The results of a study by the Mitula Group, which tracks property listings across the country, show that the coastal parts of Spain enjoyed the fastest growth in real estate prices in the final quarter of 2016. While the overall results are statistically slanted towards the large population centres, where prices have been growing more slowly, and also include large interior regions where they might still be dropping somewhat, they do reflect the fact that increases in property values are fastest in the so-called Costas.
Among these, the trend is strongest in the most desirable, often more upmarket areas such as Mallorca, Ibiza and Marbella. It is the product of record tourist numbers, a resurgent construction industry with strong demand particularly for new-built properties, and in many cases limited supply. It stands to reason that in such areas bank repossessions are all but a thing of the past and have little effect on the market and prices. They were once quite common, in the aftermath of the financial crisis, yet are now very hard to come by in luxurious destinations such as Marbella. In places such as Almería, Murcia and the Southern Costa Blanca, ‘bank repos’ are still available and exert downward pressure on prices, if not on sales. Continue reading »