Marbella property prices could be set to rise, as favourable conditions make the area an investment hotspot.

Sales figures are already up on 2011, the full-rate (ten per cent) VAT on new builds is expected to return, and developers are considering price hikes or selling off-plan for the first time in years.

According to Spanish Hot Properties, this may result in 2012 being the last year of price falls in Marbella.

The developer of a luxury golf resort close to Marbella has already announced he will increase prices by eight per cent from January 1st 2013, after selling out all but 25 of his 267 unit project at 40 per cent off peak prices.

Nick Stuart, director of Spanish Hot Properties, explained: "The Belgians, Dutch, Russians, Scandinavians, are hot on Marbella as they realise that prices are at their lowest and represent incredible value for money – even on a global scale."

The Spanish property market is currently being driven by the country's thriving tourism industry, according to the Global Property Guide.

Marc Pritchard, sales and marketing director at Taylor Wimpey de Espana, noted a 22 per cent increase in the number of real estate transactions in September, compared to the same period in 2011.



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