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As Costa del Sol property management experts, our owners are interested in the potential for rentals and how the property market is developing. So in this blog, we’ve reviewed the latest reports and summarised some of the key indicators for tourism and property in 2017.
Things are looking strong for the Spanish tourist sector this year, with the Spanish Hotel Federation reporting 90% occupancy over the Easter week nationwide. Marbella Town Hall announced average occupancy of 80%, with 100% in many places over the long Easter weekend. As a result of the demand, 35,000 jobs were created in Andalucia over the holiday period.
Marbella is the third most profitable tourist destination in Spain, and the most profitable in Andalucia, showing the resilience of the destination and the value of the brand of Marbella, which positively influences tourism for the whole of the Costa del Sol. Despite concern about Brexit, the Marbella Town Hall announced that according to their data and indicators, tourism from Great Britain continued to grow in the same trend as seen in 2016 and stated that they do not believe it has made a difference.
11% more passengers are already booked to fly into Malaga airport from April to September compared to 2016, and this figure should increase with late bookings. In Spain as a whole, there has been a big increase in nights spent in holiday rental properties and short stay accommodation in 2016, with a 10.2% compared to 2015, so this is definitely a growth sector. Our sister company HolidayRentalontheWeb saw a 32% increase in holiday rentals in 2016 compared to 2015, so locally we are performing much better than the national average.
Things are strong in the property market as well. Real Estate Agent Panorama recently released their 2017 property market report for Marbella, which shows that house prices are on the rise, with healthy sales volumes back to pre-crisis volumes, although sales volumes have levelled off after a fast period of growth between 2012 and 2015. New build developments are back, with lots of activity in that sector and 77 new developments currently on the market along the Costa del Sol and international funds investing millions in residential developments in the area. The issues with Marbella’s Town Plan are encouraging land purchases in the areas of Benahavis and Estepona, widening the prime real estate areas in future years.
However, Panorama warns sellers that the price still needs to be right to sell and not to think that an improving market means that they can put their prices up. They say, “when vendors fix their asking price to the right level where their properties are perceived as very good value for money, there is an almost instant response in the marketplace”. So, if you’re looking to sell, price is very important. Find out more and read the full report
Steady growth is expected in the next few years, with more demand from the Spanish market driving sales, well-priced properties selling more quickly and a gradual property price increases.
We are seeing a growing demand for high quality long-term rental properties, with properties in short supply. Due to the increased regulation in the holiday rental, the demand and the ease of management of a long-term rental, this can be a smart option for property owners playing the long game and waiting for property values to reach a peak once more. We have a dedicated website for long term rentals and our Long Term Rental specialist Sergio is here to help owners make the most of this great market, manage the properties and deal with the clients. Please contact us if you’d like to discuss renting your property long term.