Diana Morales has recently released the 2018 edition of their well respected Marbella Property Market Report.
In an era where we’re ‘back to business as usual’, the main message is one of sustainable growth and continuity in the year ahead, but also a reminder to keep a sharper lookout for potential spoilers than the industry did in the years leading up to 2008.
Every year we take time out to take stock of the market; looking back, at the present and forward—the goal being not so much to describe the current situation but to see if there are any important trends or signals that can help us plan for the near future.
Having sailed the ship through stormy weather we now find ourselves in calmer waters on a local, national as well as global level. Geopolitics aside, the world seems to be slowly gaining traction and economic growth forecasts are cautiously being raised for the euro zone as well as other parts of the world, though warnings about public, corporate and private levels of debt, as well as the fragility of the credit-based international financial system, remain unanswered.
Many say the core issues leading up to the events of 2008-2009 have not really been addressed. Banks are steadier and the financial sector is ever more tightly controlled but government debt remains a true worry, as do low levels of corporate investment and productivity growth, particularly in Europe – where it is related to a high tax burden – and too much dependence on consumer growth.
The latter is fuelled by credit and low interest rates that make some feel unrealistically rich, drive prices up and feed spenders while punishing savers and investors.
It worked as part of financial repression in the wake of the sovereign debt crisis, but other than providing cheap capital injections for the larger corporations hasn’t done much to stimulate growth in real terms…
Written by Michel Cruz with contribution from the DM Properties Team