If you think you need finance it would be worth a good talk to an advisor as criteria has changed hugely and continues to do so – this may affect your budget.
I agree with most of the postings above, its only going to get worse. I dont know where they got that nonsense about Marbella prices rising – on what was it based???
However, owners in Southern Spain are a mixed bunch. Some wont need to sell and will hold out for their price, others will need to and already their prices are at rock bottom – ie to pay back the mortgage and few costs. These properties wont be any cheaper unless they go via official auction – and half priced villas will not be seen on the open auction market!
So – keep an eye on things and if you see what you are after for the price its worth to you, then put in an offer 20% below that and negotiate. Hold cash in front of their noses and keep your steel
Good luck – its really hot today!!!