The information on the price index for the second quarter of 2016 for Marbella has been recently released by the Ministry of Housing showing the same situation we have been experiencing in, at least, the last three years that is that the prices are not showing a real upwards tendency. I honestly thought that we were going to see some increases but it is not the case for Marbella. In Estepona, things are a little bit different and a slightincrease can be observed in the curve.
To contrast the information given by the Ministry, I have checked the index price given by one of the best real estate portals in Spain, Fotocasa. What we can see is that, although the values are different which is normal because the portal works with “for sale” properties, the tendency is about the same. I have included charts from Fotocasa for Marbella East, the Golden Mile and Nueva Andalucia. In Marbella East the prices are lower than at the end of last year, on the Golden Mile the prices went up a little at the end of 2015 but went back down during 2016 and in Nueva Andalucia they went up at the end of 2015 and are flat with a tendency down during 2016. Therefore, the same tendency as the official data: slight increases at the beginning of this year and since then flat.
To be honest, although I thought we were going to see increases in prices, I think it was more a desire for the normalization than a reality as I still can feel that the market is slow. What is true is that we are seeing active movements by developers and institutional buyers looking for land to build and opportunities in the market but the flow of final buyers is still slow.