_Why go to a Marbella resort when you can have a Marbella home?
Marbella’s real estate market continues to evolve, diversify and mature. The area’s latest market cycle began in 2012 when prices and sales reached their market low. Since this time, average prices have accelerated 23% and sales are up 36%.
Incentives to move to Marbella:
1. Hotels like Four Seasons and W are investing by entering the Marbella market and we expect other high-end hotel brands to follow.
2. In April of this year Andalucía reduced the income tax rate and cut succession tax bills to just 1% for spouses and children.
3. Malaga Airport has direct flights to 148 airports including New York. New routes from Casablanca, Bordeaux and Muharraq (Bharain) started in 2019.
Further incentives includes citizenship: Launched in 2013, Spain operates a Golden Visa. In return for an investment of €500,000 in real estate a foreign buyer can obtain Spanish residency. The visa can be renewed every two years, after five years it is possible to gain permanent residency and after ten years, citizenship.
Which are Marbella’s Prime Markets and how to prices compare?
Prime areas across Marbella, Benahavís and Estepona include the beachfront, the Golden Mile and La Zagaleta but for those seeking greater value areas such as La Alquería, Atalaya, El Paraíso and the New Golden Mile are proving popular.
There is significant price variation across Marbella’s prime markets – The Golden Mile and Sierra Blanca command €6,000 per sq m to €12,000 per sq m whilst Marbella East and the new Golden Mile stretching towards Estepona see values closer to €3,000 to €4,000 per sq m.
How is the New Homes market performing?
While Marbella solves its planning issues Benahavís, Estepona, Ojén and Mijas have become the focus of the coast’s new development.
In July 2018, the Town Hall passed an amendment to the 1986 plan, which means the backlog of building licenses is being addressed and progress, after years of delay, is finally being made.
There is strong demand for new-build contemporary-designed homes but the new homes sector is at a crossroads; land prices and construction costs have increased since their low in 2012 and this is putting pressure on developers margins.
What’s the outlook for the market?
Commercially, Marbella is on a firm footing, the local economy is expanding and the city is embarking on a programme of infrastructural improvements and public works.
Although prices are still rising, it is likely we will enter a period of stabilisation as some buyers adopt a ‘wait-and-see’ approach ahead of the next Brexit deadline in October. However, we may also see some speculative investors who look to take advantage of the current political paralysis over the coming months, confident the market will gain traction in 2020.
So who’s buying in Marbella?
Nationally, the number of homes purchased by overseas buyers reached 65,400 in 2018, up from 46,700 in 2015.
UK buyers remain the single largest group of overseas buyers in Spain and their market share (as a percentage of all foreign purchases) has increased from 14.8% in 2013 to 16.6% in 2018. In Marbella, it is a different story with UK buyers reducing slightly in number but increased demand from Scandinavian, Belgian, Dutch, French and Middle Eastern purchasers has offset this decline.
Across Spain, US buyers have the deepest pockets, according to the latest data from the College of Notaries, spending €2,426 per square metre on average, followed by the Swedes (€2,423 per sq m) and Germans (€2,272 per sq m).
Knight Frank Featured Marbella Properties