“International buyers in particular are looking for a second home either for their own private use or as a stable investment. In some parts of Marbella, up to 93% of potential buyers come from abroad,” said Smadar Kahana, managing director of Engel & Völkers Marbella.
High demand from international buyers boosts prices in Málaga
Málaga, the capital of the province of Málaga, is the sixth largest city in Spain and one of the most popular holiday destinations in the Andalusia region.
One of the premium locations is the historic city centre and La Malagueta, with residential property selling here for top prices of €9,000 per square metre in 2018. “The premium area of La Malagueta is located directly by the beach and due to the lack of plots to develop combined with high demand, property prices have consequently increased,” Mario Garnica, Director of Engel & Völkers Málaga, said.
Approximately 60% of buyers hail from abroad, in particular from Scandinavia, Germany, Belgium, France, England, Ireland and the Netherlands. International buyers tend to be most interested in penthouses and villas, while the national domestic market focuses more on townhouses and apartments.
Newly constructed villas command premium in Marbella
Marbella, a popular holiday resort for British and Irish holidaymakers, is situated beside the Mediterranean and set against the backdrop of the Sierra Blanca Mountains. The area, synonymous with luxury and exclusivity, is a highly desirable holiday destination all year round and also commands significant prices for homes.
Last year, the highest prices were achieved east of Marbella - in Los Monteros - where prices for newly constructed villas reached as high as €25,000 per square metre.
In the west of Marbella, prospective buyers typically look for contemporary villas with at least 400 square metres of living space, with all the latest technical fittings and substantial garden grounds. Other popular factors include proximity to golf courses and sea views.
Properties of this type in premium locations, with Guadalmina Baja being one example, commanded top prices of approximately €10,000 per square metre last year. Marbella’s ‘Golden Mile’, meanwhile, stretches more than five kilometres along the coast and attracts interest mostly from international buyers seeking new properties by the beach. Last year, top prices of €9,000 per square metre were achieved.
Prices forecasted to rise in the future
Property on the Costa del Sol remains an attractive investment, especially for international clients, and further price increases are predicted for the future.
“We anticipate the rise in property prices to continue over the course of this year with expected growth between 7-10% in Málaga,” Mario Garnica said.
In Marbella, Engel & Völkers also predicts positive growth. “Demand for luxury real estate remains high,” Smadar Kahana added. “Major new construction projects, such as the exclusive ‘The Collection’, specifically meet this demand. In Puerto Banús near Marbella, we anticipate a 25% increase in sales in 2019 compared to the previous year.”
If you would like to find out more information about the Spanish residential property market, it can be found in the “Market Report for Spain and Andorra 2018/2019” published by Engel & Völkers.