The Marbella property market is more resilient today then every before, thanks to the increase in foreign demand. Although, Marbella is not a newcomer to the luxury property market, it seems by all accounts that the famous seaside city is reconfirming its status as a top destination for holiday makers and foreign property buyers alike.
This year so far has been nothing short of exceptional for the property market on the Costa del Sol. The National Institue of Statistics (INE) has confirmed that Malaga - driven by hotspots like Marbella, had the fourth highest amount of sales last year totaling 30,064.
Even more good news hitting the market is how three coastal cities that of course includes Marbella, are among the most mature markets in Spain. The other two cities are Estepona and Benahavis.
Marbella, Estepona & Benahavis Property
All three towns saw sales shoot up by 11.15% in 2017 compared to the year before, exceeding pre-2007 levels by 10.4%. The rest of Spain still falls short at 21% pre-crisis levels. Estepona, which some are referring to as the 'new Marbella', saw sales rocket by 28.3% last year, and Marbella got its boost with 6.9%.
The village of Benahavis is considered a hidden gem on the Costa del Sol. It's natural beauty and tranquil surroundings attract foreign buyers looking for a second holiday home or to simply retire and perhaps raise a family. Regardless, this year it seems Benahavis property is quickly becoming just as popular as Estepona and Marbella. The village of Benahavis saw 499 'Sold' boards go up, which represents 6.7% of the total 7,487 purchases made in all three cities.
It was back in 2011 when the Marbella property market hit rock bottom with recovery starting in 2012, which was two years before the rest of the country. This earlier boost for Marbella was because of foreign investors from many different countries. Basically, in Marbella from 2014 to 2015 property sales were at 28.3%, an extraordinary amount thanks to those waiting for the perfect opportunity to buy property. It was during this time that the best possible bargains were available before increases started to happen.
As you can well imagine, many of the financial experts are weighing in and confidentially stating that there is no property bubble in the foreseeable future. There is however, a more diversified group of property buyers who are looking for very spefic types of properties. This in turn has spurred developers to create a broader offer of contemporary properties. In the past, for property buyers, it was style and modern amenties followed by prices that drove the market. Today however, the more diversified buyers are focusing on lifestyle, services and the luxury living experience.
Looking ahead, the property market trends on the Costa del Sol and in particular with Marbella, Estepona and Benahavis, a more diversified client base means even shock factors like Brexit have had little impact on the buying process. We've seen an increase of British buyers alongside interest from Scandinavian, Belgian and France. With the overall economic indicators looking generally positive for Spain, along with the increase in buyers, the demand for property on the Costa del Sol will only continue to grow for the foreseeable future.