The danger of generalised property article

After posting the article on S&P and their property forecast I had someone contacting me panicking that these articles would be detrimental to Costa del Sol real estate. Although I can see why a negative article, would be viewed… well negatively, there are also reasons why it should be written about.

First regardless of whether it is positive or negative, all buyers and seller should have a clearer idea of the national trends and what might happen in the future to the Spanish property market. Once the information is on the internet, it cannot be hidden. Nor should it be in my opinion.

My second point is to sellers. If your property is going to cater to a primarily Spanish market, be a main residence and is not in a prime (where there is demand) location. Then, in my opinion, a seller should be sensible and price accordingly.

My third point would be to the many potential buyers that are looking for properties on the Costa del Sol. Many are looking for properties with sea views, large terraces (either west facing for winter sun or south facing for views), 2 to 3 bedrooms, approximately 90 square metres built. Locations vary between those looking at being in the hustle and bustle of a popular resort town such as Fuengirola or Marbella or those looking at being within easy travelling distance of a town or beach. As soon as these criteria are taken into account, the potential supply of properties for sale along the Costa del Sol lowers quite dramatically. And I have not taken into account the fact that many only want to be up to 200 metres from the beach!

Finally it is worth remembering (or ‘discovering’ if you do not read my blog avidly!) 1 in 5 property buyers in the province of Malaga is not from Spain. This means that 20% of all buyers are not reliant on the local changes to buy. It is also worth pointing out that many looking to buy on the Costa del Sol tend to me more affluent that the average buyer and tend to come from countries that are doing economically well.

So in conclusion, a property in a prime location and priced correctly at this time will not be decreasing by much (if at all) in the following years.

Regards
Andrew Belles

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