Marbella's real estate market is reaching new heights of sophistication and quality, attracting luxury buyers from around the globe. The 2023 Real Estate Market Report by Panorama Properties sheds light on some remarkable trends:
- Marbella's Premier Destination: Marbella continues to shine as a top residential and tourist destination.
"Continuing a trend that started over six decades ago, Marbella has cemented its status as the quintessential resort destination appealing to both established wealth and the many new and emerging affluent who have bought homes in the area. But its appeal doesn't stop there: just ask any of the many thousands of families from all over the world who have chosen to make Marbella their home." – Chris Clover, Panorama Properties
- Attraction of Luxury Homes: The availability of top-tier homes in Marbella is a major draw for luxury buyers worldwide.
"An address in Marbella has always been a symbol of international prestige, today more so than ever before. As our Mayor, Ángeles Muñoz, recently stated, "Marbella distinguishes itself from other resort destinations by offering a one-of-a-kind blend of world-class hotels, residential properties, services and facilities, solidifying our position as one of the most significant resort cities in the world." – Chris Clover, Panorama Properties
- Luxury and Cutting-Edge Design: New and renovated homes in Marbella epitomize luxury, world-class design, and cutting-edge technology – a significant transformation, reaching new levels of sophistication and quality.
"Indeed, it is the availability of world-class quality homes in the Marbella area which is unto itself, one of the primary motivational factors attracting luxury-end buyers." – Chris Clover, Panorama Properties
- Limited Mortgage Usage: Surprisingly, less than 10% of luxury property transactions in Marbella involve mortgages, even after an increase in interest rates.
"Total number of sales level, as well as in the Marbella area. But while the increase in interest rates has made buying homes more expensive overall, fewer than 10% of property purchases are made with a mortgage in Marbella's luxury end of market - which we define as those properties with selling prices in excess of €2 million." – Chris Clover, Panorama Properties
- Continued Growth: In 2023, the luxury property market is even stronger, with a 20% increase in the highest market segment, with record-breaking investments nationwide. The so-called "Golden Triangle" (Marbella, Estepona, Benahavís) saw its highest sales numbers in 16 years, with a remarkable 123% growth in the last decade.
"The 2022 sales boom of properties in all price ranges in Marbella, Estepona and Benahavís - the "Golden Triangle" - broke all previous records with a 20% year-on-year increase in sales volume. The same happened throughout the country, with overall real estate investment in Spain up by one third compared to 2021 to reach €17.5 billion, a figure never before seen in Spain." – Chris Clover, Panorama Properties
- Competitive Prices Persist: Property prices in Marbella rose by an average of 15% between June 2022 and 2023, reaching a historic high of €4,233 per square meter.
"Asking prices in all price categories in Marbella have risen, on average, by about 15% between June 2022 and June 2023, reaching a new all-time high of €4,233/m2 - approximately double the average asking price per m2 of 10 years ago."
- Global Comparison: Marbella ranks 16th globally in property prices, making it attractive and competitive compared to cities like Madrid and Dubai.
"Marbella prices, even at today's levels, are still very competitive: of the 50 most costly municipalities in Spain, Marbella is only number nine on the list..."
"Globally, Marbella is in 16th place, just ahead of Madrid and Dubai, as quoted in the Knight Frank 2023 Wealth Report, with Monaco leading as the most expensive city to buy prime property in the world, at an average sales price of over €50,000 per m2. – Chris Clover, Panorama Properties
- Foreign Buyer Interest: In Andalucía, 15% of property transactions involve foreigners, rising to 34% in Málaga province, with British, Swedish, and Dutch buyers leading the way.
"While purchases by Spaniards are ever-present, and represent the very foundations of the overall Marbella property market, at least 90% of the properties of over €2 million
are sold to foreigners." – Chris Clover, Panorama Properties
- Emerging Markets: Markets like Poland and Eastern Europe are on the rise, driven by a desire for a warmer climate and a higher quality of life.
"The last two years have seen the strong emergence of the Polish market as well as buyers from Eastern Europe, certainly as a reaction to the war in the Ukraine, but also for the same reasons as most others: the desire to change lifestyle to a warmer climate in a high-quality area of the southernmost tip of Europe, far from the problems and potential dangers of Central Europe." – Chris Clover, Panorama Properties
- Middle Eastern travellers: direct summer flights from various Middle Eastern cities to Málaga, attract more travellers.
"Marbella has also been a favourite place for Middle Eastern holiday makers and property purchasers since the late 1970's, and remains so today with many looking into buying a home not only for holidays but also as a means to obtain the Spanish "Golden Visa". There are now direct flights to Málaga from Bahrain, Abu Dabi, Qatar, Egypt, Turkey, Kuwait and Saudi Arabia during the summer season."
- Dollar boosts Marbella: notable rise in property purchases by US citizens in the region, underscoring Marbella's global appeal.
"Since the beginning of 2022, due to the enormous increase in the strength of the dollar to the euro, there has been a marked increase of US citizens purchasing property in our area, exemplary of the spread of the fame of modern-day Marbella throughout the world. Direct New York-Málaga flights are now being offered by United Airlines, a reflection of this growing interest in Marbella and the Costa del Sol in general."
- Promising Future: Despite global uncertainties, Marbella's bright future is secured by the trust and wealth generated by its residents, tourists, and investors.
You can read the full report by Panorama here.
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