Global events have hit the world’s economies hard, and Spain is no exception. Rampant inflation and the increase in Euribor interest rates (4.183% in October 2023) have seen the demand for Spanish property dip by 16% throughout Q1 to Q3 of 2023. According to the Spanish National Statistics Institute, during this period the number of transactions dropped to 21, 159 purchases compared to 25,300 carried out in the same period in 2022. Yet, regardless of the downturn, the figures are extremely positive, the number of property purchases throughout the province of Malaga and the Costa del Sol are currently at record 30-year high.
Luxury property sales
It is also important to remember that these figures provide an overview of the entire Spanish property market, ranging from cheap homes in the Spanish countryside to new build apartments in Marbella, through to the very specific market for luxury real estate sales like Andara villas 1 and 2, two contemporary designed Marbella new builds for sale set within their own plot of land on the Golden Mile.
Highest priced property in Spain
The exclusive enclaves of the Marbella’s Golden Mile, Sierra Blanca and La Zagaleta have the distinction of being home to the most expensive properties on the Spanish peninsula. The average price of a luxury villa in Sierra Blanca is 8.5million Euros and the average price for a luxury villa in La Zagaleta Benhavís is the 10.7€ million.
Marbella hitting an all-time high
Marbella seems to have the Midas touch. Since the arrival of the famous Marbella Club Hotel on the beautiful stretch of coastline known as the Golden Mile in the 1950s, Marbella has been a popular destination amongst wealthy tourists, those looking for their dream home that will give them access to a luxury Mediterranean lifestyle or a savvy property investment.
Record levels of investment
Today, Marbella is experiencing extraordinary growth across all sectors, from investment in hospitality such as the recently opened Relais & Chateaux La Fonda Heritage Hotel in Marbella’s old town and the multi-million Euro refurbishment of grand old hotels such as the El Fuerte Marbella which reopened as a 5-star hotel complete with a restaurant run by Michelin starred chef Paco Pérez. The dated H10 Andalusia Plaza Hotel which first opened its doors in 1973, was recently reopened in 2022 as the latest in the Global Hard Rock Hotel chain. Similarly, the PYR Hotel has seen extensive refurbishment before reopening as the Occidental Puerto Banús (part of the Barceló Hotel Group).
Designer collaborations
There are also exciting new designer collaborations like Fendi’s beach club at the iconic Puente Romano and Dolce & Gabbana’s partnership with Málaga born chef Dani García at La Cabane. In addition, there are also designer led real estate development projects such as the Karl Lagerfeld Villas in Marbella, Marbella Design Hills (another D&G collaboration) and Elie Saab Villas, also in Marbella.
Marbella’s new zoning plan 2024
In March 2023, Marbella’s Mayor, Ángeles Muñoz, announced that 12 million square metres of rustic land will be reclassified as urban, allowing for new commercial, business, residential and open spaces. The plan which is expected to be ratified by the General Municipal Planning Plan (PGOM) by the end of 2023, is an ambitious initiative that will enable further development and a greater commitment to public housing, health, urban regeneration, parking and mobility.
Record tourism in 2023
Málaga International Airport posted record numbers of arrivals during Q1 and Q2 of 2023, receiving over 10 million passengers, which equates to a 9,2% increase upon 2019 (pre-Covid record year). The airport now operates over 151 direct flights from most corners of the world. Hotel occupancy during 2023 has been the highest since records began, 20% higher than 2019.
Multi-award-winning property developer and co-founder of Andara Capital, Erik Muller, explains, “Marbella is essentially an all-year round destination which consistently attracts property investment. For many years there has been a lack of supply and a greater demand for high-end property, which means there is never an oversupply which can be the case in other markets. In the luxury property market in Marbella, the majority of purchases are made without financing, therefore increasing interest rates have little effect on this market.”
With all of this exciting activity going on, it is not surprising that the market for luxury real estate in Marbella is booming. With such high demand and low levels of stock, the question is not whether you should invest in luxury property in Marbella, it is how can you be the first in line.
The old adage is true when it comes to finding the best Marbella property for sale… it’s not what you know, it’s who you know….
If you would like to be the first to know about luxury real estate on the Costa del Sol, get in touch with Erik or Paula on info@andaravillas.com.