Marbella's Golden Mile pulls Property Market out of the Doldrums

Recovery of Marbella's property market is being lead by the Golden Mile rather than the far more affordable properties in Elviria, Cabopino or Puerto Banus. It's the Golden Mile's luxury and exclusivity that has prompted foreign buyers to invest in Spain. Surrounded by subtropical gardens and without any irritating new developments threatening to block stunning sea views over several miles of golden beaches, the Avenida Príncipe Hohenlohe, to give the Golden Mile its official name, is back in favour with international house buyers and investors.

Marbella is Trend Setter

Marbella is the only town in Spain where property prices have actually gone up, rather than down. The pearl in the Costa del Sol's crown continues to lead the upward trend with more sales recorded than in any other urbanisation anywhere else in the country.

The Costa del Sol's macro-developments, which typically boast hundreds of identical apartments and town houses, have been ignored in favour of this prestigious stretch of Marbella, where one doesn't have to worry about neighbours, because there are so few to get under one's expensively shod feet.

Residential developments with a limited number of luxury properties that appeal to the wealthy have been leading Marbella's property market into more profitable waters, after the Spanish market collapsed at the start of 2008.

The other luxury development that is going better than expected is the Sierra Blanca urbanisation which perches high above central Marbella and boasts sea and mountain views. It's not only sales of second-hand sales that have increased. Investors who had purchased land in these two neighbourhoods are now willing to go ahead with building their dream developments, since land prices are no longer falling. Off-plan sales are happening far more frequently now, an unheard of market activity just one year ago.

Two new Golden Mile Developments

Nicolas de Zutter, head of sales at estate agency Marbella for Sale, whose exclusive complex Diamond Beach is in the heart of the Golden Mile, close to the N-340 and beach, said recently in an interview with local media: "We have already sold two of our properties. Those clients are foreigners, but some people from the north of Spain have also shown interest."

Diamond Beach is currently at first phase stage, which consists of four luxury villas with 460 to 600 square metres, a swimming pool and their own lift, each property selling for ca. 1.3 to 2 million euros. The agency's clients are mostly from northern Europe and expect their Spanish holiday home to have plenty of light, close proximity to the beach and open plan kitchens where they can entertain. The first properties are scheduled for March 2016 completion.

Nicolas de Zutter added: "We’re talking about one of the last plots on the Golden Mile, close to the beach, and it is also a modern project, which is what people want these days."

The first phase is costing around 7 million, but potential buyers started to make enquiries the moment work began on the plot. Now the developers are considering a second phase.

Unique local Conditions

The lack of new construction projects and out-dated existing housing stock have been deciding factors in the recovery of Marbella's property market.

 "There has been no new construction in Marbella since 2006 or 2007 and prices did not drop during the crisis as much as elsewhere," said Nicolas de Zutter, pointing to the fact that Marbella property buyers are more discerning, looking for more unusual properties with high-end finishes and design at realistic prices.

Not far from the Diamond Beach complex a new project is taking shape. Benalús, a 9,000 square metre development, is the latest residential project on the Golden Mile to get under way.

Some 5,700 square metres of this development are set aside for landscaped gardens, swimming pools, a spa and gymnasium and similar communal areas. In addition, the 20 million euro development will have an adjacent green zone area with 7,000 square metres. Three blocks of 30 new homes will be surrounded by these green zones to ensure exclusivity and privacy. Several clients stemming from northern Spain have already reserved their off-plan apartments, so the developers said.

Ground floor apartments at Marbella's Benalús development will feature 3 and 4 bedrooms and penthouses will have their own private swimming pools. Prices range from 800,000 to 1.5 million euros.