House price and mortgage data indicates a great time to buy property in Marbella
IQ Marbella is an estate agent very much geared towards Andalucía’s luxury market and the high net worth investors who wish to dip into it. However, we also realise that even our most well-heeled clients are often anxious to purchase at the most financially advantageous time.
This is why we continually keep an eye on the latest data in relation to property across Marbella, the Costa del Sol and wider Spain – and the signs being made by such data are certainly positive at the present moment.
Property prices affordable, but on the up
Readers of the Olive Press are likely to have taken an interest in a recent report suggesting that properties in Andalucía are still among the most affordable in Spain, despite the current intensifying focus on the area by prospective investors. The article stated that while resale properties in the region sold at an average 0.8% higher price in April, the cost of property was still just €1,490 per square metre, which was around 11% lower than the Spanish national average of €1,680 per square metre.
Such a figure made Andalucía the eighth cheapest place to purchase property in Spain. However, as revealed by the House Price Index Tracker of Mark Stucklin’s Spanish Property Insight site, house prices remain very much on the up in many of the most sought-after areas of Spain. Indeed, Stucklin cited Marbella as just one of the various parts of the country presently seeing “strong demand”.
The SPI House Price Index Tracker monitors the six most-watched house price indices in Spain for easy review, and noted that the Land Registrars’ Association index showed an especially marked increase in the country’s house prices over the past year – by 7.74% in the first quarter of 2017. Annual rises were also recorded by the Government (Fomento) index (2.2% in the first quarter) and Spain’s biggest appraisal firm, Tinsa (2% in April), the latter based on the company’s own valuations.
Now could be a great time to take out a mortgage, too
However, the above wasn’t the only encouraging news that Spanish Property Insight has recently had to share with those contemplating whether to purchase high-value apartments or villas in Marbella. Another article on the site revealed, for instance, that the 12-month Euribor – the rate used to calculate most mortgage payments in the country – had fallen to -0.127 in May, compared to -0.013 a year earlier.
Such findings indicate that holders of an annually resetting Spanish mortgage will see an about €6 per month drop in their mortgage payments for a typical €120,000 loan with a 20-year term. Indeed, sustained falls in the Euribor in recent times may make it especially unsurprising that there was a 20.2% increase in new residential mortgage lending in March compared to 12 months earlier, according to the country’s National Statistics Institute (INE).
As a matter of fact, every month in 2017 except February has seen a pronounced increase in new mortgage lending, which is just one of the many indicators of a Spanish property market that is roaring back into form.
Find your dream Marbella property with IQ Marbella
Whatever your exact priorities may be in relation to Marbella property, IQ Marbella can be continually by your side to ensure that you invest in property that meets all of your practical requirements while also representing the strongest possible long-term investment.
Contact the IQ Marbella team today to receive the highest standard of assistance with your search for the perfect property in Marbella, the Golden Mile, Puerto Banus or any of the other sought-after nearby areas. We will help you to find a property that you will be truly delighted to call your own.