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Unveiling Marbella’s Real Estate Growth: A 2024 Market Overview

30th Jul 2024 路 9 min. read

As we like to stay ahead of the game, we have conducted thorough research and found that the 2024 Marbella real estate market continues to experience robust growth. Property prices have been steadily increasing, with a significant rise observed since the end of the pandemic. This growth trajectory suggests that property prices in Marbella still have potential to reach their all-time highs, presenting a favourable opportunity for investors and home buyers.

A notable aspect of the current market is that property prices, while on an upward trajectory, still remain below the peak levels of 2008. Reports from 2023 indicated that prices in the Malaga province, encompassing Marbella, were about a quarter below their highest point during the 2008 boom. This suggests potential for further growth, yet there remains a significant gap to reach those historic highs, even when adjusting to current inflation rates.

In Andaluc铆a, which includes Marbella and the Costa del Sol, prices rose by 8.9% in 2022. Spanish government data from 2023 indicates that this trend is persisting, with Andaluc铆a experiencing a 9.5% year-on-year rise, and Malaga province, encompassing Marbella, seeing an impressive 15% increase. Marbella itself has recorded average price rises of 20% compared to the previous year, marking some of the largest increases in the country.

鈥淲hile a lot of other countries and cities have had it tough with high interest rates and high inflation, Marbella has sailed through it in a stable way. The market is as strong as it was 2019.鈥�

We have seen a shift in the methods of purchasing a property in Marbella, which reflects a broader trend in the market. A move towards more cash purchases is evident, reducing the reliance on mortgages. This trend is crucial in maintaining a balanced level of mortgage debt in the market. Illustrating this point, in November 2022, mortgage applications in Malaga province were significantly compared to the boom years, despite a similar volume of property sales.

Another vital component of Marbella's real estate stability is the controlled release of new properties into the market. Recent from the Malaga province architects showed a healthy increase in the approval of new property licenses. This steady flow of new-build properties indicates a market that is growing sustainably, avoiding the pitfalls of over-speculation and rapid, unchecked development.

We have also observed significant growth in the Marbella rental market in recent years. With the high demand for long-term rentals in the area, particularly from families relocating from across Europe, the market has seen a notable increase in rental rates. Many families are choosing to rent first with the intention of eventually buying property, driven by factors like Marbella's excellent international schools and remote work opportunities. The luxury lifestyle and beautiful nature of Marbella have also contributed to it becoming home to some of Spain's most expensive rental properties. Hence, Marbella proves to be a lucrative investment opportunity for rental property investors.

In Marbella, the demand for properties remains strong, though we have noted that buyer preferences are evolving. The demand for villas priced between one and three million euros has softened due to rising interest rates and higher home loan costs. This has led to increased interest in luxury apartments, penthouses, and townhouses in the 鈧�500,000 to 鈧�1,000,000-range, especially those that have been recently renovated. The ultra-luxury villa market, with properties over 鈧�3,500,000, continues to thrive, showing resilience to economic changes.

Marbella鈥檚 prime areas like the Golden Mile and Sierra Blanca have seen annual price increases of around 25%, with even higher rises of 32% in areas like Zagaleta and La Quinta. Beyond these high-profile locations, the broader Marbella market is experiencing more moderate and steady growth. In quieter areas like San Pedro and Elvira/Cabopino, year-on-year price increases are more in line with the regional average, at around 16% and 10% respectively.

The global trend towards preferring outdoor living spaces, maximising leisure time, and embracing remote work, which gained momentum during the pandemic, shows no sign of decreasing. This shift is further supported locally by the rise in high-tech sector jobs in nearby Malaga, especially with the relocation of to the city, which has led to an influx of tech professionals in the Costa del Sol region.

The tourism and hospitality sector in Marbella continues to flourish, as evidenced by the high hotel occupancy rates. This enduring appeal to international tourists is further strengthened by the development of significant luxury hotel projects. Such growth in the hospitality sector indicates a robust and healthy economy, reinforcing Marbella's status as a luxury holiday destination.

In 2024, Marbella's real estate market is set to benefit from significant developments in the hospitality sector. Key projects include the opening of five-star Kimpton Los Monteros Marbella by IHG, construction of a Four Seasons resort in R铆o Real and the Las Dunas Club (W Hotel) in Los Monteros. These projects demonstrate strong investor confidence in Marbella as a luxury destination and are likely to positively impact the real estate market, attracting affluent visitors and buyers to the area.

Marbella's appeal is not limited to tourists alone. The area has seen a surge in interest from international buyers, particularly from Northern European countries. The local population, with a significant proportion of residents from outside Spain, reflects this international allure. Additionally, the flourishing tech sector in nearby Malaga, marked by the presence of major companies like Oracle, EY and Google, is drawing a professional workforce that values the Marbella's lifestyle. This global appeal provides a buffer against short-term economic fluctuations, such as interest rate changes, ensuring more stable value growth in this premium location.

In 2023, 惭谩濒补驳补 was recognised as the world鈥檚 best city to live and work in, according to a survey by InterNations, the largest global community for expatriates. This conclusion was based on a comprehensive survey involving over 12,000 expats from 177 nationalities residing in 181 countries. The survey assessed cities on various factors including quality of life, ease of settling in, personal finance, work-life balance, and local friendliness.

stood out for its harmonious blend of rich cultural heritage, modern amenities, inviting Mediterranean climate, and a diverse, dynamic economy. The city was particularly commended for its friendly environment, excellent climate and weather, and its commitment to a balanced lifestyle with ample recreational and social opportunities.

This recognition significantly benefits the Marbella real estate market, owing to Marbella's strategic location within the 惭谩濒补驳补 province and its close proximity to 惭谩濒补驳补. This proximity allows Marbella to benefit from 惭谩濒补驳补's rising popularity, further bolstering its position as a sought-after real estate destination.

Local authorities have been instrumental in promoting Marbella as a year-round destination. Their efforts have paid off, making Marbella an attractive choice for families and professionals alike. The town's ability to offer a high quality of life, coupled with its proximity to tech hubs in Mal谩ga, contributes significantly to its appeal.

Marbella's future in real estate looks promising with the imminent approval of its new master town plan, known as the PGOM. This plan is a blueprint for sustainable urban development, focusing on creating a 'garden city' and a '15-minute city' where residents can access core services within a short walk. This approach to urban planning is geared towards enhancing the quality of life and promoting environmental sustainability.

Investing in the Marbella real estate market can be quite advantageous, especially considering its robust growth and the region's enduring appeal as a luxury destination. Here are some insights into the potential return on investment (ROI) for those considering investing in this market:

• Strong Capital Appreciation: Marbella has consistently shown strong potential for capital appreciation. The property prices have been steadily increasing, and this trend is expected to continue, especially in prime locations and luxury segments. This means investors can expect a significant increase in the value of their properties over time.
• High Rental Yields: The rental market in Marbella is vibrant, driven by high demand for both long-term and short-term rentals. This demand is driven by Marbella's popularity as a tourist destination and a preferred spot for expatriates, especially from Northern Europe. Properties in prime locations or near tourist attractions can yield substantial rental income, contributing to a favourable ROI.
• Diverse Investment Opportunities: Marbella offers a range of property types for investment, from luxury villas and penthouses to more affordable apartments and townhouses. This diversity allows investors to choose properties that align with their budget and investment strategy.
• Impact of Hospitality Developments: The ongoing and upcoming luxury hospitality projects in Marbella, such as the opening of high-end hotels and resorts, are likely to enhance the area's appeal and property values, potentially leading to higher returns for real estate investors.
• Stable Market Conditions: The Marbella real estate market is known for its stability, thanks in part to the controlled release of new properties and the area's appeal to a broad international clientele. This stability reduces investment risk and can lead to more predictable returns.
• Tax Considerations: Investors should be aware of Spanish property taxes and any potential tax liabilities in their home country. Efficient tax planning can maximise net returns from real estate investments in Marbella.
• Long-term Growth Potential: With Marbella's strategic location near 惭谩濒补驳补, its expanding tech sector, and its evolving profile as a sustainable and year-round destination, the long-term growth potential for real estate investments in the region are promising.

鈥淚 believe that this time right now is probably one of the best times to invest. Based on what a lot of experts in the global market says, normally in a time like this, we know that interest rates are coming down. Being first on that train before other buyers enter the market and fight for the same properties that you're going to be fighting for, you're probably better off investing now.鈥�

In summary, the Marbella real estate market presents a compelling opportunity for investors, with potential for both capital appreciation and high rental yields. As with any investment, it's crucial to conduct thorough research and consider factors like location, property type, market trends, and tax implications to maximise ROI.

At 91果冻, we are committed to guiding you through this process, ensuring that your investment decisions are well-informed and tailored to your specific goals.