Buying property in another country can see like a daunting proposition, but we’re here to help if you are considering purchasing a home in Marbella, Spain. Marbella, a coastal community located in the province of Malaga, enjoys an average of 320 days of sunshine a year and boasts some of the best luxury golf, nightlife, family leisure, shopping and cultural activities on the Costa del Sol. Our real estate market guide for Marbella offers some points for consideration if you are considering the purchase of a second home in this sophisticated and sunny enclave in 2018.
The Marbella real estate market is picking up
The Marbella housing market continues to show a healthy uptick. Whilst the full dataset from 2017 has not yet been released, statistics the Spanish Ministry of Public Works indicate that in the third quarter of 2017, residential home sales were 10% higher than in the same quarter of 2016. It is likely that the final results will show a moderate increase in Marbella residential property sales year-over-year, and that this trend will continue in 2018.
Residential property prices in Marbella and surrounding Malaga are increasing, albeit moderately
In Marbella’s surrounding province of Malaga, price per square metre is on the rise, but still lower than during the property boom years of 2004 – 2010, according to Tinsa, a group of independent real estate market analysts:
The price in Euros per square metre has increased year-over-year (Q4 2016 versus Q4 2017) 3.9% in the area. We expect Marbella property prices to continue to increase during 2018, consistent with the rebounding economy and the popularity of Marbella as a choice destination for purchase of a holiday home in southern Spain.
Foreign investment in Spanish residential and holiday real estate continues
Non-Spanish real estate investors continue to purchase homes in Marbella, Malaga and Spain. In the first half of 2017 alone, foreign funds and foreign buyers invested 888 million Euros in the purchase of Spanish homes, far surpassing the total amount of 330 million Euros in 2016.
The Spanish National Institute of Statistics (INE) offers data on the number of foreign and Spanish residents in Malaga, and the most recent data indicates that 24% percent of Marbella’s residents are nationals from other countries. According to the Spanish Association of Land Registrars, in the province of Malaga, 30% of properties were purchased by foreigners in Q3 of 2017.
Whilst there has been a slight cooling off period for some British investors and home buyers in view of Brexit uncertainty, there continues to be significant activity from British nationals, as well increasing real estate investment on the part of citizens from other northern EU countries, Russia and the Middle East. This is reflected in the general population of Malaga, where the latest data from the Spanish Ministry of Employment and Social Security, indicates that 73% of foreign nationals who maintain residency hail from EU countries. For settling in Spain, Malaga and Marbella are particularly popular among British, Danish, German, Italian, Irish, French, Swedish, Norwegian, Saudi and UAE nationals.
There will be new residential housing opportunities in 2018 and beyond
According to data from OMAU, the Urban Environment Observatory of Malaga, the last trimester of 2017 saw 26% more residential construction permits in the province than during all of 2016. This is a relief to those looking to purchase, as the real estate offer has always been limited in Marbella with demand generally outstripping availability.
However, the current levels of new construction greenlighted projects are only about 10% of the total housing construction authorisations issued from 2004 – 2006. In other words, whilst it is easier to find new-build residential homes, the amount of new housing much is currently more in line with the sustainable growth ideals needed to maintain the quality of life Marbella is famous for.
Looking ahead: Marbella Real Estate Market outlook is positive
With over 70 golf courses, sun-kissed beaches, the fabled Golden Mile, and well known part-time residents and holiday-makers such as Wayne Rooney, Michelle Obama, George Clooney or the King of Saudi Arabia Salman Bin Abdelaziz, Marbella continues to be a prime destination for jetsetters and those seeking the finest of Andalusian hospitality and culture. Marbella’s history as an exclusive holiday residence destination is a prime factor in its continued future success as one of the best real estate investments in Spain and an ideal spot for real estate investment, retirement or holiday living.
If you are looking for more English language resources on the Spanish housing market, consider checking out:
Association of Land Registrars Guide to Property Purchase in Spain: This helpful guide put together by Registradores de España in conjunction with RICS and the Association of International Property Professionals (AIPP) is a great starting point for familiarising yourself with the real estate processes of Spain.
Greenlife Estates Blog: Whether it’s learning more about the Marbella real estate market, the details of purchasing a home in Marbella, or the role of the Spanish notary, our blog covers a variety of topics for homebuyers on the Costa del Sol.
E&G Solicitors: with helpful information on the legal issues involved in buying property and specific articles on issues such as buying a home after Brexit, this site is an excellent resource.
Kyero: This data portal offers the latest property and housing market statistics for Spain. It’s updated constantly and searchable by region, Kyero is also available in German, Dutch, French, Swedish, Norwegian, Finnish, Danish, Italian and Chinese. There is specific housing data for Marbella as well.