The luxury real estate sector in Marbella is at historical sales levels, according to Panorama.
The report carried out by the real estate agency confirms that the number of purchases made by its agency in the first half of 2021 has increased by 68% compared to the same period in 2019.
According to the report on the Marbella property market 2021, prepared by Christopher Clover, Managing Director of the real estate agency Panorama Properties, the Marbella property market is very active.
In fact, the volume of home sales since the lockdown was lifted has been higher than expected. Clover refers to the statistics for the first quarter of 2021 for the municipalities of Marbella, Estepona and Benahavís, indicating an increase of 9.2% in sales compared to the same period of 2020, but Marbella especially stands out with an increase of 22%.
The increase in inquiries from potential buyers registered by Panorama in the first half of 2021, which increased by 154.4% compared to the first half of 2019, has been a direct consequence of the pandemic. Likewise, the number of sales (formalized and in the process of being formalized) registered in the same period increased by 68%.
Panorama predicts that home prices, despite having adjusted during the pandemic and remaining stable at the moment, will gradually begin to rise. The 8.56% increase in construction costs recorded from the end of the first quarter of 2020 to the end of the first quarter of 2021, according to the Appraisal Society, are also contributing to this rise.
Nationality of buyers.
Regarding the nationality of the buyers, 90% of the buyers in the luxury segment are foreigners. In 2020, the three main nationalities of foreign buyers in the province of Malaga were British (19%), Swedes (13%) and Belgians (9%). Despite Brexit and against all odds, the British have been and continue to be the foreign nationality that invests the most in the purchase of real estate in Spain since the late 1970s.
There is also a new buyer profile in Marbella, the so-called “millennials”, with high purchasing power, who choose homes with a high level of privacy and the best qualities.
There are numerous factors that also contribute to the Marbella area continuing to consolidate as an increasingly active and solid market: the reduction of the Property Transfer Tax applied by the Andalusian Government, the mortgage interest rates at historical lows and the advance of the new General Urban Planning Plan (PGOU) towards its approval. We can affirm that the luxury real estate market in Marbella is more active than ever.
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