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Marbella Property investment will double in 2016

The process of normalization of the real estate market will begin to be felt more intensely than in 2016, therefore Marbella property investment will double its growth. This is the message BBVA Research and BBVA Real Estate wants to launch and the last report have been published on the residential sector, which summarizes what the prospects handling for next year are more home sales and new work.

Their forecasts, in fact, suggest that already in 2015 the residential sector growth will stop draining the economy and for the first time since the crisis erupted, start adding value to GDP. “We expect property investment to grow 3.4% in 2015, contributing 0.2 percentage points expected economic progress, and 7.1% in 2016,” says the report. Recall that this investment includes both holding developers and households. Collect thus all the flows in the country for housing.

And how is it possible that Marbella property investment growth will double in just one year? The key to all, according to the report, residential demand is: a measure that the buying pressure is going to increase, the stock will fall tract houses and new construction will go making way.

“The improvement is being progressive, with a growing number of markets in which sales improve, the oversupply will begin to be eliminated and conditions for the development of real estate. Estimates of residential demand fundamentals justify further increases in sales in the next year. Similarly, encouraged by the increase in demand and inventory reduction, construction activity will grow in the coming quarters trying to outrun the minimum levels that still installed, “said BBVA.

It may seem strange forecasting feature is that you can reactivate the new work even exist almost half a million empty houses. However, the study, recovery of construction activity is not incompatible with a high level of inventory.

“Construction activity does not necessarily require recovery has to react, given the long process of building a home (an average of two years), it is sufficient that there is no prospect of recovery as factors such as the characteristics of the oversupply own, the evolution of housing demand (whether domestic or foreign) and the economic growth forecast, “he insists. And all of these variables seem to justify itself, again, they begin to erect buildings.

Demand on Marbella Property Investments, will keep pushing prices up...

Demand, at least, will continue to rise thanks to improved labor market (since 2014 Spain is creating around half million jobs), the higher disposable income of households (is up 4% year on year in 2015 thanks to the fall in the tax burden), the maximum you are registering consumer confidence, to the formation of households (since 2007 have formed 1.9 million) and the good progress that is taking foreign demand (in 2014 home purchases by foreigners rose by 38% in 2015 and builds up another 12%). In addition, GDP growth next at rates close to 3% a year and the stock of unsold homes will be further reduced.

“In 2015, housing sales will exceed 400,000 units. The turnaround in demand began last year and has established throughout this exercise. This sales pace will accelerate in the fourth quarter and the trend will also continue in 2016. All these factors are supporting the positive development of demand, “the report said.

However, as it reflects the sector, improvements that are occurring are not homogeneous: those regions where GDP fell less during the crisis are the ones living a proven recovery.

“In markets like the Balearic Islands, Madrid, Marbella and Canary demand has already exceeded the adjustment process of these past years and is in a time of normalization, while in Extremadura, Castilla-La Mancha and Galicia are still in the adjustment phase” recalls BBVA.

Along with all these variables, which is also supporting the buying pressure is mortgage financing, in addition to boost demand is pulling the residential development. The latest figures from the Bank of Spain credit, at least, are already showing strong rebounds in lending to builders.

“Although promoters or financing productive activities related to the brick remains at least until mid-year has increased by 20.7% on-year to stand at 3,725 loans, of which 80% was for housing construction and the remaining 20%, other property. In the case of new loans to purchase a property on-year improvement of 37%, reaching 159,000 loans, of which 92% was to buy a home, “he explains BBVA.

However, the report recalls that 2015 will be the brick will contribute positively to the Spanish GDP, rather than detract from it. A trend that, if no last minute changes will be repeated with more force throughout 2016.

The high demand for Marbella luxury property in and the Costa del Sol keep pushing the prices higher and higher every month, so if you would like to buy your property in Marbella and the Costa del Sol before prices get too expensive, please do not hesitate to fill the form on Contact Us or give us a call on +34 952 811 010 Today!

Source: Idealista

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