Who is buying and what is selling on the Costa del Sol?

The Costa del Sols real estate market continues to rise at a great pace; breaking records in 2017 this eighth year is reaching a new height. With foreign purchases on the rise, it is a fact that 35% of the past years transactions made in the region of Andalucía were purchases made by foreign buyers. In Marbella, the cities traditional multiculturalism and its wide variety of properties are its best features, attracting many varied types of clients, triggering the number of foreign buyers up to 80% for property transactions in the city. In addition to this mixture of cultures, its location is fantastically communicated with cities such as: London, Paris, Rome, Vienna, Munich, Oslo and many others all within a four hours flight, its globally known climate are further fundamental reasons why generations of Europeans migrate to this special area time and time again.

The diverse buyers profile is very positive for the market creating a healthy and stable property market. By having such multinational buyers our economic situation can be considered independent to that to the country. The city is attractive to foreigners for many reasons creating a safe investment.

In 2017/18 Britain lead foreign investment purchasing in the area representing approx. 20% of foreign transactions, remaining very stable despite Brexit. High demand is followed by the French (9%), Germans (8%), Belgians (7%) and Swedes (7%). Continuing with the Arab and Russian clients who also have the option of obtaining a Spanish residence permit when purchasing over 500,000€, receiving a ‘Golden Visa’ for foreign citizens who reside outside the European Union. The global economic recovery has greatly helped and shows clearly when looking at stability for purchasing abroad. Experts say that the increase in transactions made by foreigners for the past eight years is due to amongst other factors their greater ability to buy with their own resources without having to take out a mortgage, whilst at the same time the national client who typically takes out a mortgage is experiencing historically low interest rates.

The types of property in demand are well balanced on the Costa Del Sol and each nationality marks a particular type. British customers usually have an average budget of around 350,000€ looking for a second residence or holiday home near golf courses. For this reason they tend to choose areas such as Nueva Andalucia with various developments such as La Corniche, La Maestranza or La Dama de Noche that meet their requirements.

Puerto Banus mostly attract Arab and French clients, who in turn are usually the type of tourist that comes to this area. In addition, one of the main motivations for clients purchasing in the Puerto Banús area is the investment. The idea of a prime property purchase, refurbishment and subsequently selling or renting. With this in mind several studies certify how a successful refurbishment can increase the value of a property by 30% for a rental. This has also been one of the most attractive points for the national client, the Spanish client, alongside the economic recovery.

Scandinavian and Belgian customers tend to be more interested in larger properties, these being villas, alongside their particular style resulting in new refurbished properties. An area that is ideal for these clients tastes are the Marbella East area (Las Chapas, Marbesa, Los Monteros), La Zagaleta and or the “New Golden Mile” (between Guadalmina and Estepona). Due to their more private locations and being set back from the busy city centres, they offer spacious plots and last year saw an increase in purchasing these types of properties for investment purposes. The opportunity to build a property that suites all your needs, in addition to the economic savings, compared to purchasing a property already built, is very attractive.

All pointing to the fact that the real estate market in the area continues to increase, looking at statistics of past years, we can see a smooth and balanced growth. For this reason, it is not a question of urban boom, but a reality, consolidation of the Costa del Sol as a proven and continued choice when investing in a holiday home or a new permanent. Do not hesitate to contact Marbella Unique Properties if you want to be part of this list of satisfied buyers.