Peter: That has all changed. There remains cheap property of course, but it is often cheap because it offers little value; perhaps because it is poorly located or poorly constructed. That is not the type of property that I would recommend. Were you to buy such a property, you could find it difficult to sell.
However, if you are looking for a property that offers you a fabulous lifestyle and is also an investment that is saleable, the market has reached its floor—prices can only increase.
Ricky: What does that mean for people looking to buy in the Marbella property market?
Peter: Confidence has returned to the market. Buyers now know that when they buy the right property, at the right price, they have made a good investment. Sellers can put their property on the market, as long as it is priced correctly, and feel confident the property will be sold at, or close to their asking price. Read more >
Ricky: Could you give some example of opportunities for investors.
Peter: Well, if we take the economical end of the market, you can currently purchase a 2 bedroom apartment in La Dama de Noche urbanisation for 239,000. This offers incredible value. The units are located in a gated urbanisation with beautifully manicured gardens and several lagoon style pools. You also have a nine-hole golf course adjacent, that is floodlit at nighttime if you want to play golf in the evening. The entire development is within walking distance of the world famous leisure port of Puerto Banus, the beaches, as well as the shopping areas of Nueva Andalucia. Apartments that are so affordable in such a desirable location are simply one the best entry level investments on the coast.
Furthermore, land is at a premium in Nueva Andalucia. This factor, combined with growing demand from people looking for the convenience of a location that is within walking distance of all amenities, is only going to put upwards pressure on prices. In addition, aside from the pleasure of using your home the rental returns, especially during the summer months, are excellent.
Ricky: And how about the higher end of the market?
Peter: The luxury end of the market is particularly popular at the moment. In fact, demand for traditional style Spanish villas has been complemented by a new and growing demand for contemporary style properties. These properties have large open plan kitchens and living areas as well as expanses of glass to let in the light.
Ricky: Does this new demand create new opportunities for investors?
Peter: Indeed it does. That five new projects have been started by developers demonstrates the resurgence in confidence that has occurred in the market. For example, the “World” development just off the Golden Mile is a magnificent project of high-end contemporary apartments to be constructed shortly. Prices start at 1,280,000 Euros upwards with top floor penthouses available for 3,450,000 Euros. So far, more than 30 units have been reserved.
Ricky: How about individual investors?
Peter: There are also opportunities for those who are willing to reform properties in prime locations, which have fallen into a level of disrepair. Only recently, we managed to locate a run-down villa in a prime location for a client for less than 1,000,000 Euros. He invested an additional 250,000 to renovate the property completely, turning it into a state of the art contemporary villa. The property is now back on the market for just under 2,000,000 Euros.
Ricky: What would your recommendations be for people looking to buy a property in Marbella?
Peter: I think the most important factor to consider is that, as long as you invest in a quality property in the right location, you will have made a sound decision. You will be able to enjoy the very best that Marbella has to offer, whilst at the same time benefitting from a secure investment that has the potential to grow over time.
Ricky: What are the risks?
Peter: The main risk is that you buy a property that is going to be difficult to resell. This could be because the property is situated in a location for which there is little demand, the construction is of poor quality or is not designed in a style that is in demand.
Ricky: How does the real estate agent fit into this?
Peter: Ultimately we understand that when someone buys a property, when the time comes to sell they want to know that the property can be sold, as quickly and effortlessly as possible.
Our job is to find that property for a client—that is Nordica’s strength.
With more than 25 years’ experience, we know the property market in Nueva Andalucia inside-out.
We know what sells and what does not sell!
We like to think that when we have sold a property to a buyer we have a client for life—when the times comes to sell the property, and realise a return on investment, the seller will trust the very same agent that pointed him in the right direction to buy the right property in the first place.
For more information or advice on real estate in the areas of Nueva Andalucia & Marbella, Peter Rosen can be contacted at Nordica Sales & Rentals on + 34 952 811 552.
