Thanks to low-cost airlines, Andalucía, the Balearics and Catalonia have become more accessible over the years and in the first six months of this year these were the Spanish regions receiving most budget airline passenger arrivals. Scandinavians are beginning to really discover the Costas and Denmark provided a 47.8% increase in budget airline travellers this year, totalling 314,944 passengers. Interestingly, the Nordic countries are also responsible for a greater number of foreign property investors buying holiday homes at the Costa del Sol in general and in Marbella in particular.

Britain and Germany still lead budget airline travel to Spain, representing 32.9% and 18.9% of total passengers respectively. More than 5 million Brits enjoyed a low-cost trip to Spain the first half of this year, that’s a 4.3% rise on the same six month period last year. At the same time, German budget air travellers increased by 10.1% to 2.9 million, followed by 1.4% million Italian air passengers (down 15.7% on 2012).

Andalucía recorded a 7.6% increase in low-cost air travellers, welcoming 2.2 million passengers in the first six months of this year. Many of these holidaymakers will return as house hunters, now that they have seen for themselves what their money can buy in Spain. House prices have fallen by 12.8% in the first three months of this year, compared to the same quarter in 2012.
 
While for many expats the Spanish dream home has turned into a nightmare of negative equity and a loss of their life savings, for people who did not get carried away during the housing boom years and who are only now discovering the Costa del Sol as an area ripe for investment, house buying couldn’t be sweeter. The second-hand homes market saw the highest increase in demand, while newly built homes are falling behind.

In Marbella, however, it is still prime property in the upper price listings that attracts the greatest interest. Sought after districts like El Madronal, La Zagaleta, the Golden Mile or Sierra Blanca offer stunning villas set in large plots for prices that fall well short of their usual million plus. It is the time for purchasing quality - and foreign investors from countries like Russia, India and China can now look forward to a golden handshake when they arrive - property investments of EUR 500,000 and more will automatically entitle new non-EU nationals to receive Spanish residency, according to a recent announcement by Spain’s Prime Minister.

For those who can afford an investment of EUR 1 million there is a limited choice available. Prime locations and prime homes are very much in demand. Russian buyers are the more experienced, having invested in prime real estate in other European countries. There are now so many Russian expats living and working in Marbella a number of local magazines and newspapers are now publishing Russian language versions.

Across the border, Portugal is also seeing a resurgence of foreign demand for property, putting more pressure on estate agents and homeowners at the Costa del Sol to be creative when promoting properties.
 
Marbella has the distinct advantage of being just as appealing as the Côte d’Azur with regard to prime homes, sunshine, outstanding natural beauty and sophisticated amenities, but unlike the French or Italian Riviera property at the Costa del Sol is affordable, ever in the upper price categories.

The luxurious, gate communities of La Zagaleta and El Madronal are perched high above Marbella’s city centre, far away from tourist crowds heading for the beach clubs, bars and restaurants. Leafy green tranquillity among the cypress trees awaits buyers, when they arrive to view luxury villas.
 
An area blessed with outstanding natural beauty, mountain and sea views, olive groves and pine forests, El Madronal is just a 10 minute drive from the coast and a 15 minute car journey from Marbella centre, but feels like an entirely different part of Spain, despite the Opencor supermarket and the Monte Halcones shopping centre, where home owners can do their everyday shopping before meeting up with friends at cafes or restaurants to enjoy a meal and a chat.

El Madronal property prices start at around EUR 890,000 upwards for 3-bed villas in their own private grounds.