Marbella, April 15th 2019.- Real estate transactions in Marbella and its surrounding sphere of influence, specifically Estepona and Benahavis, more commonly known as the “Golden Triangle,” have stabilised after eight years of sustained growth.  Without a doubt, there has been a series of factors such as an over-supply of properties all aimed at the same client profile, the uncertainty being generated by Brexit and the global economic slowdown. These contributing factors have led the experts to foresee in the coming months a moderation in the rhythm of sales and property prices.  This Real Estate Market Report for the Costa del Sol has been written by Diana Morales Properties|Knight Frank, one of the most prestigious agencies in the area.  The report suggests the necessity to take all of these factors into account and calls all the players in this sector to “work at being creative, offering quality and value, and hope that price levels even out in the near future.”

Even though there has been an enormous increase in the number of sales in Estepona and Benahavis, Marbella still tops the charts in the number of transactions completed.  It is also a national indicator, often ahead of the curve economically, partly due to the fact that it is so dependent upon and in tune with the broader European economies.  The economic uncertainty in Catalonia combined with the recent tax reforms, virtually abolishing inheritance tax in the Autonomous Region of Andalusia, has had a positive knock-on-effect on these shores.

In an international context, the uncertainty being generated by Brexit has resulted in a slowing down of the British market, although it is still the biggest in Spain and especially here on the coast; in 2018 they represented 15% of the market compared to 21% in 2015.  This decrease has been compensated by an increase in the domestic market as well as a marked increase in the Norwegian, Swedish, Dutch, French, Belgium as well as Middle Eastern markets. All of these regions continue to show strong economic growth and have high income levels, which makes the Costa del Sol relatively affordable.  Easter week is one of the busiest times, witnessing a large increase in the number of possible buyers coming to the coast to view properties.

However, the adjustments being made by most economies in their downward output forecasts for 2019-2020 to just below 2%, as well as the fact that some American and European funds are not as active as they were a few years ago, makes experts think that there is a cooling down of economic fortunes in the near future. The report furthermore highlights the point that developers are suffering due to the effects of trying to compensate for the increased costs of construction and in land value which has forced them to raise their prices.

For this reason, the Real Estate Market Report by Diana Morales Properties | Knight Frank considers that these signs indicate that there should be “a cooling off of land and construction costs as well as an easing of property prices if the market is to regain its dynamism, as well as a resolution of the Brexit impasse.” According to their estimates, it will be the top end of the market which will be more resilient to these changes and will best maintain its value.

Benahavis, Estepona, Ojen, Mijas, as well as Casares and Manilva, have absorbed a large part of the recent growth in the real estate market in the past five years, largely in part due to the planning issues that have been plaguing Marbella, which has seen an increase in prices from 3%- 7% depending on the area and type of property during 2018.  However, “we’re witnessing a cooling off of demand in the new areas, as they too see prices rise perhaps more quickly that the market can carry right now.”

The report has furthermore detected two important phenomena.  On one side, there is a scarcity of new projects being developed in Marbella, being a direct consequence of the lack of land available for development and the problems arising from the delay in urbanistic planning licences.  This, and the lack of offer, has ensured that the Golden Mile has maintained its status as being the most exclusive address available, with prices reaching as much as €20,000 per meter squared on frontline beach properties. Urbanisations such as Sierra Blanca or Guadalmina maintain their prestige over the areas of Estepona or the Cala de Mijas, where there is more availability of land and building licences are readily attained.  The report also highlights the worrying lack of variety, with the majority of projects on the market focusing on the same mix of design, amenities and price range. The oversupply and over-competition in this sector has resulted in it being the victim to the greatest drop in sales from the lower–to-mid range bracket. But that’s not to say that original and truly luxurious initiatives can’t be successful.

New styles of properties

The report states that the majority of buyers in Marbella do not need mortgages and tend to be cash buyers.  The younger generations (35-44) rank first in property searches followed then by those in the 45-54 age bracket.

Demand is being centred on modern and newly constructed properties, with an increased interest in those promotions offering all the comforts and open spaces that can be found in a house but are in an apartment.  A change has also been noted in the style, going from the white minimalistic look of recent years to a fusion of classic-contemporary style. Environmental credentials and energy-efficient homes are also more important than before.  The market for renovating and modernising older properties is one that remains solid and is gaining in popularity again. This is especially noticeable in Marbella, the Golden Mile and in Nueva Andalucía. This formula allows for buyers to have the best of both worlds, a property in the best location combined with the best design, quality and technology.

About Diana Morales Properties | Knight Frank

Diana Morales began her professional career in real estate in Marbella in 1978, making Diana Morales Properties one of the oldest agencies on the Costa del Sol and a leader in the luxury real estate market. The company´s reputation both national and international as a boutique agency has gone from strength to strength. Having represented both Sotheby’s and Christie’s in the past, is now the sole representative of Knight Frank in Marbella, holding longstanding connections with both clients and fellow luxury segment professionals.  Diana Morales Properties | Knight Frank bring together the reputation and expertise of the local market with the international reach of having over 500 offices in 60 countries.

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Marbella, April 12^th 2018.- The number of residential property sales in Marbella and its immediate surroundings, accompanied by the ever-increasing number of tourists year on year, have lead experts from the real estate and banking sectors to predict the beginning of a new golden era for the real estate sector in the area for the coming years.

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According to the ‘Marbella Property Market Report 2018’ prepared by Christopher Clover, CEO of Panorama Properties, the longest established real estate agency in Marbella, there are still some areas where the price of housing is below the peaks of 2006 and 2007. However, the demand in the most sought-after areas of the municipality is outstripping supply, which has driven up prices, even almost doubling in the most exclusive areas compared to 2011, when the market hit bottom. These kinds of increases are located in very specific places such as the beachside of The Golden Mile.

The Costa del Sol, and especially Marbella, is one of the locations that most drives the residential real estate market. In fact, the National Institute of Statistics (INE) confirms that Malaga is the fourth Spanish province, in which the most houses were sold during 2017 (30,064 compared to 15,917 in the Balearic Islands), surpassed only by Madrid, Barcelona and Alicante.

According to Panorama’s ‘Marbella Property Market Report 2018’, the recovery of the residential market in the Marbella area began in 2012, two years earlier than in the rest of Spain, hence it is more consolidated than in the rest of the country. Currently, the cycle of new construction is gradually beginning, as confirmed by the figures of projects approved in 2017 by the Professional Order of Architects of Malaga. A total of 4,895 living units that represents only 10.88% of the 45,000 units approved in 2007.

“The strength of the current residential market lies with properties between 200,000 and 1,500,000€ for apartments and between 700,000 and 2,500,000€ for villas. Many of the properties located in the best residential areas that are between 20 and 50 years old, are being bought and either torn down and rebuilt, or totally refurbished, some by end users, others by professional developers”, specifies expert, Christopher Clover, who has been analysing and writing about the luxury real estate sector on the Costa del Sol for 48 years. It also highlights how “The strength of the Marbella market differs from that of the rest of Spain due to the “multi-source market”, that is, the extraordinary diversity of nationalities of the buyers coming from all over Europe and the rest of the world”.

Investors in the area acknowledge

 that the rental market in Marbella is experiencing a strong rebound, with increases in both demand and prices to unprecedented levels, especially for luxury and modern properties that also offer security. In addition, fixed and variable mortgages are offering interest rates at historic lows and tourism figures are breaking records year-on-year.

In an area well known for its “residential tourism”, real estate sales are closely related to the high number of tourists that visit Marbella, which is an added factor for positive analysis.

Christopher Clover concludes: ” For many, the hard evidence of the positive evolution of the Marbella property market, will no doubt lead them to conclude that 2018 and the coming years represent an outstanding time, perhaps even a historic opportunity, to purchase property in this area”.

Panorama Properties

Panorama, in the city since 1970, is the longest established real estate agency in Marbella and is the exclusive representative and international associate in the Greater Marbella area of the prestigious U.K. based global real estate agency Savills.

Panorama is one of the few residential real estate agencies in Spain that is regulated by the renowned British institution, Royal Institution of Chartered Surveyors (RICS). Panorama and its team of 27 professionals specialise in the sale and rental of high quality villas, townhouses and apartments in the Golden Mile area and its surroundings, including the municipalities of Benahavís and east of Estepona.

Website: www.panorama.es

Christopher Clover

Mr. Clover is an accredited Real Estate Consultant (Gestor Intermediario en Promociones de Edificaciones – GIPE and graduated with distinction in Economics, Commerce and French from the University of Virginia, USA. In 2015 he accepted the nomination to become an Eminent Fellow of the Royal Institution of Chartered Surveyors (FRICS). Christopher is trilingual in Spanish, English and French, and has over 48 years of professional experience in the sale and administration of Spanish properties and international real estate advice, working in England, France, Japan, Morocco and the United States where he obtained his first real estate license in 1968.

Web: www.mncomunicacion.com

Email: comunicacion@mncomunicacion.com

Móvil: 626 681 308

La entrada ‘Marbella Property Market Report 2018’ signals a new Golden Age for the sector se publicó primero en MN Comunicación.