This may surprise a few of you who believe everything in the UK press but in prime location areas of Puerto Banus and Marbella property prices generally are more exclusive than they were 12 months ago and we can guarantee they will be more expensive in 2015 and not just in prime location areas.
Two developments in Puerto Banus that our clients really like illustrate this point. The first being Embrujo Playa where 12 Months ago the best priced apartment was 310,000€ and today as we speak the best priced apartment is selling for 350,000 Euros with other similar apartments higher than this price. The second example was a sale in December of last year in Bahia de Banus with an asking price of 499,000 Euros now the lowest priced apartment available is well above 600,000 Euros.
This just illustrates the problem on the ground and managing the expectation of our client who still believe they can buy at last year prices. Some clients expect prices to fall further but that’s not going to happen in Puerto Banus or Marbella.
In secondary locations such as Mijas Costa and Estepona prices have remained pretty flat but they will increase soon as buyers who can no longer afford to buy in Puerto Banus and Marbella have to look at second choices.
Moving forward the cost of land and cost of construction only mean that prices will become more expensive with anything built new having at least a price of 2500 Euros per square meter. When you compare that to some of the bargains that can still be bought at 1500 Euros per square meter one should think very seriously about buying in 2014 or spending more money in 2015
On the face of it that’s a very obvious question to answer and from a legal point of view you should never buy illegal Marbella properties. However there are quite a few property transactions taking place for Illegal properties in Marbella and especially in the Elviria area so why?
First things first what is an illegal Marbella property? Very simply it’s a property that never obtained a first occupation license and therefore is illegal
Secondly what can happen to you if you buy an Illegal property without a first occupation license? The most important factor to bear in mind is you have to be a cash buyer as it’s impossible to get a mortgage on the property. The exception to this rule is where the bank already has a mortgage on such illegal properties and will transfer it to the new buyer. Now however the banks are a lot wiser and will not lend on such properties. The most important factor for buyers of such properties is when you come to sell you can only sell to a cash buyer so selling such properties can be very difficult indeed.
Thirdly why do people continue to buy such properties? The answer is primarily due to the fact that the majority of illegal properties are in the process of being legalized under the Marbella Town Hall plan (PGOU) with some exceptions notably River Gardens and Banana Beach that will in reality never be legalized. So at some point in the future the properties will be able to be sold without any issues. The other major reason people still buy such properties is the price that they can buy for and the location of some properties such as Los Granados de Cabopino which you just can’t buy at the prices they are currently trading hands for.
So should you buy Illegal properties in Marbella? The advice is obviously not unless you see such an opportunity that makes sense for you but most importantly you must be aware of all the shortfalls with the major one being that you may never ever sell your property in the future.
If you want advice in making sure you don’t buy an illegal property in Marbella then please feel free to contact us at Spanish Hot Properties