According to the General Council of Notaries, the average price of a Spanish home declined to just EUR 1,206 per square metre in June of this year, representing a decline of 13.3% compared to the previous year. Prices for  newly build apartments experienced the sharpest decline with 28.9%, while resale apartment prices fell by 8.7% compared to June 2012. Across Spain the average price per square metre for a new apartments now stands at around EUR 1,407, while a resale apartment costs on average EUR 1,298 per square metre.

While this may be true for the “average” location in Spain, Marbella’s property market is still a cut above the rest, in terms of the quality of design and location as well as price. A 4-bed apartment in “average” Spain might cost around EUR 250,000, but in Marbella, where buyers are spoiled for choice with regard of the type of design on luxury apartment, penthouse or villa they can purchase in prime locations, a property of that size will cost from around EUR 695,000 upwards.

Prime locations include Cabopino in the west of Marbella, where luxury sea front apartments with 4 bedrooms and panoramic views command high prices, even as resale apartments. The complex of Los Granados is well designed, has 24 hour security, boasts indoor and outdoor pools and a community gym. Resale apartments in this part of Marbella tend to be very well furnished and tastefully decorated and constructed to a high specification.

However, with a little research and the will to think outside of the box, buyers can find little gems like villas that feature 12 bedrooms and a plot size of 2,300 square metres, costing just EUR 675,000. Suitable for conversion to a bed and breakfast establishment, this Cabopino villa is located at the beachfront near Cabopino Harbour. The main house boasts 4 bedrooms, while the guest or bed-and breakfast accommodation consists of a further 4 bungalows that boast 2 bedrooms each. The overall property has 7 bathrooms and is within a short walk of the beach and harbour. Buyers should calculate the purchase price plus 10% buying costs plus money for some refurbishment and bring decorations up to the latest standard.

Just like other parts of the Costa del Sol, Marbella saw a huge amount of development in the boom decade that saw far too many houses being constructed. Now there are many villas and apartment blocks that sit empty, unfinished and unsold. If you don’t mind getting involved in building works and refurbishments you can find some real bargains. A 4-bed villa in Cabopino for example that still needs finishing touches can be found for around EUR 550,000. Boasting sea and harbour views, and situated in a spacious plot, villas like this one, offer great family accommodation for those looking to permanently relocate to Marbella.

Over in tranquil Elviria, also in the east of Marbella, buyers with money to spend can find 4-bed villas located within a short stroll of the Santa Maria Golf Club for around EUR 1.7 million. Boasting 4 bedrooms and 4 bathrooms, accommodation that includes separate quarters for a maid, the villa sits in a sizeable plot of mature gardens with good sea views.

For the same price, also in Elviria, prospective buyers can also find villas with 7 bedrooms  or a house with 8 bedrooms that was constructed just 10 years ago.

Doing plenty of research and contacting several established and reputable agents will certainly pay off. Once buyers get a feel for what is on offer at what price in their chosen Marbella neighbourhood, it is just a question of looking at new versus old – or what newly build properties have to offer in comparison to resales. While resales are certainly winning on the price front, newly build properties boast a cleaner, more modern design and typically come with 100% mortgage offers for those who qualify under the strict new lending criteria.

If buying a luxury home in Marbella has been a long-held dream, why not do a little research on what’s on offer for under EUR 500,000? You’ll be amazed about the choice and quality!