- According to Tinsa, one of Spain's largest valuation companies, the prices of new housing increased by 14.2 % during the period between the third term of 2001 and the third term of 2002. During the same period, according to the same source, the prices of resale housing increased by 18%. These figures show an accumulated and average increase of 48% over the last four years, and this rises to 60% during the period between 1996 and 2001.

There has been a great change in the Spanish economy over the last decade. At the end of 1992 Spain was suffering one of the deepest economic crisis of her recent history. Unemployment was running at 20% and the inflation was at 6%.

Today, Spain has one of the highest growth rates of the European economies and has become the main European investor in Latin America. The Spanish economic structure has been transformed and modernised. Spain has reduced her public debt considerably and has been one of the few European countries who have met the requirements of the European Stability Pact. Between 1996 and 2000 the Spanish economy grew at an average of 3.8 % per annum against an average of 2.6% for the total of the Eurozone. This has allowed Spain to recover lost ground against the richer countries within Europe. Today the Spanish National Gross Product per person is an 82% of the European average. Similar growth rates are estimated for 2003.

-The peak season has arrived and Marbella population grows to its maximum as people flock in to our town from all parts of the world. The summer means guaranteed sunshine and warm weather everyday. Beaches, restaurants, nightclubs are full; long evenings with "al-fresco" dining, glamourous parties in luxury mansions, music, festivals, town squares and yacht harbours full of life till late hours in the morning; the next day have a game of paddle-tennis, golf or take a boat trip out to sea. Yes, Marbella is a way of life.

And the property market continues to see sales completing. Nevertheless, it is adviseable to use a reputable agent as some products might start to see a slower return.

This month the road between Estepona and Sotogrande has been completed and opened to traffic. This allows a double lane in both directions and next month the toll motorway shall also open. This will allow traffic to flow much easier giving a boost to the property market along this part of the coast.

There is a lot of construction and a lot of sales taking place. There is a mini-boom in real estate at the moment. Everything that is being built is being sold. After a few years of crisis at the end of the eighties a new Mayor came to Marbella and started a complete renovation plan of the town with investments from the Town Hall to make the tgwn cleaner and more beautiful and fill it with flowers and garlens. This helped to increase the buyers from many European countries and once the economic situation in the rest of Europe got better Marbella has been offered to them as the unique resort for quality in Europe.

Climate and Entertainment

With sunshine most of the year, it can beat the climate of any European resort; warmer then the South of France; it does not receive Atlantic winds that some Atlantic resorts receive; it has better beaches than some of the Italian Rivieras and is in much closer reach then the Greek Islands.

With plenty of golf courses (the Costa del Sol offers in total approximately 54 golf courses some of them being amongst the top professional courses in the world) and other sports facilities, it is an ideal place for holidays.

Also from Marbella one can visit the charming and historical cities and monuments of Andalucia: Ronda, Sevilla, Cordoba, Granada, etc. One can visit the ski resort of Sierra Nevada at just two hours, and the exotic Morocco is just a boat trip away.

Lots of nightlife, exquisite restaurants of international fame, discotheques and many private parties give Marbella a nightlife which many of our buyers enjoy.

Accomodation

Having many 5-star hotels and 5-star resorts, the visitors of Marbella are potential clients for quality villas and apartments. And this is what actually is happening. Most of the rich and famous from Europe and other parts of the world, business men, company directors, etc. come and visit our town, and end up buying properties.

Economy

The economic situation in Spain and in the rest of Europe is helping considerably to the fact that buyers are more willing to spend on a second home. The economic situation in Spain is good; the economic situation in central Europe, Holland, Belgium, etc. is good; Germany is recovering; the English pound is strong and also the US Dollar is strong. All this helps and contributes to the fact that Marbella real estate is good value in comparison to other quality resorts. Most people believe that, with the European Union, prices gradually will become more homogenous throughout Europe. Therefore, many people believe that there is still room and margin for Marbella real estate prices to grow as they are still considerably lower than in other parts of Europe.

Infrastructure

At the moment, another important factor on the whole coast is that there are big investments from the institutions to improve the infrastucture, be it town hall, government, or regional government:

A new motorway has been built to help traffic flow easily from málaga to Gibraltar.

A desalinization plant has been built to guarantee the constant flow of water.

There are new roads.

The beaches have been redone.

There are new harbours being built.

The airport has been improved.

There are plans for high speed trains connecting with the rest of Europe.

There are also plans for extension of the harbour in Puerto Banus and the harbour in Estepona and for the one in Malaga to incorporate areas where both mediterranean cruis and transatlantic cruis can be received. This will create a big impact on the area.

Also new congress halls are being planned so as to convert the Costa del Sol in an area where big congresses and conventions can be held throughout the year.

Permanent population

Another increasing element in Marbella is the rapid growth in permanent population. This is a population of European citizens who live here the whole year around and whose children go to some of the many international schools. These people are still active, they are not retired people, but they are active in some business within Europe or within the world, and thanks to the technical improvements in communications as faxes, computers, etc. they have the possibility to remain in touch with their businesses and their works, while taking advantage of our fantastic climate and environment. Also there are plans for an international University to be built in Marbella, which will increase the permanent population of Marbella.

Conclusion

The only conclusion one can reach is that it is a great moment to buy. Have a search through our database to find the property you are looking for.

If you are looking for a school for your children, below are some useful websites:

- www.swanschool.com

- www.aloha-college.com

- www.eic.edu

- www.ecos.attendis.es

- www. colegiosanjose.net

- www.colegioalboran.org

- Marbella Beaches Full: Most inhabitants of the Costa del Sol have been taking advantage of our fantastic weather by sunbathing on our beaches. Many even had a swim in the sea. Temperatures some days have reached 29 degrees C. This is definitely very different to most European capitals at this time of year.

Bucking the trend of other European countries, the cost per square metre ofnew buildings increased beyond what was expected. Latest industry projections show that the rise will be sustained into the foreseeable future.

The price for a square metre ofconstructed land in Malaga roseby a massive 18.5 percent with Torremolinos and Benalmadena not far behind at 13.4 percent. This proves that the market is stillvery stable and that property is still the best investment. Can you think of any other type of investment with a return rate of 13.4 percent per annum, with no risk to your initial capital?

Another piece of positive news is that the ease of trading in Euros has increased the amount of foreign buyers on the coast. No longer worried about converting currencies and paying brokers, members from the Euro zone are now able to directly compare property prices abroad with those in their own countries. The results speak for themselves and the choice our fellow Europeans are making is Spain, and mainly here on the Costa del Sol. Who can blame them with all that the coast has to offer together with the fantastic property offers available?

It is estimated that foreigners will purchase 15 per cent of properties under construction at the moment, in the first nine months of last year a staggering 1081 million Euros was invested (or 180,000 million pesetas in old money). So when you hear rumours of a recession, of a global slow down or of economic nightmares, just sit back on your terrace and think how lucky you are to be living here on the coast. Or if you are reading this and thinking of buying a home here, you had better move fast. Contact Villa Marketing S.L. and we will be happy to help you get a step up on one of the fastest growing property ladders in Europe.

With property growth this good it has to be said that for the Costa del Sol, the clear blue sky is the limit!