Market valuations on the Costa del Sol – Buyers are often concerned about property valuations when they are buying in Spain and wonder if they reflect the market conditions, or are based on a vendor’s wishful thinking.
This is more likely to be arise in private sales, but in general, if you use a real estate agent, the market valuations on the Costa del Sol should be in line with what is happening with prices in specific areas and for certain types of properties. One of the best guides I’ve found since I started buying property personally and then as the owner of Location Moves are the quarterly reports from Survey Spain.
This is a network of 15 RICS qualified chartered surveyors located all round Spain and the Canary and Balearic Islands, and was started by Campbell Ferguson who is based on the Costa del Sol.
Insights into Market Valuations on the Costa del Sol
The latest report, published in October 2017, has some interesting insights to how the market is performing so far this year, with input from local real estate agents who at times are quite concerned about the direction the property market is going in, with regard to value for money.
One of the areas of concern is the amount of new construction and one agent suggested that investors were passing over value for money resale properties in favour of ‘shiny white boxes’ in poor locations with no existing community. They believe that buyers are overpaying by 30% for these and that the value will not hold in these properties. This explains the fact that some new projects are not moving as fast as developers would like. On the other hand, new builds in desirable areas with well established communities around them are selling fast. But, buyers should research the value aspect before making a commitment.
On the upside of the market, established agents who specialise in the higher value areas and have solid local knowledge of property values, report that sales have speeded up in 2017, which has proved to be a better year than 2016.
Survey Spain also covers the ‘value per square metre’ and its statistics indicate, “ a substantial increase in the difference between Asking and Buying prices that we have recorded at 12.01% of the Asking Price.” It reveals that the highest valuation in the third quarter of 2017 was for a property in Los Monteros, a part of Marbella East, whilst the lowest was for a rural property in need of refurbishment.
Overall, Marbella still has the highest valuations per square metre, and this has encouraged optimistic owners and agents to increase asking prices. Investors and buyers simply looking for a holiday home or year round residence are advised to talk to an agent who will give a fair and honest appraisal of a property’s value and who will ensure that buyers don’t end up purchasing a property at ‘any price’. Today more than ever, market valuations on the Costa del Sol must be taken seriously by buyers and real estate agents alike.
With that in mind, please contact me for a no-obligations chat about what you are looking for and I will do my best to help you.