‘Marbella Property Market Report 2018’ signals a new Golden Age for the sector…
• This analysis, prepared by Christopher Clover, CEO of Panorama Properties, highlights that the price of housing in some areas of Marbella is still below the peaks of 2006 and 2007
• In other ultra-prime areas, prices have even doubled since 2011
• The new construction cycle is just beginning, reaching only 10.88% of projects approved in 2017 compared to the 2007 total
Marbella, April 12th 2018 – The data on the sale of homes in Marbella and its immediate surroundings, accompanied by the ever-increasing number of tourists year on year, have lead experts from the real estate and banking sectors to predict the beginning of a new golden era for the real estate sector in the area for the coming years.
According to the ‘Marbella Property Market Report 2018’ prepared by Christopher Clover, CEO of Panorama Properties, the longest established real estate agency in Marbella, there are still some areas where the price of housing is below the peaks of 2006 and 2007.
However, the demand in the most sought-after areas of the municipality is outstripping supply, which has driven up prices, even doubling in the most exclusive areas compared to 2011, when the market hit bottom. These kind of increases are located in very specific places such as the area between the road and the beach of The Golden Mile.
The Costa del Sol, and especially Marbella, is one of the locations that most drives the residential real estate market. In fact, the National Institute of Statistics (INE) confirms that Malaga is the fourth Spanish province, in which the most houses were sold during 2017 (30,064 compared to 15,917 in the Balearic Islands), surpassed only by Madrid, Barcelona and Alicante.
According to Panorama’s ‘Marbella Property Market Report 2018’, the recovery of the residential market in the Marbella area began in 2012, two years earlier than in the rest of Spain, hence it is more consolidated than in the rest of the country.
Currently, the cycle of new construction is gradually beginning, as confirmed by the figures of projects approved in 2017 by the College of Architects of Malaga. A total of 4,895 units compared to the 45,000 units approved in 2007 is only 10.88%.
“The strength of the current residential market lies with properties between 200,000 and 1,500,000€ for apartments and between 700,000 and 2,500,000€ for villas.
Many of the properties located in the best residential areas that are between 20 and 50 years old, are being bought and either torn down and rebuilt, or totally refurbished, some by end users, others by professional developers”, specifies expert, Christopher Clover, who has been analysing and writing about the luxury real estate sector on the Costa del Sol for the past 48 years.
It also highlights how “The strength of the Marbella market is different from that of the rest of Spain due to the extraordinary diversity of nationalities of the buyers”.
Investors in the area recognize that the rental market in Marbella is experiencing a strong rebound, with increases in both demand and prices to unprecedented levels, especially for luxury and modern properties that offer security. In addition, there are fixed and variable mortgages with interest rates at historic lows and tourism figures that are breaking records year-on-year.
In an area well known for “residential tourism”, real estate sales are closely related to the high number of tourists that visit Marbella, which is an added factor for positive analysis.
Christopher Clover concludes: “The large number of irrefutable proofs of the positive evolution of the Marbella real estate market will undoubtedly lead many to conclude that 2018 and the years to come represent an exceptional time, perhaps even a historic opportunity, to acquire properties in this area”.
Panorama, founded in 1970, is the longest established real estate agency in Marbella and is the exclusive representative and international associate in the Greater Marbella area of the prestigious U.K. based global real estate agency Savills.
Mr. Clover is accredited as Intermediary Manager in Building Promotions (GIPE) and graduated with distinction in Economics, Commerce and French from the University of Virginia, USA. In 2015 he accepted the nomination to become an Eminent Fellow of the Royal Institution of Chartered Surveyors (FRICS).
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