Beyond the profitability offered to investors, the residential park of the Costa del Sol infects the economy and local tourism. Both in the luxury home in Marbella and in other neighboring towns. That the high-standing real estate market acts as an economic engine in Spain is a reality. Not only because of the ability to attract millions of investments, but also because of the business activity and the creation of employment that it generates. This phenomenon is especially detected in the most dynamic residential parks. Markets such as the Costa del Sol in Malaga that has been the object of study by the Association of High Quality Housing Entrepreneurs.
Known as DOM3, this association brings together about thirty entrepreneurs linked to the building and architecture on the Malaga coast. Whose projects are developed in the residential market of Marbella, Estepona and Benahavís. This area is a magnificent indicator to check the good health of high-standing real estate investment. And its big drivers knowledgeable about luxury housing in Marbella and its neighboring towns. “An opportunity to discover the good progress of the most exclusive residential market,” says Luis Gualtieri. “In the process of revaluation of properties and rebound in rents.”
350 million euros of economic impact
Luxury housing in Marbella and its area of influence has moved just over 350 million euros in the last twelve months. This data, released by the DOM3 business association, demonstrates the momentum that the high standing exerts on the economy and employment. “Faced with the shortage of traditional industries, luxury residential tourism is a great source of wealth for the Costa del Sol,” says Laura Pou (president of DMO3). “Who comes to the Costa del Sol ends up repeating and many end up staying here.” In sectoral terms, “the construction and rehabilitation of high-end housing creates a lot of employment and helps the sustainability of the area,” adds Pou. “Both for the preservation of the balance of the area, and for the care of the environment and landscape.” In general, luxury housing in Marbella and its surroundings allows generating 4,000 direct and 12,000 indirect jobs. A job that is not always seasonal. Since more than 800 stable jobs are generated.
Luxury housing in Marbella and its surroundings
DOM3, which delivers an international architecture award every two years, has been able to verify the quality and exclusivity of the new residential projects on the Costa del Sol. Architecture studios from all over the world are approaching the coast of Malaga. Attracted not only by its beauty of the environment, but also by the great existing demand.
Marbella and its area of influence enjoy an excellent quality of life. Especially appreciated by tourists with high purchasing power. That is why the sector is getting involved in responding to a residential demand that does not stop. According to data from DOM3, the interest in the purchase of high-standing properties is 10% higher than in 2007. Before the crisis. A demand that grows at the same time as the requirements of a very select customer. It has a large portfolio of properties, from apartments with views valued at 1.5 million euros to luxury villas above 2 million.
The high standing doubles its price in Marbella
Although the Marbellí housing market is heterogeneous, there is no doubt that the segment is the protagonist. The activity of luxury housing in Marbella grows above the middle market. In fact, certain areas reserved for high standing have already doubled prices compared to 2011. The most negative year of the crisis. This data belongs to the ‘Marbella Real Estate Report 2018‘, prepared by Panorama Properties. Document that reflects the impact that the lack of supply has on the price increase of the most exclusive areas of Marbella.
An example: Properties sold for more than 4 million euros have doubled since 2017. Exceeding forty transactions.
In spite of everything, the luxury home in Marbella still does not reach the prices that were marked in 2006 or 2007. In fact, the most spectacular increases are concentrated in the Marbella Golden Mile. In addition to the urbanization Casablanca.
Areas where both the sale price and the rent rise significantly. To such an extent that rents in the most expensive areas rise at a rate of 8.58%. Raising the price for a rental apartment of about 80 m2 to € 1,752 / month. According to the latest Tecnitasa report.