Would any distressed property Marbella and Costa del Sol have to offer suffice to re-build the local property market environment?

Would any distressed property Marbella and Costa del Sol have to offer suffice to re-build the local property market environment?

Marbella : Spain | Mar 06, 2012 at 5:06 PM PST
Source: PRWeb
Views: Pending

As international property markets slumped in the wake of the global financial crises, Marbella was also affected. A surplus of new built property as the market slowed put many developers into difficulty with banks taking ownership of significant amounts of property and now looking to offload this distressed property. Marbella and the Costa del Sol area nonetheless still shows market activity and property consultants E-merging Property Group, believes that combined with recent high profile property investments such as the Puerto Al Thani, this shows a stable future for the area. March 06, 2012

Spanish property experts E-mergingpropertygroup.com, today released a statement on the growing market activity of buyers in Spain’s Costa del Sol picking up distressed property. Marbella, according to the company’s distressed property expert, David Woodland, is in particular proving a magnet for the financially solvent looking to pick up a bargain.

“With Spanish banks looking to offload repossessed properties that fell into their possession as the market crashed post-credit crunch as quickly as possible, many are on the market at up to 100% less than what their asking prices were a few years ago”.

Having lived and worked in Marbella property market for a number of years, the E-merging Property team are now in a position to gain access to some of the best distressed property Marbella and the surrounding areas have to offer. Woodland states “while of course there is a significant down side to the recent tough economic times with many companies and individuals having fallen upon tough financial times, which is never pleasant to see, these things do go in cycles. The major plus side to the current economy is that for those who are currently in a financially stable and solvent position, the local market offers some phenomenally discounted property at present.

Leading up to the peak of the market four or five years ago banks were providing property developers with high levels of financing, with the property market booming. Those developments caught by the market’s downturn were badly affected. A lot of developers managed to hold out for a couple of years, hoping that the financial crash towards of the last decade was a blip and the market would recover more quickly than has been the case. However, the past year or two was a bridge too far for many and unfortunately a lot of property has been repossessed by the banks, which provided the original financing. With the banks’ prerogative to recoup as quickly as possible the sum of the financing which was provided to the developers, they have put such properties on the market at prices which are often close to cost. In cases where the volumes are higher, for example larger complexes such as property developments on golf courses, they are even willing to take a loss to liquidise the assets into cash.

Banks looking to offload this type of property are also offering financing of up to 80% to financially solvent buyers, as an added incentive to speed up the sales process. All of this adds up to a scenario where buyers looking at the distressed property Marbella, and the whole of the Costa del Sol, is holding, are in a very powerful position and are able to exploit the market to their considerable advantage”.

E-merging Properties have been sourcing distressed property in Marbella and the Costa del Sol for a couple of years now and believe that potential buyers would do well to take advantage of the present stock of distressed properties. Marbella has long been the favoured destination for Brits, Northern Europeans, and more recently Russians, buying a second home or seeking more permanent relocation to a warmer climate. This has meant that despite the present economy, of all foreign property markets selling vacation and seaside property, the Marbella market continues to display activity, albeit not on the scale of the period leading up to the boom.

Woodland stated that the fact that there are still plenty of property transactions in Marbella and the Costa del Sol, when buyers for other markets such as Bulgaria, Portugal, Greece and Croatia have all but disappeared is a positive sign for the area. “Massive up-market investments such as Puerto Al Thani, a €400 million marina investment by Sheik Abdullah Ben Nasser Al-Thani, due for completion in 2015, show the continued allure of the area. The hangover of distressed property from the abrupt end of the construction boom, will dissipate over the next couple of years as the present supply is being gradually bought up at great prices. When the price is right, there is always a buyer, especially in Marbella. The Puerto Al Thani project, which is planned to be the most luxurious marina on the Mediterranean, shows that Marbella continues to be a prime real estate area and will continue to be into the foreseeable future. In the relatively near future the supply of large swathes of repossessed property and developments will run out and prices will immediately rise significantly as a result”.

In the meanwhile, Woodland and the E-merging Properties team plan to continue helping their clients pick up the best bargains from amongst the distressed property Marbella and the Costa del Sol still has. Woodland said that currently over 50% of the transactions that the company facilitated involved bargain distressed property. “Marbella is a place we will always love and call home. If we can use our knowledge of the area to help newcomers get access to these bargain properties and come to the same conclusion when they may not have looked at the market here while it was at its peak then there will have been a silver lining to the past few years”.

About Emerging Property Group Ltd.

Emerging Property Group Ltd...The owners and team have been living and working in Marbella and the Costa del Sol for many years and have knowledge of the local property market that few agencies or consultancies can boast.

For the original version on PRWeb visit: http://www.prweb.com/releases/prwebdistressed-property/marbella/prweb9257003.htm

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