Marbella, Spain

This marks my second holiday in the Spanish Riviera since 2005. Four years ago, Marbella and neighboring towns were littered with cranes; not anymore.

The last time I visited Marbella the Costa del Sol region was in the throes of a major real estate boom that saw prices extend as far as the eye can see; now the property market has crashed and bargains beckon in Spain.

If you’re looking for an affordable condominium in the Spanish Riviera then now is the time to make a purchase following a 15% to 40% bust since prices peaked in 2006.

According to Banco Bilbao Vizcaya Argentaria there’s about 800,000 to 1.4 million unsold homes scattered across Spain, including Costa del Sol. The bank estimates it’ll take about two years to absorb this supply but I think it’s looking more like three years or more. There isn’t a week that goes by whereby banks aren’t repossessing residential property.

Along the stretch that’s between Puerto Bañus (ritzy high-end jet-set enclave) and Marbella (coined the “Golden Mile”) the majority of properties are considered “high end;” they’ve declined anywhere between 15% to 25%. But throughout the “ritzy” coast many more affordable areas have declined sharply with homes or condos in the €700,000 range down at least 20% since the market peaked about three years ago.

Basically, if you’re looking to buy a summer residential dwelling in southern Europe, than come to Spain. The weather is unbeatable, the food is terrific and the Spanish are very warm and friendly. Compared to 25 years ago, Spain is highly modernized and offers a first-class infrastructure of highways and roads. Malaga Airport is just a 35minute drive from Marbella.

I just spent a week on holiday with my girlfriend at the Hotel Puente Romano – what an experience! If I was in my late 50s or early 60s and looking to settle down amid retirement then I would certainly be buying in Costa del Sol right now. The price is right.

For more information check out Panorama or Marbella’s oldest real estate agency at www.panorama.es