Marbella Real Estate Market Analysis

Spain has had its ups and downs in the property market over the last decade, and while some regions are recovering more slowly than others, Marbella is still on the rise. So despite the country's slow recovery, falling markets, an EU referendum and multiple general elections, Marbella and the Spanish property market remain resilient and strong.

When property prices were at their highest in 2007, the sudden stop in the market caused a sharp drop in demand that was expected from buyers year after year. Eventually, once the market hit its lowest point in 2011, the market saw a surge in purchases from customers looking to enter the market and purchase properties at rock bottom prices.

And prices began to rise again, resulting in a 28% increase in sales in 2014. However, in 2015 the market experienced another downturn, slowing the pace of growth, resulting in a small increase of only 9.83% in Marbella and an even smaller 8.97% the following year.

With the fall of the pound, it has become a 'wait and see' time for most potential buyers before deciding to buy. This brings us to 2017, where prices in Marbella are rising again and attracting all sorts of buyers across a wide range of price points. Land prices are rising as availability increases and building costs have increased by 10% in the last 3 years.

With its luxury reputation, Marbella attracts a sophisticated and discerning buyer. The market is currently dominated by property sales between €1 million and €5 million, with buyers willing to pay these prices for impeccable quality and location. Properties are available in a range of budgets, starting from €100,000.

With the ever-changing market, most home buyers are looking for modern apartments and villas. When choosing a property, home cinemas and games rooms are more important to the client than distance to the sea and the presence of gyms. There is also an increasing demand for technology such as home automation systems, modern lighting settings, security systems and alarms. Thanks to the successful recovery of the market, new construction projects planned and designed to a high standard are selling very well.

So even with political and economic uncertainty, the Marbella property market remains stable and will certainly continue to grow. And demand for new properties is increasing in all price ranges, you can view all the offers for real estate in Marbella on our website.