May Newsletter 2008 Marbella Property

Over the last year the Euro/Pound exchange rate has varied 15% in favour of the Euro. Therefore, the Euro is now 15% higher than a year ago. Therefore, property prices in Marbella are 15% more expensive for a UK buyer. But, it also means that a UK based vendor of Marbella property shall be obtaining a 15% more on his property in Marbella if he were to sell it and convert to sterling at present rates.

As the property market in Marbella is slow, our recommendation to these vendors is to reduce their asking price by 15% so as to make the property more interesting and to incentivate purchasers. If they sell at 15% less in Euro terms, they shall still be achieving the price they anticipated a year ago in sterling.

This is yet another factor that makes present conditions interesting to purchase property in Marbella. Apart from this 15%, there are many vendors who have really lowered their price by 10%. Therefore, the total reduction is 25%, in comparison with a year ago.

But these conditions most probably shall not last for long. The U.S. Federal Reserve has lowered interest rates yet again and soon the European Central Bank shall have to react by doing the same. Europe can not compete in global trade with such a high currency. At the moment the ECB'S main concern is to control inflation but the predictions are that later in the year there shall be more of an economic slowdown in Europe. When this occurs the ECB shall probably start to lower interest rates. That should lead to a weakening in the Euro Exchange Rate with the Dollar and Pound Sterling. In consequence British vendors shall be less willing to reduce their prices and also British purchasers shall find property in Marbella cheaper favoured by the Exchange Rate. This shall spark off the demand again and this shall start absorbing the excess in supply which exists at the moment. Once supply and demand of property get to more equal levels, prices shall not drop and, when the demand exceeds the supply, prices shall start to grow.

During that period increases in real personal wealth combined with decreases in property prices shall provide a new captive public with money ready to spend. By then the credit market should be healthier and banks shall be more willing to give loans.

Another important factor in relation to supply and demand, are the new building regulations throughout Spain and specially in Andalucia. These regulations are much stricter, therefore releasing less buildable land, and shall make new property more expensive which shall mean there shall be less new developments available consequently restricting the supply.

Our conclusion is that now is the moment to buy property in Marbella. Villa Marketing has launched a new online reservation system for holiday rentals in Marbella.

News on Villa Marketing's web-site on Marbella property: www.villamarketing.com
You can now search for your holiday apartment or holiday Villa by entering your dates of travel and the system shall show you what is available. Otherwise you can click on prices and availability and a calendar shall appear showing availability. On this site you shall find apartments in Puerto Banus, Marbella Villas with pools and apartments in the Marbella golf valley.

If you do not find what you are looking for, contact Villa Marketing and they shall find the right property for you.

Marbella Elite Homes

Our Elite Homes Division may offer you some of the Best Properties in Marbella. From Luxurious and Exclusive residences, to Ultra-modern Intelligent Homes, to Charming Andalusian rustic villas, be sure we have what you are looking for.

Marbella: Price Reduced

Some of our Marbella properties have seen their prices reduced by their owners so as to achieve a sale rather sooner than later. These properties represent competitive value in today's Marbella property market. Click here to see details of these properties in Marbella.

 

Looking for Marbella Rentals?

Our rentals department can offer you also a quality selection of holiday rentals in Marbella and also long term rentals on the Costa del Sol. Please, check our property rentals section to learn more.

 

Luxury Marbella Rental Villa

Royal Roman Empire

Click Here for more information.

 
 
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