Sales of La Zagaleta property are set to increase as this year progresses experts have claimed. According to Spanish based British realtor First Property Choice, demand for quality La Zagaleta and Marbella properties remained strong during the recession, with only a 20-25% fall in enquiry numbers.
"Now," said Mark Goodwin, "that confidence is returning this demand is turning to sales on an increasing basis. And this trend is set to intensify as confidence continues to grow throughout the year."
"The availability of mortgages could also become a factor in increasing demand later in the year, although most La Zagaleta property buyers are cash-buyers," he added.
La Zagaleta is one of the most exclusive resorts in Europe, and also benefits from its location within Marbella; the Monte Carlo of Spain. Luxury villas in La Zagaleta are priced from 1 million euros, to 30 million euros, with the median price being 6 million euros.
The prices have held during this recession, because of the exclusivity of the resort, the quality of the property and the wealth of the owners, who are able to hold out and wait for their price to be met. That said: cash-rich buyers have been securing properties at discounts of up to 15%, particularly when the seller is keen to move-on, even if a sale in this price bracket is rarely ever absolutely essential.
Sales of overseas property in general have been increasing since the first signs of economic recovery began appearing last April. It almost immediately emerged that sales of prime property were increasing faster than other classes.
There have been a few theories put forward in explanation for this, but the main ones are: the prevalence of cash-buyers due to the lack of mortgage availability, and the fact that the wealthy had been least affected by the downturn than most, so fear over the extent the crisis would reach was all that had been stopping them buying. There have been many things that support one or both of these reasons being mainly responsible for the prime property buying spree. More recently inflation fears have had the wealthy hedging against currency devaluation with bricks and mortar properties.
Whatever the reason, La Zagaleta sellers have already seen the benefits of increasing , not demand, but actual willingness to buy. Because sales have started increasing because the first signs of economic recovery made it clear that the recession would not get as bad as some feared, it stands to reason that sales growth would intensify as that recovery gathers strength.
