5 good reasons to purchase a property in Marbella now

What do California, New Zealand and the Costa Del Sol have in common? In all three places you can enjoy winter sports in the mountains in the morning and relax on the beach in the sun in the afternoons.

It is not surprising, therefore, that during Spain’s real estate crisis the Costa del Sol was one of the few regions on the Spanish mainland which kept its value-stability during the country’s real estate crisis. The volume of transactions declined, but that had bottomed-out in 2015. This year, for example, more than 4,000 properties were sold in the municipality of Marbella, corresponding to the pre-crisis level of 2007.

Luxury villa in Marbella

Luxury villa in Marbella

Thus investors who buy today can feel confident about the value stability of the Costa del Sol, and Marbella in particular. Nevertheless there are still more good reasons not to wait too long before buying:

1. Price development still moderate

Yachts in the port of Marbella

Yachts in the port of Marbella

The property crisis also had little effect on top locations like the famous „Golden Mile“, as owners here usually do not have pressure to sell.
Yet double-figure price increases like before the crisis were also a thing of the past. Whilst in the rest of Europe the property prices have gone through the roof in the last five years they have at least stayed constant in prime locations in Marbella.

Over the past two years prices have risen again, but overall the average price level on the Costa del Sol is still up to 25% below the peak period of 2004. This will not, however, last much longer – anyone who has followed the developments in Germany or the UK over the past few years is aware of the jump in price rises which can develop. This is why Spain in general, but

2. Hot summers – mild winters

Marbella is an all-year-round destination. In the summer, mid- and northern Europeans like to swelter on the beaches, and in the winter, whole hordes of golfers come to start the golfing season in spring-like weather as early as January.

Anyone who sees a property in Marbella as a capital investment can expect a stable occupancy rate and correspondingly high income from holiday rental.

Marbella has a 27 km-long coast line with 23 beaches, and no other municipality in Andalusia has more ‚town beaches‘ than Marbella. The Playa Fontanilla, for example, is within walking distance of the city centre and is the most popular beach.

From hip to romantic – Marbella’s beaches are not only very clean but also cater for every taste. For those who love clubbing with with a beach-feeling Nikki Beach or Bounty Beach are the most popular, and the Playa

3. About every 6th buyer comes from abroad

Picturesque side streets in Marbella

Picturesque side streets in Marbella

For a long time the Costa de Sol was considered a British Eldorado (around 6,000 Britons currently have their main residence in Marbella), and most of today’s real estate buyers still come from the UK. Marbella has officially approx. 140,000 residents, of which just under a third are foreigners.
In recent years Scandinavians and, above all, the Germans have discovered Marbella as an alternative to the Balearic Islands. According to the Ministry of Construction, the proportion of foreign buyers in the years 2012 to 2015 rose from 12.56% to 15.40%.

Foreign buyers generally purchase well-located vacation properties and invest more money than domestic buyers. This is also a sign that Marbella is increasingly in the focus of international investors.

4. Income from holiday rental

In contrast to the Balearic Islands the Costa del Sol has no compulsory holiday rental license. Owners who can not or do not wish to move the central point of their lives there can generate attractive yields from holiday rental as southern Spain is now booming more than for a long time.

In 2017 alone more than 30 million tourists are expected on the Costa del Sol and hotels alone are not able cover this enormous demand. Apart from that more and more holidaymakers prefer the freedom of “their own“ house to regulated hotel life. In 2016 as far as 50 kms inland all holiday accommodation was fully booked.

Thanks to attractive purchase prices holiday rental yields can be very attractive – 5% is the rule but some properties in good locations can reach up to 8% with an occupancy rate of around 200 days a year.

5. But for us the most important reason

Golf course in Marbella

Golf course in Marbella

Marbella is simply a wonderful place, vibrant but still full of history. Those who like basking in the glamour of the celebrity world are attracted to the luxury resorts like Puerto Banus, and passionate golfers find, in Marbella alone, a choice of 10 golf courses. Amongst them is the royal golf club Real Club de Golf Las Brisas, one of the best courses in Europe and twice venue of the world cup competition.

In total, the Costa del Sol attracts with more than seventy golf courses and thereby justifies its nickname „Costa del Golf“. Added to that are its beautiful beaches which inspired Queen Isabella to exclaim „mar bella“, thereby giving the city its name.

Marbella is the queen of the Costa de Sol, often copied, never equalled and for us the most beautiful place in the world to live. Come and be enchanted – but be careful, it might be so good that you stay.

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