property news
Notice in the above paragraph, I mention final home relocation, not retirement. Times have changed over the last decade, when people used to sell up in their own Countries and re-locate here to retire. Now we are seeing more and more young 35-45 year old entrepreneurs that have sold their businesses for millions or have chosen to run their current businesses from here.
Te reason for this is the Costa del Sol, translated (Sunshine Coast) offers one of the best climates in the world with 320 days of sunshine a year and an average annual temperature of 24.3°C. Tis along with the beautiful blue flag beaches, chic marinas and luxury lifestyle, makes it Europe’s favourite luxury destination to live. Tis late recovery is what makes the Costa del Sol so attractive to investors still, as it’s one of the few luxury areas with a fabulous infrastructure that still offers good growth potential. It wasn’t until 2014/15 that property prices started increasing in the Costa del Sol and since then prices have increased every year to date by an average of around 5 to 6% per annum, depending on exactly what reports you read. Tis means we still have around 15-20% increase leſt before returning to the pre crisis values. So taking an average of 18% growth remaining, and the steady 6% annual growth continuing, it would give us around 3 more years of steady growth. However, if the growth rate slows, the market is likely to continue growing at a lower but longer period. Vice versa, if we suddenly experienced a rush of buyers causing a massive 10% growth spike, it would lead to a shorter growth period. History shows us the warning signs to watch out for i.e., a massive growth spike for an extended period which would normally lead to a price Boom & Bust situation. Tis could easily have happened
over the last few years, except the Brexit situation naturally slowed the largest group of International Buyers (British) from flooding into the strong growing market. With Brexit almost finalised, we are expecting a lot of UK latecomers to return to the buyer’s market, but let’s hope it stays at a controllable 4-5% per annum growth rate, giving the market some longevity. Also, aſter balancing out reports we have concluded that the Costa Del Sol average prices are approx: 1 bed = €145,000, 2 bed = €238,000, 3 bed = €360,000, 4 bed = €678,000 and 5 bed = €1,060,000. Obviously, this is just showing the average price for each type of property, not a guide of what you should expect to pay. For example, a luxury two bed apartment in Marbella would sell for around €530,000 and a basic two bed apartment in Duquesa area could sell for as low as €160,000. It would seem the 4 bed price range is slightly distorted by cheaper inland fincas (country property), as a 4 bed villa on the coast would normally sell for between €580,000 up to 1.6 million in popular parts of Marbella such as Nueva Andalucia.
For more information on buying or selling property on the Costa del Sol, contact Peter or any of his team on Tel: (0034) 951 551 444 or
email:
info@OverseasDreams.com
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