Marbella: Prices up 23% since market low in 2012

Prices and Sales

• Since 2012, prices have risen 23% and sales 36% across the Marbella area according to Spain’s Ministry of Development

• 2018 saw prices continue to rise the number of sales dipped marginally

• Lower value areas such as Estepona, Ojén and East Marbella have recorded some of the largest price increases in recent years

International demand

• Sales to foreign buyers have increased from 46,700 in 2015 to 65,400 in 2018 according to the Spanish Registradores

• UK buyers are still the single largest group of overseas buyers in Spain and their market share (as a percentage of all overseas purchases) has increased from 14.8% in 2013 to 16.6% in 2018.

• In Marbella, UK buyers have reduced in number but demand from Scandinavian, Belgian, Dutch, French and Middle Eastern purchasers has offset the decline.

Prime focus

• Prime areas across the municipalities of Marbella, Benahavis and Estepona include the beachfront, the Golden Mile and La Zagaleta.

• For those seeking greater value areas such as La Alqueria, El Paraiso and the New Golden Mile are also popular

New homes

• While Marbella solves its planning issues, Estepona, Ojén and Mijas have become the focus of the coast’s development

• The new development sector is at a crossroads; land prices and construction costs have increased and this is putting pressure on developers’ margins.

Tax changes

• Keen to attract new residents and stimulate the economy, the Government of Andalucia reduced the region’s rate of income tax in April 2019 and cut inheritance tax to 1% for spouses and children

• Spain’s Golden Visa continues to operate  – Spanish residency can be sought in return for an investment of €500,000in real estate. The visa can be renewed every two years.

To read the full report: visit Marbella Insight 2019

To talk to Mark Harvey, Head of our European Sales: Call +44 20 7861 5034

To view properties currently for sale in Marbella :visit Knight Frank Spain