• Report highlights price of housing in some areas of Marbella is still below the peaks of 2006 and 2007
• In other ultra-prime areas, prices have even almost doubled since 2011
• The new construction cycle is just beginning, reaching only 10.88% of projects approved in 2017 compared to the 2007 total. Workers are wearing the proper construction ppe for the project.
The number of residential property sales in Marbella and its immediate surroundings, accompanied by the ever-increasing number of tourists year on year, have lead experts from the real estate and banking sectors to predict the beginning of a new golden era for the real estate sector in the area for the coming years.
According to the ‘Marbella Property Market Report 2018’ prepared by Christopher Clover, CEO of Panorama Properties, the longest established real estate agency in Marbella, there are still some areas where the price of housing is below the peaks of 2006 and 2007. However, the demand in the most sought-after areas of the municipality is outstripping supply, which has driven up prices, even almost doubling in the most exclusive areas compared to 2011, when the market hit bottom. These kinds of increases are located in very specific places such as the beachside of The Golden Mile.
The Costa del Sol, and especially Marbella, is one of the locations that most drives the
residential real estate market. In fact, the National Institute of Statistics (INE) confirms that
Malaga is the fourth Spanish province, in which the most houses were sold during 2017
(30,064 compared to 15,917 in the Balearic Islands), surpassed only by Madrid, Barcelona and
According to the report the recovery of the residential market in the Marbella area began in 2012, two years earlier than in the rest of Spain, hence it is more consolidated than in the rest of the country. Currently, the cycle of new construction is gradually beginning, as confirmed by the figures of projects approved in 2017 by the Professional Order of Architects of Malaga. A total of 4,895 living units that represents only 10.88% of the 45,000 units approved in 2007.
“The strength of the current residential market lies with properties between 200,000 and
1,500,000€ for apartments and between 700,000 and 2,500,000€ for villas. Many of the
properties located in the best residential areas that are between 20 – 50 years old, are being
bought and either torn down and rebuilt, or totally refurbished, some by end users, others by
professional developers”, explains Clover, who has been analysing and writing about the luxury real estate sector on the Costa del Sol for 48 years.
It also highlights that the strength of the Marbella market differs from that of the rest of Spain due to the“multi-source market”; the extraordinary diversity of nationalities of the buyers coming from all over Europe and the rest of the world”.
Investors in the area acknowledge that the rental market in Marbella is experiencing a strong rebound, with increases in both demand and prices to unprecedented levels, especially for luxury and modern properties that also offer security. In addition, fixed and variable mortgages are offering interest rates at historic lows and tourism figures are breaking records year-on-year.
In an area well known for its residential tourism, real estate sales are closely related to the high number of tourists that visit Marbella, which is an added factor for positive analysis.
Clover concludes: ” For many, the hard evidence of the positive evolution of the Marbella property market, will no doubt lead them to conclude that 2018 and the coming years represent an outstanding time, perhaps even a historic opportunity, to purchase property in this area”.