The last quarter of 2012 saw a positive end to the year with a flurry of British and other international buyers taking advantage of falling prices and a reduced VAT rate on new properties in Spain.
The higher end of the market also seems to have performed well and at the lower end of the market what are regarded as bargain prices are attracting buyers, especially those with cash as getting a mortgage in Spain is not easy.
Mortgage tax relief has been abolished and VAT on new homes goes up to 10% on 01 January. The temporary reduction of VAT to 4% has boosted the number of overseas buyers.
Foreign buyers have tended to dominate the market in 2012, mainly Belgian, French, Norwegian, Swedish, and a welcome resurgence of more British buyers over the last three months.
Another good piece of news in this part of Spain is the new Paramount Theme Park, in Murcia, with work due to start in January.
Marbella is still a very desirable area of choice for international buyers, considering its perfect location, at the southernmost tip of Europe therefore squeezing more sunshine hours and higher temperatures out of the entire year than the French or Italian Riviera ever will, not to mention direct year round flight connections to Northern Europe, Russia, North Africa and North America.