50% of the names mentioned in The Sunday Times rich list made their money through property investment; Equities, stocks and shares can be volatile, however, property is historically a stable investment; No other type of investment today offers the stability, simplicity and excellent returns offered by property investment.
As with the majority of global markets Spanish property has seen heavy declines since its peak in 2006. In terms of official* accumulated declines since the peak of the market, the Mediterranean Coast has seen the highest declines at 31.9%, followed by Capital and Major Cities with 25.4%, Metropolitan Areas with 25.4%, , Balearic and Canary Islands with 20.7%.
The Bank of Spain’s latest report suggests that the worst hit areas could experience a decrease of up to 38% from peak to trough and predicts that prices will not begin to rise again until the end of 2012 in the worst case scenario.
At PGI Marbella our exclusive promotions generally enjoy up to 50% reduction on their original values and consequentially have been discounted to levels far below the national average! Even if the market drops to the levels predicted by the Bank of Spain, our promotions have already been discounted at far greater levels!
All is not doom and gloom though as the current opportunities for distressed pricing and bank repossession properties are generating a massive upsurge in sales. In the second quarter of 2011 property sales in Spain were up by almost 23% according to Government figures! Overseas buyers accounted for almost 10% of these transactions with Malaga province attracting the second highest level of sales.
The upsurge in sales is being fuelled by the availability of finance; at PGI Marbella we have negotiated some of the best financial conditions in Europe on our promotions offering up to 100% finance! – requiring the lowest investment levels for property in Spain ever seen!
In addition, our Interest spreads are the lowest in Spain if not Europe – from 0.25% above Euribor! Currently offering you the opportunity to borrow at rates in the region of 2.25%!
Outside of the fantastic finance terms and heavily discounted opportunities Marbella is starting to see tourism return to the coast. The expansion of Malaga airport is almost complete and ongoing regeneration projects are underway – including the proposed €400 million expansion of the La Bajadilla Port in Marbella by the owner of Malaga football club Sheik Abdullah Ben Nasser Al-Thani.
We carefully select the properties that we include in our portfolios to ensure that there is a genuine rental market and opportunity for future growth. Whilst heavy discounts and availability of finance are one of our key criteria, the quality of construction, location and amenities are equally important in ensuring future demand for your investment.