What you need to know before investing in Marbella real estate
With economic uncertainty affecting numerous parts of the EU, choosing to invest in a holiday home or rental property may feel riskier than it did just a few years ago. If you’re looking to invest somewhere that offers sun, sea and sand, Marbella has always been a safe bet – but is it still?
What do you get with a move to Marbella?
The appeal of Marbella has always been about leading a luxurious lifestyle; frequenting boats, boutiques, bars and beaches is part of everyday life. Developers are well aware of this, designing contemporary villas and penthouses that, although not without a Spanish style influence, offer every modern comfort imaginable.
Expect conscientious design inside and out, with beautiful architecture reflected in landscaped gardens, expansive terraces and bespoke swimming pools. Spacious interiors are planned and completed to a high standard, providing comfortable accommodation for families and their guests. Newer homes tend to keep up with technology advances, so a recently-built property will often feature solar power, fully-equipped kitchens and smart features in every room.
Where brand-new homes are not available, there is a culture of upgrading and modernising older properties, so finding a local expert to renovate an existing building is never a problem.
How has Brexit affected the market?
The uncertain economic climate has certainly made property investors more cautious, and the number of British buyers did dip during 2016 (although numbers have mostly recovered). Buyers are also taking longer to deliberate a potential purchase, weighing up their options.
However, according to this property market report, there are several factors contributing to a favourable economy in the area for the foreseeable future. These include promising GDP growth, an increasing number of tourists, declining unemployment and interest rates being at a record low.
Where to move to in Marbella?
It should come as no surprise that the property hotspots are along the Golden Mile, particularly along its western reaches of Puento Romano, moving into Puerto Banus. Here, beach-front apartments command multimillion-euro price tags and villas are correspondingly higher.
This consistently-high demand for prime Marbella real estate means that many buyers are choosing to look in the neighbouring communities of Benahavis and Estepona to get a better deal. Although they might not initially seem as desirable as the main hub of Marbella, the exclusive neighbourhoods of La Zagaleta, the Marbella Club Golf Resort, La Reserva de Alcuzuz and El Madroñal make the areas sought-after in their own right.
For those looking for a slightly lower price point, Nueva Andalucía, Santa Clara, La Alquería are growing quickly and offer a variety of homes for all kinds of buyers.
Who else is buying property in Marbella?
While there may have been a slight drop in the number of British investors, they still make up over a quarter of property purchases registered by non-Spanish investors in Andalucía during 2016 – a number which has only grown since. Interest has come from other local and international markets, too, including European neighbours like Sweden, Belgium, France and Germany, as well as growing interest from Spanish investors.
Looking further afield, a growing number of investors from Russia, China and the USA are making their way to Marbella. Thanks to the Golden Visa (a scheme providing family residency and, eventually, citizenship, to investors spending over €500,000 on real estate), the core base of buyers from the Middle East remains strong.
The international appeal of Marbella means that the property market here generally remains more stable than elsewhere in Spain. Even when the British economy is struggling, there are investment sources from all over the world that keep the market competitive and stable.
Are there any investment alternatives?
In times of economic uncertainty, it’s a good idea to invest in a property market that is known for its strength. In this regard, Marbella holds its own against global capitals, tourist havens and luxurious destinations that are notorious for enticing the rich and famous.
Compared to the property values in London, Los Angeles, Singapore and Monaco, Marbella real estate is competitively priced and can offer a good return on investment, whether you’re using it as a second home, holiday property or long-term rental.