Recovery in the Real Estate Market – Investing in Marbella
Content with optimism we have now started to hear words like “recovery”, “relaunch” or, from daring mouths, “economic boom” and to even “definitive consolidation of an economical high profile”.
Always intertwined with the tourism sector, the real estate business is undoubtedly the engine of our economy.
Nobody is indifferent about Marbella being today a significant gauge of overall economic status, for good and for bad, not in vain, in our city we regularly come together with the most powerful economic representatives thanks to a flow of channeled capital in the investments of visitors from around the world who choose Marbella and the Costa del Sol as the final destination of money derived mainly from northern Europe, Arab countries, former Soviet Union, lately China and since very recently we are witnessing the introduction of US funds as a clear evidence that the attraction of our city as an economic thermometer, without fear of being wrong, we can say that we were the first to welcome customers from across the former Iron Curtain and to subsequently detect the current crisis in Russia.
According to the details given by the Spanish Government, the upward trend continues. The first semester of 2015 has marked an increase of an 8% in the real estate activity with regards to the same period of the previous year, being good, resulting an increase of a 10% in the volume of transactions, most of them done on the Costa del Sol.
It has helped that banks have “opened the door” to finance at the expense of a reduced interest rate to historically unknown dimensions, forcing the capital movement given the void yield of deposits.. According to the INE (National Statistics Institute), the number of registered mortgages is increasing, being achieved during the first six months of this year up to a 20% more than the same period in 2014. Andalucia heads the list of the Regions where most mortgages have been signed so far this year, always faithful to a variable EURIBOR which is by far the most sought for mortgage loans for its stability and low relative risk, provided that the economic situation is capable of maintaining a moderation during long periods that currently are applied for the repayment of loans.
It is not convenient to launch from the rooftops after months of prosperity, but certainly keeping to statistical measurement parameters we find sensitive percentage increases in major variables that govern the commercial activity, and if it is also joined to that these increases are chained during months, we find justification to any positive affirmation and can begin to believe that the real estate market recovery is a fact.