Marbella Property Sales outperformed the Rest of Spain last Year

According to statistics published by the Ministry of Development, Marbella saw its property sales rise by far more than any other area in Spain last year, ending the year with a total of 3,115 completed sales, which represents a growth rate of 23.6%.

However, overall Spain’s property market declined by 17.4 %, compared year-on-year with 2012. This means that Marbella’s property market finished 2013 on a similar sales figure to that recorded prior to the country’s property market crash at the beginning of 2008.
 
Marbella received a huge vote of confidence from foreign buyers in particular, but also benefited from having a large contingent of resident cash buyers who had been biding their time and snapped up the best bargains the moment the “price was right”. Last year’s result represents the second consecutive year of growth for the glamour resort at the Costa del Sol. In 2012, Marbella’s sales transactions grew by 11.5%.

Unlike other parts of the country, Marbella’s appeal as a destination for semi and permanent residency has not waned, nor has it lost its attraction as a good place to invest in holiday homes that can be let to tourists.

Based on a total of 300,349 sales transactions completed in 2013, the Ministry of Development’s report included sales figures for all provincial capitals and settlements consisting of more than 100,000 residents. Marbella managed to outperform:

Parla (17.2%)
 
Móstoles (12.7%)

Guadalajara (12.5 %)

Ceuta (10.3%)

Madrid (9.3 %)

Areas for bargain hunters

Marbella’s fortunes rose because the resort has always had a good supply of high quality properties in prime locations. The luxury market in particular drove the increase in sales. Other areas did not fare quite so well, which means that bargain hunters should head to towns like Estepona, Mijas or Benalmádena, where property sales rose by far less, namely by 9.34%, 4.1% and 0.5% respectively.

Some areas saw their property market contract even further, with Malaga managing to register a 3.64% decline in sales.

Despite such difficulties, the Malaga province as a whole has outperformed most other traditional property hot spots, with the exception of Alicante province, which continued to surge ahead with property sales and registered a total sales volume of EUR 422 million, compared to Malaga’s EUR 393 million.

The expiry of tax relief on principle homes’ sales and the raising of the IVA on new home purchases made a considerable dent in sales transactions, which even the Ministry of Development had to concede. Many home purchasers rushed their transactions through before the deadline had run out, and this had quite an impact on last year’s sales, which otherwise would have been more in line with 2012’s 11.5% growth rate.

So where does that leave bargain hunters?

Marbella’s contrasting districts command very different prices, and there is also a considerable difference in price between second-hand home sales and brand new properties. It pays to look at several different areas and to register with several quality estate agencies to get a complete picture of the local property market.
 
A 2-bed resale apartment in the prestigious Golden Mile or Sierra Blanca urbanisation may cost EUR 600,000 to EUR 750,000, but a similarly luxurious but brand new 2-bed apartment located in the east of Marbella, in Elviria for example or Calahonda, may cost only EUR 125,000.
 
Marbella offers buyers a lifestyle hard to match in other resorts along the Costa del Sol. Boasting a plethora of tourist attractions, areas of outstanding natural beauty, a fantastic nightlife and excellent shopping, Marbella’s appeal to foreign buyers is obvious. However, the town has also shown that it can weather a financial storm better than others over the past 60 years, making Marbella’s property market a safer bet for investors than other parts of Spain.

With more than 300 days of sunshine a year, Marbella offers families amazing opportunities to lead an active outdoor life. For European buyers hoping to relocate for a better life/work balance, the town’s easy access means they can actually commute between their home countries and Spain. Buying a Marbella property can initiate not only a total change of lifestyle but also represent a great long-term investment.