The 2017 real estate market

At the beginning of August, we begin to study the figures for the first two quarters of the real estate market for this year. Marbella Unique Properties have decided to analyse the market situation for the first half of 2017, to be able to better understand the current situation and the future month’s development.

2016 was a great year for the real estate market with a total of 457,693 transactions, which implied a rise of 13.9% over the previous year. Undoubtedly the gradual stability generated has served to normalize the market that was extremely affected by the economic crisis of 2008. Marbella has always kept an eye on national market, but works in a completely different way and at its own pace. Between 2013 and 2016 the market showed a clear revival of the economy and the real estate recovery on the Costa del Sol, thanks to rises in tourism figures and banking stability in addition to the return of national economic growth. Since 2016 the value of housing has increased by 4.7%, being the third consecutive annual rebound and the highest one so far.

The Marbella market revived and the majority of buyers were a new generation of foreign buyers who have revived interest in Marbella and its wonderful climate, The Golden Mile beaches and Puerto Banus yachts. It is estimated over 65% of that the capital invested in real estate transactions in the Spanish market in 2016 and this first half of 2017 comes from international investors. The largest investments came from US investors, mostly through investment funds (at the beginning of this year) they stand out with a majority of approx. 20%, overtaking the British who achieved 19% (who managed to overcome the initial uncertainty that Brexit provoked). The list continues French investors at (8%), Germans (7.9%) and Belgians (6%). To these nationalities we must add the increase of interest shown by the Scandinavian countries. European nationals typically purchase a property in Spain for two main reasons: as an investment and or to be able to use/enjoy and they choose Marbella as an idyllic place to spend their holidays or as a place to retire to.

Not forgetting a very important Marbella clientele, the Arab market, they are closely linked to Marbella and its historical origins, more recently with important locations such as the Hotel Puente Romano, or the magnificent Palace that was purchased and built by King Fahd in the 1980’s along with the arrival of his royal family. This was a turning point for clients from the Gulf, when the EU-UAE circulation treaty was agreed and signed in May 2015, which confirmed visa exemption for short stays. This allowed the Arab citizens to be charmed by Marbella and led to an increase in sales of luxury villas and apartments that continue to this day. Arab clientele require important features in their properties such as 24 hour security, gyms, indoor swimming pools etc…

Spaniards have also formed a large part in the recovery of the real estate market. Bank stability along with the country’s recovery has led to a very important change for Spanish citizens. During the crisis sales were down, people chose to rent instead believing that that was the safest financial option for the ordinary citizen. In turn, during those years tourism grew significantly in the country and for that reason touristic property rentals also grew, increasing the value of long-term rentals. In 2017 the tourism and sales data merged to be able to offer more competitive mortgage rates. In addition, new ideas and platforms have encouraged the recovery of the market such as Crowd Funding internet based, purchasing in cooperatives that allows small or large investments to all types of people. It seeks to generate a re-valuation of the investment, Crowd funding is very focused on buying houses in very secure areas, renovating them and then selling them on obtaining that profitability for the micro-investor.

New construction properties have been in high demand in the past few months in Marbella, with increasing interest in the areas such as Benahavis, Estepona, etc. With this in mind the areas that continue to remain the most secure and sought after are The Golden Mile, Marbella town, Puerto Banus and Nueva Andalucía. Great quality properties in good locations maintain their prices, with variety of property types in central areas being available for all types of customers.

All this considered, Marbella Unique Properties feels positive about Marbellas future prospects. Global economy is thriving and is reflected in our city. We are on the threshold of achieving another record summer with high tourist levels and property sales. Please feel free to visit our office and or contact us with any queries you may have. We are here to help!