Buying Property In Marbella

It is mid June and the British summer has finally arrived after one of the driest months of May on record. We have rain and fog in the South whilst Scotland has severe weather warnings. No wonder so many Brits dream of moving to the Marbella area of Southern Spain. They enjoy an average of 300 days of sunshine per year on the Mediterranean coast. What bliss that would be for the fog bound Englishman.

The weather is probably the major reason why Brits are one of the largest buyers of Spanish property. However, the British are generally very cautious, especially when it comes to making a major purchase such as a holiday or retirement home in a foreign country. During 2010 and 2011 those interested in the Spanish property market have been hearing many stories in the press of doom and gloom much like the British summer. They have heard that property prices have crashed and there is little likelihood of things getting any better in the near future. Of course, a person should take what they read in the newspapers with a pinch of salt. Of course there has been a house price crash in both Spain and Britain but different areas are coming out of the recession in different ways for different reasons.

When a Brit drives from the Northern Spanish port of Santander to the Mediterranean coast at Marbella they see vastly different scenery and cities. Many people feel that they have travelled through several countries, not just one. The property market is just as diverse. The prices of property in the major cities such a Madrid are still falling and despite that, the market is still stagnant. Reports say that Barcelona seems to be falling but the rate has slowed markedly. The Southern Costas including the city of Marbella appear to have turned the corner but the recovery is still in its very early stages. The southern coast is where foreign buyers from Northern Europe such as the British, Germans and Russians tend to buy. Their countries are recovering from the worldwide recession and so buying in Spain has become a realistic possibility again. This probably explains why it is this area that will lead the recovery of Spanish property prices.

Property agents operating in the Marbella area are reporting mixed market activity. They say that there has been a marked increase in the number of enquiries from foreigners, but potential buyers are still very hesitant. This is typical of a market bumping along the bottom of the price curve. There is a lot of pent up interest prompted by undeniably cheap property, but worry that prices in Marbella might start to decline again.

Many agents believe that this uncertainty over prices has not been helped by the Spanish Banks. They have released many thousands of repossessed properties onto the market just when the recovery was starting. The banks had no choice. They are being forced to sell these repossessions by their regulator, The Bank of Spain. Whilst that is good for the property market in the medium term, the law of supply and demand says that increased supply leads to a fall in prices. Whilst the property market in Marbella has not seen prices forced down further by the flood of available properties, it has suffered increased levels of anxiety amongst potential buyers.

The frustration for the Marbella property agents is that they can see many bargain properties in the market but buyers are hesitant. The agents know that when prices do start to rise, there is likely to be something of a stampede into the market and prices will rocket. The frustration for the potential buyers is that they have seen a property that suits them, but are concerned that they may pay too much. The logjam will break soon so the wise British buyer should be taking positive action to secure a Marbella bargain whilst they are still available.