Marbella leading the recovery of Spain’s property market
New figures show more properties were sold in the Marbella region last year than at the market’s pre-recession peak
Marbella’s property market performed better than any other region in Spain during 2014, new figures show.
According to data released by the Spanish National Statistics Institute, sales in Malaga province increased by 20%, against a national average of 4%.
Nearly a third of all the properties sold in the province were in the so-called Golden Triangle of Marbella, Estepona and Benahavis, which saw an incredible 6,821 properties sold last year, exceeding the 2007 pre-crisis levels.
Meanwhile, asking prices in Marbella have risen by an average 9%, meaning they are now only 17% below their peak pre-recession prices.
The demand is being fuelled by overseas buyers – the number of foreigners purchasing in Malaga province increased by 14.5% last year, to reach a record 14% of market share.
Of the 23,929 homes sold in the region, 38% were bought by expats. This British were the number one foreign market, making 28% more property purchases than they did in 2013. The second biggest buyers were Scandinavians, followed by French, Dutch, Germans and Russians.
“Foreign investors are definitely leading the recovery here in Marbella,” says Mary Dunne, Managing Director of MP Dunne Properties. “They are buying both second homes and investment property, because they recognise the perennial popularity and allure of this destination. With the recovery of the wider Spanish economy, there is only one way prices can go here, and that’s up.”
Mary adds that although there was once a glut of new builds in the region, the pipeline is now starting to dry up. This is backed up by figures that show new home sales fell 10% in Malaga province, while re-sales rose 50%.
“It’s very obvious that supply is starting to dry up,” she says. “We’ve got clients looking to buy and we actually don’t have product for them. The market could be performing even better if there were more high quality developments underway.”
MP Dunne Properties is marketing a handful of off-plan properties, including a new high-end residential complex to be built on Marbella’s glamorous Golden Mile (pictured above), and a luxurious 5 Bedroom Villa in Nueva Andalucia.
Says Mary: “It is the high-end properties in particular – one million euros plus – that we are selling and not replacing. Demand for this type of property is definitely outstripping supply, so I’ve little doubt that prices will continue to rise steadily.”