Bullish tendency of prices in 2017 in Marbella
The Professional Association of Real Estate Experts (APEI) had forecast that the bullish tendency of prices and sales in the real estate sector in 2017 with a “small” increase in prices and the same volume in sales or “even more”, although it ruled out that there was a real estate bubble.
It predicts also an abundant demand but little supply in rentals in 2017, accompanied by an upturn in rental prices.
With the present interest rates, a property can be purchased with monthly repayments lower than a rental, in addition to the fact that the Spanish are now considering rentals as the future in property. Likewise, the prices are generally adjusted in all regions, in a progressive form to the rhythm of the economic recovery, and the new developments which are planned are carried out in accordance with the real needs.
This Association is certain that “there are reasons to be optimistic as the sector is recovering at a good pace, without signs of a new bubble”. They explain that in order for there to be a situation of a bubble prices need to be inflated and this is not the case, since at present the boom is taking place in the big capital cities. Also an important demand has been noted in the areas of the Litoral such as the Costa del Sol. As regards inflation, they recognize that this does not benefit any sector, unless there are any high spikes they do not believe that this effect will be of any importance.
The British may acquire less properties
In regards to the possible Brexit effect on the sector, they warn that the devaluation of the pound will mean less acquisition of properties by the British. However, the market will continue to move, as for them it will be advantageous to sell their properties in Spain because of the devaluation of their currency. However, it appears that they still continue to be good investors, especially in Southern Spain.
The importance of regularization of the sector
The experts are of the same opinion in that the regularization of the sector is important because it is one of the areas which generate more wealth. Likewise they advise that the demand for salespeople is multiplying in real estate agencies, which concerns the sector of the possibility of the increase in bad practise which happened during the ‘boom’. In some regions, such as Andalucía, the illegal carrying out of real estate mediation is reaching very high levels with a negative impact on the economy and the alteration of the market price of properties.