The change in taxes and legislation, the start of the procedures for the new General Municipal Planning Plan (PGOM) and the increase in the price of high-end homes in Marbella, have consolidated the Costa del Sol town as premier luxury destination in Europeaccording to him Real Estate Market Report prepared annually by the real estate agency Diana Morales Properties released by the organization this Tuesday.
R.regional representative of the international consultancy Knight Frank, from the agency have highlighted that “Marbella has ceased to be just a tourist destination for golfers and retirees, to become a permanent residence of many families with hybrid work formats that demand quality of life, infrastructures, prestigious international schools and accessibility to the rest of the big European cities”.
The aforementioned report reveals that while in other cities the recession, as a consequence of the Russian invasion of Ukraine and the rise in interest rates, has begun to take its toll, “Marbella has come out stronger, showing growth figures well above those of its competitors, and continues establishing itself as one of the favorite places not only for those looking for a vacation home, but also for those who want to establish their residence”.
Thus, the document highlights that the price of high-end homes in Marbella “recorded an increase of 7.1% last year, as reflected in Knight Frank’s Prime International Residential Index – PIRI 100.
in relation to sales volume, points out that in 2022 in Marbella and its area of influence (the well-known Golden Triangle that forms together with Estepona and Benahavís), there was an increase compared to the previous year, both for new-build and second-hand homes, although the data Quarterly reports from the Ministry of Public Works revealed a significant slowdown in sales of the first type.
As they point out, “this was more evident in the municipality of Marbella with quarterly figures for new construction sales down in the last three quarters of 265, 50 and 30 homes respectively. Meanwhile, in comparative terms, existing home sales numbers remained fairly consistent throughout the year.
The sector expects that 2023 will be “healthy”
In reference to the prospects for this year The text points out that despite being in a context of uncertainty – with the scourge of the energy crisis caused by the war and the financial earthquake originated in Silicon Valley -, which could undermine the sustained growth enjoyed during the post-Covid period, thanks to the solid market behavior in the last two quarters, “everything suggests that 2023 will be another quite healthy year for the real estate sector on the Costa del Sol in general, but especially in Marbella”.
Pia Arrieta Morales, managing partner of DM Properties, has noted that “our prospects could be described as cautiously optimisticand while sales volume appears to have slowed, we’ve seen average transaction value continue to rise.”
In addition, he added that “it is expected that the legal limbo in which the urban situation in Marbella is locateda – which currently operates based on the PGOU of 1986 – will come to an end at the end of the year, providing urban security on the land pending final approval to be developed, which will attract investors and developers seeking business opportunities in the city,” he concluded.
Foreigners buy 33.5% of the properties in Malaga in 2022
According to the record of purchase-sales data, the 2022 recorded the highest annual growth of high-end prices (5.2%) since the global financial crisis. In the province of Malaga, more than a third of the sales (33.5%) were acquired by foreigners, which represents an increase of 6.12% compared to the previous year. According to the College of Land Registrars, the United Kingdom (16%) continues to lead the buyer nationalities, followed by the Swedes (12%) and the Netherlands (8%).
In Marbella, for its part, a continued increase in buyers from Eastern Europe (Poles, Slovaks, Hungarians, Czechs) can be seen. Last year DM/KF made sales to buyers of more than 18 different nationalities, with a notable increase in Polish buyers. And in stark contrast to global reports that buyers of luxury properties are getting younger, in 2022 the average age of its buyers stood at 55 years.
Buyers demand turnkey homes
From DM Properties they have detected a series of specific characteristics of the international buyer, pointing out that they have not changed much compared to the previous year, but noting that more and more are looking for ready-to-live-in or newly built properties, without further worries. The three main nationalities that preferred to opt for the purchase of a new construction home in Spain in 2022 were Belgium with 24.5%, followed by the Netherlands, with 21.90% and Poland with 21.30%.
TO local level, It is important to note that when it comes to resale properties, Marbella continues to have more demand than the neighboring municipalities, while Estepona takes the lead in new-build homes and is where more projects have been developed in recent years due to availability of land and greater ease in obtaining licences.
Another aspect to highlight is the sector of “turnkey” villas, where buyers are willing to pay more for a property of these characteristics instead of having to go through a reform.