Average property prices in Marbella, arguably the Costa del Sol’s and even Spain’s most famous tourist resort, remain 10-20 per cent below peak levels and should see solid future gains for anyone investing in 2016, according to one of the area’s most established estate agencies.
From land plots to properties, price increase trends in Marbella look set to continue, making the city and surrounding area an excellent investment prospect for the years ahead, said a recent report by the agency. It added that although sales volumes have picked up, prices still have a long way to go, and current price levels are around those of 2004.
Marbella has enjoyed five years of recovery, with the volume of residential sales rising by 9.83 per cent in 2015. The city has raced ahead of national performance thanks to its multi-country source market, which has positioned Marbella at the forefront of the Spanish property market recovery.
Looking closer, 4,390 properties were sold in Marbella in 2015. The figure is less than one per cent behind the 2006 pre-crisis boom year figure of 4,432. The rate at which sales volumes increased calmed somewhat during 2015, following the heady increases of 24 per cent in 2013 and 28 per cent in 2014, as pent-up demand (while buyers waited for prices to bottom out and then seized on the chance to buy bargains) for properties in Marbella has been satisfied.
The strong upturn in the Marbella property market is also highlighted by figures from the Colegio de Arquitectos of Malaga, which show a sharp increase in the number of completed residential construction projects in 2015, following years of steady decline.
Marbella’s market has grown for several reasons. The city enjoys a true 12-month season, with few other Mediterranean destinations able to rival it. The weak Euro, competitive pricing and low mortgage rates have all contributed, as have the potential for high yields and the perception of Marbella as offering a safe haven of quality within the EU.