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Marbella Property market overview
In Spain, the property market has been steadily growing for some time. The country’s economy has been improving, and this is reflected in increased demand for real estate. In addition, interest rates have been relatively low, which also helps to attract buyers who may not have had the financial means to purchase a property in previous years.
The Marbella real estate market has seen an uptick in sales over the last few years, driven by an increasing demand for luxury properties.
Spain's economy has been improving as of late, and it shows. The prime property market in the Marbella area enjoyed a significant rebound from the 2020 slump. Official figures for transaction volumes last year within the Golden Triangle, when combined with 2020 and compared to 2019, suggest this was largely a result of pent-up demand. However, average transaction values rose significantly over the past 16 months, something echoed by a number of estate agencies in the Marbella areas reporting record years in terms of sales turnover
In 2021, the value of real estate in Marbella increased by 10% due to the influx of new millionaires. The rich are getting richer, this trend is reflected in the value of the properties that these individuals are buying.
The data for 2022 shows that buyers of luxury properties continue to get younger. We are also seeing better-qualified buyers, with much of the property research process now taking place remotely.
The average age of a first-time buyer has increased by two years since 2022, and this has been driven by an increase in the number of younger people looking to buy their first property. The average age at which people are buying a second home has also increased by two years.
Our research indicates that the property search process is now more efficient than ever, with much of the property research process taking place remotely in advance of a physical visit.
This is because remote viewings have almost become “norm”. This means fewer in-person property viewings and a buying process that has sped up.
The real estate market in Marbella continues to be a hot topic, with demand outstripping supply.
This trend has been sustained during the first quarter of 2022, with a knock on effect of dwindling supply of key ready properties in prime locations producing significant price increases and a search for suitable properties in neighbouring locations.
The evidence is clear that this trend will continue throughout the year, driven by a number of factors including:
– Strong demand from buyers looking to purchase property in Marbella
– A limited supply of available stock within the market due to low levels of new development coupled with an increase in demand from expatriates relocating back to Spain following Brexit
– The Spanish government’s economic incentives for foreign investors who purchase property in Spain
The market for luxury homes has been very active in recent years.
However, we feel that the pent-up demand for these properties is now largely satisfied, and we expect demand for the high end of the market to continue going strong for the foreseeable future, albeit at a less frantic pace than last year.
What's driving demand in 2022
Low interest rates and the availability of cheap finance
• A shortage of prime stock
• Rising wages and accrued savings in lockdowns
• Strong equity market performance and record bonuses
• A reassessment of housing needs and lifestyles
• More flexible working patterns
• Wealth creation – 5 million new millionaires in 2021 globally
• The appeal of property as an inflation hedge
For more information on the Marbella property market, or to take a look at our latest listings please get in touch with us directly at +44 20 8064 2261 or contact us here.
