A Q&A With Roberto Campolucci-Bordi On His Views Of The Market And What Lies Ahead In 2015

Roberto, as we head into 2015, what is Asset Folio's view of the market?

“2015 looks to be a year of great opportunity. The instability of other markets are proving advantageous for Marbella’s property sector as more and more investors look to move their money into areas where there is low volatility and high scope for growth. If you look at today's market it's not too dissimilar to where is was in early 2000. People tend to forget that real estate markets move in cycles and once it starts it gathers momentum very quickly.

This current cycle was triggered in 2013 when it hit the media that some of the big investment funds had started to buy distressed real estate assets from the Spanish banks. We tend to see cycles last 7 or 8 years and the first wave tend to be investor clients looking to exit when they see the market peaking, the second wave comes from the retail buyer driven by the availability of mortgage products.

As we enter 2015 we feel that the we are still in the first phase but are seeing more and more retail buyers emerge.”

Is the market is picking up?

“The market actually picked up 12 months ago. What we are seeing now is it gaining enough momentum for it to be visible - new real estate offices opening up, more and more construction sites and of course the media’s uptake on it all.”

When do you know that the market has bottomed out?

“The answer is that you don't. You never know when the market has bottomed out until it is on its way back up and only then can you point to it bottoming out at a certain point in time.”

What are the main issues in the current market?

“One of the big issues is perception versus reality.

Many investors come expecting for every property to be massively under market value, and/or open to bids of up to 50% of the list price. The reality is that most of these were purchased back in 2013 and were part of larger debt portfolios acquired by larger investment groups/funds. Good properties in good locations were few and far between and sold by owners under pressure from the banks and not by the banks themselves. By 2014 the market started correcting itself, prices have now been set and rarely will a price be negotiated less than 10% or 15% of asking.”

How does Asset Folio determine whether a property is good value or not?

We carry out a price/m2 analysis of the property and compare it to others in the same development and surrounding area and also to those in similar developments in other areas. We now have a comprehensive set of price/m2 data for all the areas in the Golden Triangle and for most of the developments. When a property comes our way we can determine if it is expensive, market value or if it’s an out-and-out bargain.

How does Asset Folio go about finding its clients?

Our clients come mainly through our strategic partnerships and referral business from current clients.

And what criteria do you look at when qualifying your clients?

It comes down to asking three questions. Who is buying? What are their reasons for buying? What are thy looking for?

There are then a few fundamental things that we need to know. First we start with their budget and find out where they are comfortable, if they require finance we discuss the options available to them. Then we start looking at location criteria and then finally property criteria. After this we can start the processes of viewing properties, this can either be done remotely over email at first and then we always recommend a client come down for a minimum of 3 days to experience the area and see for themselves the properties.

How do your international clients view Marbella's image?

It depends on who you are marketing to. We mainly deal with a Northern European, Scandinavian and Middle Eastern clientele for whom Marbella is no longer just a holiday destination. For them Marbella is becoming a place to relocate, where they are looking to spend a considerable part of their year.

Clients are starting to see stability in Marbella. You have to ask yourself where else in the world has what Marbella has right now?

Opportunity: There is fantastic investment growth opportunity in real estate where prices are relatively low compared to other key destinations and most importantly are on the rise where most places seem to be flattening. Choice: It is viable for all levels of investor to enter the market with a range of products to suit most budgets from apartments for circa €150,000 to villas topping €50m. Climate: Marbella remains one of the warmest places in Europe with favourable climate throughout the year. It has excellent transport links and recent improvements to Malaga airport have seen direct flights coming from all over the world including New York and Istanbul and soon Dubai.

What does this mean for Asset Folio?

This means we are expanding to take advantage of the incredible opportunity we are now being presented. At the end of this month we are moving into our newly renovated 250m2 (2,690ft2) offices and will have the space to expand our sales team to 12.

We have been working on entering the short term luxury rental space and are finalising a dedicated website to host a fantastic selection of properties we have signed up. Our goal is to provide the best selection of properties and as with our sales department an unparalleled service to both property owner and the end user client.

Furthermore with the level of interest in the Marbella real estate market we will be launching a revolutionary affiliate program, by the end of this year we anticipate this being our most successful source of new business.