Developments in the property market in Marbella

Hermosas propiedades en Marbella

We all know that there is a correlation between price, product and demand, and is the property market in Malaga. Now that we’re in the seventh decade since people buy vacation homes, second homes or permanent residences in this area, the local real estate market is more mature and stable than ever. Marbella will always be a growth and market opportunities, and years of rapid expansion and generally precipitated by external growth cycles seem to fall over.

On the one hand, land for new developments they are now rare, replace the ups and downs of a young pioneer and market more stability, since it has been established. In fact, if Spain is its brand, its natural beauty and quality of its facilities attractiveness only grow more and more over time.

In a market like this amount is more than ever substituted by quality, price (per square meter) grow and remodeling becomes the natural way of creating a new, modern complex. This process is already underway with the reform and modernization of the houses in the best locations, and eventually, over time this will lead to the revitalization of most of the urban landscape in this zone.

How prices stimulate demand and supply on the market

Once recovered sustainable growth, the process described above will see a strong demand due to the limited expansion of supply and prices of properties in Marbella will be pushed up.

However, before this can happen, the region needs to resume growth, which began in 2012, when the price has played a central role. You may have noticed that the innate demand of this area, properties and lifestyle offering, sometimes may vary slightly, but essentially has a consistency that comes from an environment and a difficult climate to improve in Europe and the market in Andalucia. One of the most recognized real estate in Spain as it is Panda Estates.

With personal contacts and, of course, the Internet, many potential buyers of real estate in Marbella were attracted not only by the charm of the region, but also property prices that had fallen to levels that began to be very attractive. This process contributed to a new interest to the market, but even more important is the way the sales growth falling prices stopped. Feeling that the market had bottomed out and prices do not drop, many potential buyers and investors decided to act quickly.

how it has been the business of property in 2016?

As a result, 2013 saw the safe return of the real estate business in Marbella, which previously have absorbed most of unsold new promotions. Prices should remain relatively stable for some time in the near future, but with implementation and execution of the first series of new buildings since the beginning of the ongoing financial crisis, expectations are that prices will begin to rise again soon. Thus, with attractive prices, low interest rates, the recovery in demand and a product (properties) with a constant call brought the property market in Marbella in an exciting phase that can still be considered a buyer’s market – with obvious signs of growth.

More than ten years ago, Marbella became one of the cities most noted for the large volume of real estate transactions that occurred in the city, and somewhat surprisingly, in 2015, the Malaga city remains one of the most notable for the number of housing transactions that occur because the number of operations reached an increase of 23% in 2015.

Marbella remains one of the most important towns on the Costa del Sol, known in Europe for its excellent climate, has become the ideal place to purchase luxury housing by citizens with high purchasing power, who see this destination as an ideal place to live for its high standard of living place, good access to the capital and find yourself in an idyllic location. For more information we invite you to read our article about to how is the Marbella real estate market in 2016.

The influence it has had on the Malaga coast?

Marbella remains one of the most important towns on the Costa del Sol, known in Europe for its excellent climate, has become the ideal place to purchase luxury housing by citizens with high purchasing power, who see this destination as an ideal place to live for its high standard of living place, good access to the capital and find yourself in an idyllic location.

The growth of the city of Marbella has not been an isolated case in the Costa del Sol, other coastal towns in the area have seen as a significant increase in the number of real estate transactions that are taking place in them, as is the if Mijas, Estepona, Benalmádena …

Marbella remains one of the most attractive cities for foreign investors, especially for many customers who come from the wealthiest countries in Europe, such as UK, Scandinavia and the Netherlands. New trends are observed in the profile of foreign buyers, who increasingly are younger and prioritize style, quality and design when buying a home.

In addition to investment by foreign investors, also it highlights the growing interest from domestic buyers, who become interested in the Costa del Sol as a destination where to make their investments, especially focus on the real estate market high-end or luxury, which is increasingly important for domestic investors, a trend that until recently was completely different.

Many buyers purchase their new home as a first home, although there is also a not inconsiderable number who acquires with the intention of having it as a second home or to rent it later, conceiving the home itself as an interesting investment and they can get a good revenue. If you think it’s your chance to invest in property you’ve dreamed of having in this zone, do not forget to contact one of the most important agent of real estate Ignacio Acosta Sorge.

Many other Spanish cities remain center of special interest from foreign investors, such as some of the classics are those of the Costa Brava, like Barcelona or Tarragona, but also Ibiza or Valencia. In the case of Barcelona city remains the leading foreign investment, due to its strategic location between Spain and France, and for its unique location in the Mediterranean Sea.

El crecimiento de Marbella de los últimos años
El crecimiento de Marbella de los últimos años

The trend will continue in 2016?

2016 stands as the year where you can produce the final takeoff of the Spanish housing market, since between 2008 to 2014/15, the housing market has met with a very complicated situation, in which many estate agents have closed and wherein the number of empty homes was authentic record. From now on, it is expected that this situation will adapt to the needs of domestic but still demand, external demand will continue to have high relevance, especially in coastal cities. If you want to know about the properties in Costa del Sol available in the market.

Severely affected by the debt crisis, real estate prices Spain has seen falling between 30 and 40% since 2008. From 2100 euros per square meter on average, fell to 1,470 euros in 2013, according to the Xerfi institute economic studies. This allows a very good deal. Therefore, a villa of 500 m2 with sea views, on a plot of 1,800 m2, in the town of Alella, north of Barcelona, was recently acquired 2.5 million euros by the French. By way of comparison, the same house in Saint Paul de Vence (near Nice) would cost between 5 and 7 million, said Laurent Demeure.

“The luxury market, precursor, is being strongly starts and all the Spanish building will be shot”, he says. According to him, the high-end price have stabilized for six months to a marginal increase in international locations such as Ibiza, Marbella and especially Barcelona and its region are becoming increasingly popular. Although the French are positioned within this market, and in terms of family residential, with prices still declining slightly, so this should soon recover, says the president of the real estate agency. It is offering very good investment opportunities.

Luxury properties and an ideal climate the perfect combination for an investment

In fact, the real estate crisis in the Marbella area, has finally come to an end, at least in terms of sales volume, as it has steadily increased over the past three years. However, the crisis is not yet fully completed in the price if you are a seller: these are still between 15 and 25% below peak levels, even in the most consolidated areas. Prices are lower in the less consolidated areas and the higher cost of the market where good opportunities can still be found for a time segment. We must consider the fact that the properties costing more than € 1.5 – € 2 million if sold, not always replaced by similarly priced properties, indicating a shortage of high-end properties at the best price and the luxurious properties in Marbella.

This, coupled with the growing demand, has led many owners to increase their asking price, unheard of in recent years. Since the beginning of 2015, our agency received weekly three or four price increases, with the price reduction by homeowners who finally have realized that the starting price of its properties were too high, to despite the revival of the market.

Both the Marbella property market that the economy is not strictly dependent on the national economy. At least 85% of buyers of real estate in this area come from outside Spain, especially in other European countries, where economies are relatively strong compared with that of Spain, where his business prosper. While Spanish buyers were largely absent due to the deep economic crisis in the country, the foreign market than offset this circumstance.

In tourist cities, this is an irrevocable fact that tourism is the main source of quality customers for the real estate sector.

The factors that make Marbella best in the market of properties in southern Spain

1. Marbella is an active local market, but also a regional, national and international markets, especially

2. Recognized worldwide as “the quality of Destiny” Marbella has better addressed the global crisis affecting Spain. The fall in prices has been less intense and real estate activity. Quality destinations attract discerning visitors.

3. Spain hosted 7.64 million tourists in August 2011. A record! Now there is a direct relationship between the number of tourists and the number of real estate sales.

4. Marbella is a city that attracts by its “glamor” also offers an excellent health service, fantastic weather for a tourist season d’avoir 12 months of the year, many cultural and sports activities and through honest and effective local government it is one of the cleanest and safest cities on the Mediterranean coast

5. There are fewer new properties in this area and elsewhere. The Municipal General Plan, renovated in 2010, had not been updated for 24 years. So there was very little land available for building; which it has frozen activity in the construction sector.

Marbella is unique in Spain and Europe

If this southernmost point of Europe offers the best climate in the whole Mediterranean basin. Marbella has received development policies quite sensible started by their first architects and developers there more than 60 years, which limits the volume and density of construction at a relatively low level compared to the concrete jungles that exist in most other coastal tourist areas of Spain according to the digital medium lacostamarbella.com

These factors, along with excellent municipal services and security, its superb infrastructure, over 40 golf courses within 20 minutes drive, tennis clubs, and facilities of many other sports of all kinds, 3 marinas, and wonderful restaurants, combine to make Marbella unique tourist destination in the Mediterranean basin, with an active 12-month season, the high season in summer, the average season in spring and autumn and winter low season.

Drafted by: AV

Word count: 2029

Main sources:

theolivepress.es/spain-news/2015/10/15/a-tale-of-two-spanish-property-markets/

oryxworldportfolio.com/marbella-property-market-picks-up-pace-after-financial-crisis/

lacostamarbella.com/37-marbella-property-market-outlook-first-quarter-2016

rrmarbella.com/news/off-plan-marbella/

Secondary sources:

lucasfox.com/news-and-press/2015/11/26/stephen-lahiri-shares-his-overview-of-the-property-market-in-marbella-in-2015/

slideshare.net/FrankWalsh4/marbella-property-market-report-2016

blog.spanishhotproperties.co.uk/

fabps.com/marbella-property-market-surrounding-areas/

 

Contribution to reader: This article provides users with relevant information regarding the trend of the property market in the southern Spain.

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