According to El Economista, the number of new mortgage loans for house purchases in Spain declined by 39.8% in June of this year, compared with the same month a year ago. Only 31.4% of homes were bought with some form of mortgage finance with Spanish banks funding on average just 76.9% of the house purchase.

This, according to the General Council of Notaries, is not likely to change in the near future. With the average price per square meter for a Spanish home currently standing at around EUR 1,206, Marbella property has not been this affordable for more than a decade.

At the upper scale of the Marbella property market there are, of course, luxury homes in prime locations that command the highest prices. A modern 6-bed villa constructed to the best standards and sitting in a large plot at the foot of the Concha Mountain, which is located a mere 4 minutes’ drive from Marbella town centre, will cost at least EUR 19,900,000.
 
At the other end of the spectrum, there are resale apartments in the east of Marbella, which should be viewed as an introduction: costing between EUR 120,000 and EUR 250,000 such apartments will need some upgrading but are ideal as the first step onto the Marbella housing ladder, especially when holidaying with a young family several times a year.
 
Marbella has always commanded higher prices than, say Torremolinos or Malaga, but that’s because there is so much on offer amenity-wise all year round that the glamour resort’s property market gets away with it.

An average 4 to 5 bed villa in a good location, with a decent plot size and a swimming pool set in mature gardens, in short a home close to the beach in western Marbella and with modern design still has a price tag of around EUR 1.5m. However, smaller town houses in areas such as Marbesa, Cabopino, Elviria and Altos de Elviria can be found for less than EUR 700,000, if one looks for resale properties that need a little work.

Homes in Rio Real, Bahia de Marbella, the Golden Mile and Sierra Blanca on the other hand command the highest prices. Wealthy Russian and Chinese buyers, who have acquired plenty of experience buying luxury homes in London’s fiercely competitive property market, know how to haggle, and on average they manage to get a price reduction of around 24% on such prime properties.

Less wealthy property investors usually take their chances on the resale market which, as a result, has performed far better than the new homes market. Location is everything in Marbella, which means local estate agents advise prospective buyers with a limited budget to consider several different areas rather than focussing on a particular part of town.

For example: a beachside villa at Reserva de los Monteros, boasting 4 bedrooms, will be on the market for around EUR 1,590,000, but a contemporary style villa with just 3 bedrooms in Guadalmina near the golf course and with close proximity to the beach will cost EUR 1,595,000, just a fraction less than a 5-bed, 7-bath detached villa in the heart of Benahavis, a home currently on the market for EUR 1,596,000. Benahavis is just a 10 minute drive from Marbella and a 35 minute drive from Malaga Airport, yet money stretches a lot further here, offering buyers that much more for their hard-earned cash.

In Bahia de Marbella a typical 6-bed resale villa will currently cost around EUR 2,700,000, although most have already been massively reduced by their owners. A typical luxury villa in this part of Marbella will tick quite a few boxes on the “must-have” front with regard to design features. Offering unobstructed panoramic views and built over two levels, a detached villa might boast a fountain in the entrance hall and a double staircase, a gallery on the upper floor and have a spacious living room with fireplaces and direct access to mature gardens with swimming pool.

Most of this type of villas will have been reduced by ca. EUR 500,000 to get foreign buyers interested. For discerning buyers prepared to haggle Marbella has plenty of choice.