In Spain the luxury real estate market is now looking reasonably healthy. Prices have certainly dropped but they were the first to stabilise as soon as the excess stock was absorbed. Many people who had overstretched themselves got into trouble as interest rates rose to levels they hadn’t been before and others in that area were bankers, lawyers and other professionals etc… whose industries disappeared almost overnight and they were unable to pay the large mortgage repayments that came with the territory.

The now famous distressed sale market grew and virtually disappeared quite quickly as this excess was soaked up by those who had previously wanted to buy in the luxury areas but the price was slightly out of their range. As distressed sales appeared and were comparatively cheap they dragged the market down with them of course. Now they are largely gone the anchor on the market has gone too of course.

Not that you are suggesting price rises but with low interest rates in all of Europe, where many of the luxury property buyers come from, and the fact that those counties are slowly coming out of recession, many people now looking to buy in Spain at good prices. It is unlikely that in this particular sector at least there will be any further price falls. As there are limits on the number of luxury Spanish properties on sale the scarcity principle should come into play and maintain prices long and medium term.

So where are the luxury properties? Spain has many areas that are havens for the super rich, the obvious candidates are Marbella, Andratx in Mallorca, Catalunya, sprawling city centre pads in Madrid and Barcelona, the more exclusive golf resorts dotted around the country and the Canary Islands noted for their weather all year round are also popular in this field.

Marbella is an area of prestige and elegant which modern luxury homes, newly built contemporary mansions, high end apartments overlooking the breath taking coast line. Marbella has been named the “Hollywood of Europe” with exciting new restaurants, hotels, casinos, and much more.

Malaga airport has now become International attracting even more visitors from all over the world, with an increasing boom in the economy. With realistic prices literally property is being snapped up before the adverts hit the windows.

Investment purchase or personal, there are now huge rental returns on properties – Spain is showing in the yearly record of destinations to be one of the highest tourist locations in the world today! Fantastic news for buyers as the euro interest rates are extremely low with competitive mortgages at the moment capped at 4%, 100% finance is also now achievable for foreigners.

Flying out to Malaga is simple with a short journey of only two and a half hours,

Hot Info: New train is being built from Malaga. Once arrived in Malaga there will be a new high-speed train which will run locally from Malaga to Estepona. By the end of this Year it will be running from Malaga to Madrid.

It has also been confirmed that Disney has purchased land and will be coming to Marbella! Property prices are also reported to double with the amount of visitors from around the world tripling with the new international airport.