Marbella Real Estate Market Trend.
The data for the real estate market in Marbella in 2022 have been striking so far, the sale price has increased by up to 40% in Puente Romano, the Golden Mile by more than 30%, being the most demanded first line of beach in the ultra-luxury sector. Data from Inmobalia, Idealista, LuxuryForSale.Properties as well as national statistics from Ine and registradores support this data.
Despite the murmurs of a decline in the worldwide real estate industry, all evidence suggests that the affluent housing market in Marbella will experience only expansion throughout 2023.
“The buying power of LuxuryForSale.Properties customers is higher and price negotiation is lower, which makes location more important. All Marbella´s nearby areas follow the same pattern. There is a very high demand for housing and a reduced supply of properties”. David Fernandez, LuxuryForSale.Properties CEO.
What makes Marbella an attractive location?
Marbella has long been recognized as a unique destination in Spain for luxury and leisure, with a rich history dating back to the 1950s when Europe’s aristocracy discovered the area thanks to Prince Alfonso von Hohenlohe and his creation of the legendary Marbella Club. Since then, the region has become a sought-after destination for luxurious vacations and real estate investments. Over the decades, Marbella has continued to grow and expand its 5-star facilities, offering beautiful villas and elegant apartments nestled in exuberant gardens with refreshing pools. In the 1970s, Puerto Banús added luxury yachting and hedonistic nightlife, further cementing Marbella’s reputation as a premier destination for holidays and second homes. Despite temporary dips coinciding with world economic trends, the trend for northern Europeans and Spaniards buying second homes in Marbella has continued to grow over the years steadily.
In addition to all these factors, the exclusive microclimate of Marbella, protected by the nearby Sierra Blanca Mountains, contributes to the area’s appeal, offering approximately 300 sunny days a year. This is another reason Marbella is consistently favored over other luxurious Spanish destinations and why the demand for properties in the area remains high despite the high price per square meter.
Marbella Property Prices.
The average property price in Marbella is around 4,500€/m2, making it the third most expensive location for property purchase in Spain.
Benahavis, one of the municipalities forming the Golden Triangle with Marbella and Estepona, is the most expensive area in terms of property prices, with an average of 5,410€/m2. Estepona, on the other hand, has an average price of 2,995€/m2.
Due to its abundance of modern properties and renovated Andalusian gems, luxury property buyers on the coast are currently drawn to this area. Despite this, Marbella continues to sell more properties than Estepona and Benahavis.
Marbella’s sophisticated residential areas of Sierra Blanca, and Cascada de Camojan at the foot of La Concha mountain are the most expensive neighborhoods for property purchase in Marbella whith the higher prices per square meter and some of Marbella’s most coveted mansions in terms of prices per m2 are located.
Marbella and Spain are enjoying contemporary lifestyles of the 21st century.
Several factors have made the recent surge of relocations possible, including the Golden Visa program that Spain introduced in 2013. This program grants residency to individuals who invest more than 500,000 € in the property.
The trend for remote working, which has become increasingly popular since the lockdowns, has prompted many people and families to reassess their lifestyles and consider relocating abroad or working remotely in countries with appealing lifestyles, such as Spain.
Marbella is witnessing the construction of numerous new developments specifically designed to cater to remote working professionals and entrepreneurs. These developments typically feature apartment complexes with co-working spaces, gyms, and pools, making them particularly attractive to those with geographical flexibility. Moreover, Digital Nomads in Spain are benefited from the new visa that was introduced in March 2023, providing temporary residency to individuals seeking to work remotely for periods exceeding 90 days.
The exceptional quality of the available properties is one of the primary reasons for the current surge in luxury real estate in Marbella. Developers are acutely aware of increasingly discerning buyers, building properties using only the finest materials and adhering to high specifications. These properties boast clever utilization of space, seamless integration of indoor and outdoor living areas, lush landscaping, and refreshing water features. They are also equipped with a range of creature comforts such as air-conditioning, underfloor heating, walk-in wardrobes, and underground parking, all of which have become standard amenities.
The upward trend of the high-end real estate market in Marbella continues to climb.
The past four years have witnessed a threefold increase in the purchases of residences exceeding 3.5 million euros, while villas priced between 10 and 20 million euros are becoming more prevalent, and newly constructed properties are selling out within months of being offered off-plan. In addition, the demand for homes priced between 1 and 2 million euros surpasses the supply, cementing Marbella’s status as a destination for deluxe housing.
For a considerable time, Marbella has been recognized as the destination of choice for the affluent international elite, prosperous retirees, and those seeking a relaxed Andalusian way of life enticed by the warm Mediterranean coasts and golf courses.
Over the past ten years, there has been a significant shift in the profile of property purchasers in Marbella. The current tendency is that more youthful, fashionable, and affluent individuals are buying properties in Marbella, with the average buyers in their early forties.
Many people and families, who are now liberated by the flexibility of remote work, are gravitating towards Marbella due to the recent surge in gorgeous, contemporary properties ideally suited to a modern Mediterranean way of life. These homes are created to optimize outdoor living, boasting stylish designs, ample natural light, and seamlessly blending into the surroundings with abundant green spaces, offering an al fresco lifestyle.
For the past five years, property prices have been consistently increasing. More individuals relocating to the region has resulted in a snowball effect, leading to more investments in the area. Presently, around 175 new construction projects are underway on the Costa del Sol, with the more lavish properties concentrated in the Marbella region.
In addition to the significant investment being poured into luxury housing, Marbella is also receiving billions of euros for the development of infrastructure, hotels, schools, health and medical centers, leisure activities, shops, restaurants, and other supporting services businesses. As a result, Marbella has now gained international recognition as a top-quality destination.
The newest choices available for luxurious villas in Marbella.
An exclusive Marbella villa goes beyond the definition of a mere dwelling. It represents the pinnacle of a lavish lifestyle, boasting many plentiful features and a stunning design, which only continues to expand.
Until recently, these features were mainly limited to luxurious materials and finishes, generous dimensions, grandiose kitchens equipped to serve large groups of individuals, garages with enough space for multiple cars, expansive terraces overlooking gardens and swimming pools, wine cellars, recreational areas, and possibly even a personal fitness center.
There has been a shift due to technological advancements, engineering, and construction methods. As a result, a plethora of new opportunities are emerging. As expected, developers of opulent villas in Marbella swiftly embrace and implement these innovations.
Fresh trends of opulence in Marbella
Recently, we have witnessed the integration of home cinemas with lavish entertainment zones, featuring not only seating areas for movie viewing but also stylishly designed lounges, professional bars, and gaming tables. This trend departs from the previous concept of dedicating the cinema room solely to watching films.
In numerous instances, these areas can be interconnected with the state-of-the-art private gyms and spas that are now common in opulent Marbella villas. These spas boast indoor heated pools, fragrant showers, changing rooms, saunas, steam rooms, hot and cold baths, and even therapy rooms, which can compete with the most extravagant resort hotels.
Apart from expansive open-plan interiors that extend onto opulent terraces and poolside bars with alfresco kitchens and seating areas, several Marbella villas now feature rooftop entertainment zones. These areas offer opportunities to unwind, cook, dine, swim, soak in the Jacuzzi, and even socialize by the bar while admiring breathtaking sea views.
Increasingly, garden and terrace spaces will include intimate sunken seating areas centered around a biogas fire, a contemporary variation of the traditional fireplace typically found indoors. These spaces create a sophisticated and convivial atmosphere for hosting guests. In addition, the latest modern kitchens are seamlessly integrated into living rooms, with their hardworking culinary counterparts discreetly tucked away in functional laundry zones.
Luxury residential living continuously evolves amid a world saturated with cutting-edge technological advancements. LuxuryForSale.Properties Realty specializes in exquisite Marbella homes, and we invite you to contact us today to experience firsthand the latest trends and features in abundant living.
What is the nationality of property buyers in Marbella?
Marbella stands out as one of Europe’s most thriving multi-national communities, with a resident population of 150,000 that swells to at least double during the summer months. The town hall has registered 140 nationalities, making up at least 30 percent of the population.
Foreign buyers are currently purchasing approximately 85 percent of the properties in Marbella, indicating a widespread perception that the real estate here is a lucrative investment.
Despite Brexit, British buyers remained the top purchasers, followed closely by the Swedes and the Belgians. Other nationalities contributing to the property buying mix include the Dutch, French, Saudi Arabians, Germans, Polish, and, more recently, buyers from the US.
The rise in wealth, the emergence of new millionaires, and low-interest rates on financing have all contributed to the boom in luxury property sales. However, it should be noted that the majority of luxury property transactions are completed without the need for financing.
An emerging trend is that buyers invest in properties based on video tours and virtual walk-throughs of selected properties without needing an in-person visit.
Online sales are a fact. This year, we have had many requests for properties through the world web wide. Social media plays an important role. Facetime, Online meetings, whatsapp, videos, tour guides and other new technologies have been decisive in the purchasing decision of our customers. “Our discerning buyers increasingly tend to own multiple properties around the world and are on the move. However, they are also looking to establish their family in Marbella, where its international public schools have been ranked among the best in Europe.
A Good Investment.
Apart from the allure of the Marbella resort itself, there exist several reasons why people choose to invest in property in this area. Here are a few examples:
- Marbella is becoming a popular destination for entrepreneurs and remote workers, as evidenced by its ranking as the 6th city in the province for new company creation in 2022.
- Significantly, the Regional Government of Andalucía abolished the wealth tax in 2022 and lowered tax and stamp duty on property purchases, an excellent incentive for potential buyers.
- Urban planning in Marbella is highly regulated and aimed at providing high-quality properties. Spanish legislation protects buyers of new builds, requiring developers to guarantee a full refund to purchasers if the villa or complex they buy is not completed.
- Properties at various price points have great potential for rental income in Marbella. Even luxury villas in prime locations can generate up to 40,000€/week during the peak summer season.
- The local Town Hall and Regional Government are heavily investing in the area, with millions of euros allocated to enhance Marbella’s brand through improvements to beaches, infrastructure, cultural and sporting events, and the creation of green zones, parks, and gardens.
There is good reason for the high confidence in the area. If you are considering moving to Marbella or investing in a property for vacation or rental purposes, we would be delighted to assist you in finding the perfect property.
LuxuryForSale.Properties Real Estate.
At LuxuryForSale.Properties Real Estate, experts offers a comprehensive range of services to their database of eligible buyers, including property valuation, house sales, property purchases, and private sales. Entrusting us with your real estate aspirations guarantees that you will discover the property of your dreams in collaboration with their team.
The nationality of our clients has also changed. We have a younger clientele, more American and scandinavians nationalities, as well as Eastern European countries. English, French, and Arab customers continued to increase. Our approachable and knowledgeable real estate managers are available to assist you in finding your ideal property, contact us discuss your needs.