The end of house price falls in Marbella?
With sales figures up on 2011, the expected return of full-rate (10%) VAT on new builds, certain developers considering price hikes and others successfully selling off-plan for the first time in years – agent Spanish Hot Properties feels 2012 could be the last year for price falls in Marbella.
Nick Stuart, Director of Spanish Hot Properties, explains, “The only people reducing house prices on the Costa del Sol right now are the banks with their less-than-favourable repossession stock and developers who have properties that literally nobody wishes to buy. On the flipside, the developer of a luxury golf resort close to Marbella has pledged he will put prices up by 8% from 1 January 2013 having sold out all but 25 of his 267 unit project at 40% off peak prices. He may however reconsider if the Government goes through with its policy to raise new build VAT from 4% to 10% next year.”
VAT on new builds was temporary slashed from 8% to 4% by the previous Spanish Government in mid 2011. When Rajoy assumed office in December that same year, he extended the reduction through to the end of 2012. The policy may have worked, sales figures for new builds are up 3% annually, and many believe that the Prime Minister will not want to stall this recovery.
Nick continues, “I have spoken with banks, lawyers and other experts and few think Rajoy would be so stupid as to raise VAT up to the newly increased lower rate of 10%. An extra 6% would add 15,000 euros in costs for a property priced at 250,000 euros – hard to swallow at a time when the Spanish construction business is on its knees. The Government knows that it has to get rid of housing stock before the construction industry can pick up and I think that it will do anything to help facilitate the sale of new builds from developers or the banks. However Rajoy will no doubt wait until the end of December before he shows his hand so as not to derail the current ‘panic’ buying.”
In terms of the resale market, distressed vendors in Marbella are becoming fewer and further between. Some house prices are still negotiable, but many are not as the local market gains confidence. The weakening euro is also a positive influence. But once more it seems that the Brits are missing the point and missing out.
Nick finishes, “The Belgians, Dutch, Russians, Scandinavians, are hot on Marbella as they realise that prices are at their lowest and represent incredible value for money – even on a global scale. The two bedroom apartments selling for 250,000 euros today were priced at half a million at their peak, genuinely many properties are half price, and I don’t think the Brits quite see that. They used to dominate the market, making 60 to 70% of foreign purchases, but were responsible for just 19% in 2011. Meanwhile purchases by Russians soared nearly 28% from 2010 to 2011 and Chinese purchases by 7%. No wonder Spain is planning to offer residency permits to non-EU investors in return for the purchase of a home.”
On the Market - Los Capanes del Golf, Marbella
Los Capanes del Golf is an exclusive gated community with 24 hour security set in a “golf valley” with exceptional golf and sea views reaching across to the North African coastline. Comprising two, three and four bedroom apartments arranged in mansion style buildings - even the smallest home has a built area of a vast 168m² making it one of the most generous projects on the coastline. All properties have fully equipped kitchens, hot and cold air conditioning and double glazing as well as large terraces with direct golf views. Entirely surrounded a 9-hole full length par 36 golf course, El Higueral, Los Capanes also has a heated indoor swimming pool with water cascades, hydro massage area, vertical projecting water jets and Jacuzzi, a Turkish Bath, gymnasium, sauna and outdoor swimming pool. Five minutes drive to the beach clubs, dining, shopping and entertainment of Puerto Banús and Marbella and next door to Benahavís, the "gastronomic corner of Andalucia".
Two bedroom apartments start from 299,000 euros - up to 40% discount from peak prices.
For more information, visit spanishhotproperties.com.
