Timing is often said to be the key to successful property investment. And the right timing for the Golden Triangle is now. Why?

For yet another year Spain continues to top the list of best places to buy property. Not only is its economy firing on all cylinders and tourism booming, its property market shows every sign of having moved out of the emergency zone and back into a cycle of growth and stability.

As Europe’s second largest country, Spain offers a wealth of destinations for the property buyer. The Costa del Sol, Costa Blanca and the Islands are perennial favourites among foreign buyers. But at Asset Folio we’d like to propose you narrow your search down to one small area comprised of Benahavis, Estepona and Marbella at the west end of the Costa del Sol.

This so-called Golden Triangle literally has it all: an exceptional climate – over 320 days of sunshine a day (and they come guaranteed); second-to-none communications so you can be anywhere in Europe easily and quickly; and stunning surroundings that combine the Mediterranean and the mountains to perfection. Add to this, soaring tourism, a buoyant job market and a property market on the rise and we believe the grounds for buying a property don’t get much better.

In June 2016, the Tinsa report highlighted key areas within the Costa del Sol with above average growth in property sales and prices. The three municipalities of Benahavís, Estepona and Marbella ranked higher than most other resorts. This tendency continued throughout 2016.

The Golden Triangle is popular for several reasons:

•       Climate – reputedly the best (even) on the Costa del Sol
•       Scenery – the greenest and most scenic surroundings.
•       Communications – the toll motorway takes you to Malaga Airport in just 30 minutes.
•       Amenities – world-class amenities are on your doorstep: shopping, golf courses and other sporting facilities, private and public    healthcare, choice of international and Spanish schools, and leisure options.
•       Year-round resort – Marbella is the best resort on the Costa del Sol for year-round activities and events.
•       Quality property – choose from luxury penthouse living to an exclusive country estate with just about everything in between. The    Golden Triangle also offers an amazing choice of locations – frontline beach or golf, mountain-side, lakefront, city centre…

The Golden Triangle suffers from high demand and short supply. In 2016, Marbella and Benahavís ranked highest in Malaga province for permits for new-build villas – 99 units in Marbella with a value in excess of €95 million and 69 units in Benahavís valued at €40 million. Estepona had the highest number of permits for apartments (388), followed by Benahavís 

THE CASE FOR RENTING YOUR PROPERTY IN THE GOLDEN TRIANGLE

Long-term

Although just 22.7% of properties are used as rentals in Spain, this figure is rising as more residents turn to renting for its easy accessibility and mobility. Rental rates rose by 10% in Spain generally in 2016, but by 14.67% in Malaga province. National rental returns were 5.4%.

Short-term or holiday lets

Holiday letting is big business on the Costa del Sol where 44.1% of tourists visiting in 2016 stayed in non-hotel accommodation. According to the letting portal HomeAway, Malaga was the top destination for holiday lets for British tourists in 2016 and the fourth most popular with Spanish tourists.

In summer 2016, 73% more people chose Airbnb accommodation for their holiday lets and Spain ranked third in Europe in terms of number of places to stay. Malaga was the fourth most popular option after Madrid, Barcelona and Mallorca.

There are no official statistics for holiday rental rates. However, according to pisos.com, holiday accommodation in Malaga averaged €532 a week in 2016, up 14.39% on 2015. Spain Holiday reported at the end of 2016 that bookings for holidays in 2017 were up by 5%.

THE CASE FOR BUYING IN THE GOLDEN TRIANGLE. NOW

Timing is often said to be the key to successful property investment. And the right timing for the Golden Triangle is now. Why?

•       Supply is tight because of high demand, but not so tight that it’s driving prices sky-high. 
•       There’s a good choice of new-build property to suit all budgets and location preferences. As always, with new development, it’s best to       get in early.
•       Prices are on an upward trend. As you’ve read in this brochure, the experts are unanimous – prices are set to rise by at least 4.3% by         the end of the year. Buy now and save yourself that 4.3%. 
•       It’s one of Europe’s most popular places to holiday and live so demand for property to rent or buy is a given. 
•      The Golden Triangle property market is in the recovery stage, one of the best times to buy because the market isn’t flooded    with cheap,poor quality properties and the price is right.