009 and activity experienced in the markets as well as the arrival of new buyers indicates that the housing market is recovering and progressing compared to what it was. Although the market may never enjoy the maximums it reached 7 years ago, it will certainly increase and reach new levels that have not been achieved for many years.Smadar Kahana | Managing Director | 22/Feb/2013
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