Marbella, Spain (PRWEB) May 17, 2009
Obelisk Investment Property's Market Analyst, James Gonzalez, is sticking his neck out and predicting that those who invest in the Spanish property market now, particularly the Costa del Sol, could be reaping rich rewards by 2010.
James says that a number of positive indicators over the last few months have convinced Obelisk that the market is on the road to recovery. "Until recently, prices were, on the whole, heavily inflated with oversupply in some areas," explains James, "and it just didn't offer the right kind of investment potential to feature on the radar." But now, putting his cards on the table, James forecasts a 2.5% to 3% growth on 2009 prices for Costa del Sol property next year.
So what has changed on the Costa del Sol and why is Obelisk's Market Analyst prepared to make this bold prediction when other property experts aren't? Based in Marbella, southern Spain, Obelisk has its ear to the ground and its in-house research allows James to make this exciting forecast.
Part of the reasoning behind the predicted 2.5% growth comes from the logistics of property cycles. The newly awakened interest in Spanish property on the Costa del Sol means that oversupply will be consumed and availability reduced. Add to this the fact that new construction is virtually at a standstill with no major projects planned for the near future, the Costa del Sol property market will clearly bottom out this year and next year herald the start of an upward cycle.
Obelisk believes next year's property growth will come from a combination of the kind of constants offered by few other locations and some subtle changes. Put together, these constants and changes make the Costa del Sol one of the best medium to long-term investment and lifestyle options available at the moment.
"Let's start with the constants," says James. "Spain is the world's second largest tourist destination with the Costa del Sol a firm favourite. It's been that way for some time and that really hasn't changed, even in the face of global economic downturn. On the contrary, record tourism figures were recorded over the Easter period on the Costa del Sol."
Spain's high tourism profile alone is pretty significant but when you add extensive transport infrastructure investment to that, it all adds up to the kind of potential that would get any other property market well and truly noticed. In common with most other European countries, the Costa del Sol market has undoubtedly suffered a downturn, but it's starting to stand out from the crowd again for both investors and lifestyle buyers.
Prices are now at an affordable level for the first time in five years. "You have to look carefully, but you can get some pretty impressive bargains on the Costa del Sol at the moment," says James.
James warns against buying so-called 'repos' (repossessions) or 'distressed properties' in Spain. "They can mean months of paperwork and costs and what starts as a 'bargain' turns out not to be one after all." He advises that one of the best sources of cheap property in Spain is buying directly from the developer, although this too should be approached with caution. In the past, some people have had their fingers burned with Spanish property and found they had bought properties without the correct licences in place. For example, only properties with a First Occupation Licence can be purchased with a mortgage, can be connected to mains utilities and are ready to move into. The key is to buy from a reputable developer in a small finished development and ensure that the First Occupation Licence is in place.
So, what does Obelisk recommend you buy to make the most of this fantastic lifestyle investment opportunity? "Look for the trio of high quality property, excellent value and peace of mind," says James. "The usual location chestnut is not quite so important since most areas around Marbella fulfil your location criteria anyway." With this in mind, Obelisk has cherry-picked a selection of new developments, all of which offer the very best when it comes to quality, value and due diligence (all have their First Occupation Licence and are ready to move into). Breathtaking views - a Costa del Sol hallmark - are a given in all the developments as are extras such as free lifetime use of a golf course or luxury furnishings. Mortgages of up to 70% or 80% are readily available for properties on all developments.
Buyers are realising that if they can find the right property at the right price, with the all the legalities in place, Spain and particularly the Costa del Sol, is worth looking at once more, with buoyant tourism leading the property market recovery. James says that just a year ago, he wouldn't have expected to be predicting such fantastic news for the Spanish property market, but Obelisk's research is showing consistent evidence that buying a discounted Spanish property now could be the best decision you ever made.
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE). International calls: 0034 952 820 319.