Marbella Property Prices
For many who are thinking about buying a property in Marbella prices of properties in the area are one of the most important metrics they look at as they search to buy their property. When we are looking at price of real estate in Marbella, we must also look at the wider perspective and look at the prices of properties on Costa del Sol and prices of properties in Malaga , Andalucia and Spain. In addition we should also look at the general cost of living in Marbella and see why is Marbella expensive in compare to other cities in Andalusia in particular.
Data has shown that in 2021 and early 2022 property transactions have been the highest since 2008 in Spain overall. Although this data is more related to the macroeconomics of the market and Marbella and Costa del Sol traditionally have been a unique market to themselves it does contribute to the overall healthiness of the market. One certainly can also say that the strong Marbella and Cost del Sol market does contribute to the improvements of the overall Spanish property market.
In general, the property market in Costa del Sol which Marbella is part of is considerably healthy and it is considered one of the best in Spain if not the best. The areas within Costa del Sol property market which are seeing the best results and improvement are Marbella ad Estepona.
It can be seen from the data that Marbella and Estepona are seeing the biggest prices increases on the Costa del Sol. In addition, Los Monteros properties situated in Marbella East are seeing significant price increases and there are some very expensive properties located in the area.
So, as you can imagine the increase in the price of real estate in Marbella, Estepona are essential factors that have made the Costa del Sol property prices increase overall. Based on studies conducted recently 3 out of 10 areas in all of Spain which have seen properties increase in value are situated on Costa del Sol.
Areas with significant price increases in Marbella
Recent studies have shown 3 out of 10 areas in Spain where property prices have seen the highest increase are situated on Costa del Sol, let’s now see where those areas are. For example, Nagueles which is one of the most established areas of Marbella situated both close to the exclusive area if Sierra Blanca and the very popular and in demand Marbella Golden Mile has seen some significant price increases in its’s real estate.
Property prices in Nagueles have seen as astonishing price increase of about 41% and price per square meter in Nagueles Marbella goes for €3,440 square meter. Other areas of Marbella that are on the list include the exclusive are of Las Brisas situated in the Nueva Andalucia’s Golf Valley.
You can find many incredible properties in Las Brisas in Marbella and being close to several top golf courses in the area certainly contributes to the area’s popularity. Las Brisas has seen property prices increase 38% in the last two years and price per square meter in the area goes for €4,537 per square meter.
The other area situated on Costs del Sol although not in Marbella area that is on the top 10 list is the Guadalmensa in Estepona. Prices in Guadalmensa have seen a price increase of almost 34% (to be exact 33.8%). If you are planning to buy property in this area you are looking at paying about €3,751 per square meter. Guadalmensa is situated beachfront and some of the homes situated there offer incredible and tranquil lifestyles with breath-taking views of the Mediterranean Sea.
- Nagueles (Marbella)
- Las Brisas (Nueva Andalucia)
- Guadalmensa (Estepona)
Comparing prices of properties in context
As we stated earlier when looking at property prices in a particular arae such as Marbella you must look at the wider perspective. This means not only looking the property prices in the specific area such as Marbella and also looking at prices of homes in Costa del Sol which Marbella is part of the and the rovince of Malaga, where Marbella is located.
Furthermore, expanding the perspective wider looking at the property prices in Andalucia which is the autonomous region or states where Marbella is located and Spanish property prices in general are also advisable. Looking at how Marbella properties compare to prices in general, putting it in context to the wider market is advisable in order to provide a better perspective and understanding of the property market.
So again, to put the prices of properties in Marbella into a wider context we can see that Marbella property prices are the highest in Cost del Sol and Andalucia. This is due to the Marbella area’s many attributes such as its microclimate offering excellent climate all year around, the quality of life and its cosmopolitan atmosphere.
As we mentioned before 3 of the top 10 areas in Spain where property prices have increased the most are situated in Costa del Sol. Two of these area being Nagueles and Las Brisas are located in Marbella and the the other area of Costa del Sol form the top 10 is Guadalmansa situated in the municipality of Estepona.
Resales vs Newly build Properties
Most of the properties sold in the period of 2019-2021 are resales with newly build homes following way behind. This can contribute to many prime locations such as beachfront areas and other popular areas highly demanded being already built and no or very little prime land available. Out of 10,883 properties sold in the period of 2019-2021 almost 91% where resales.
- New Build
Property prices are impacted by shifts in market segments
Looking at the profile of those buying properties in Marbella and Costa del Sol we can see some interesting shifts from what it was before. Traditionally many of those buying properties in Marbella tended to be older. This was due to many factors such as those buying properties were retired people with pensions or even inheritance.
But lately although the older group of property buyers has not gone away there are new market segments being added. We are seeing more and more younger people seeking to buy property in the area. In general, both the older but in particular the younger property buyers do much of their research online and things like remote viewing are more common now than they were before. Overall, this has made the property buying process faster than before.
Due to the addition of younger people seeking to buy properties and the use of technology for the process we are seeing price increases as has been stated earlier. Furthermore, these factors have caused supply of properties in certain popular areas of Marbella decrease and prices being increased due to more demand .
When it comes to buyers of properties in Andalucia we can see the British market is still strong followed by property buyers from Sweden, Belgium, Norway and Holland.
Foreign buyers are particularly strong in Costa del Sol which Marbella is part of.
Foreign buyers and their impact on property prices
Filtering the data further from Andalucia and Malaga to Marbella the number of foreign buyers in Marbella is huge and it is anywhere from 90% to 95% of overall buyers. This again can be contributed to quality of life in Marbella and its composition atmosphere.
Filtering more than data and looking at foreign buyers in the province of Malaga in the first quarter of 2022 the number of foreign buyers has seen a 23.17% increase from all of 2021. This can be contributed to higher demand in general and easing of travelling restrictions due to the pandemics.
The reduction in the availability of properties in certain prime locations in addition to more demand from new market segment such as the young people are dynamics that have impacted the overall Costa del Sol property market. Since properties in prime locations is less and less available and prices are increasing many popular areas of Marbella property buyers are looking at less popular areas within Marbella and surrounding areas which has lesser demand before. One can say these factors have caused snowball effects overall on Cost del Sol property prices and perhaps even further down to even Sotogrande situated in the province of Cadiz.
Due to the availability of land to build new homes diminishing and number of properties in many prime and high-end areas of Marbella decreasing significantly high-end and popular areas of the Marbella will certainly be strong for many years to come!