Let us take you back to the beginnings of Marbella, a small, charming fishing village to the East of Malaga, which was liberated from piracy in 1830, after the French conquest of northern Europe, when it was known as Magreb.
It was discovered by Spanish aristocrats in the 30s, as part of the “Grand Tour”, in which tradesmen and travellers from the United States and northern Europe stopped to admire the marvellous mountain ranges and stunning Mediterranean coasts before parting for Greece or Italy. It was with the arrival of this Jet Set wave that Marbella became an international hub for glamour.
A few years later, prince Alfonso Von Hohenlohe established himself in an estate east of the village, where he built a villa and, later, a guesthouse that would later become the renowned Marbella Club Hotel. https://www.marbellaclub.com/en/
Famous for its style and location, Marbella Club Hotel became a hot destination for celebrities and high society, from Frank Sinatra, Brigitte Bardot, Gunilla Von Bismark, Jaime de Mora y Aragon and Sean Connery, to the Saudi royalty and European high aristocracy.
It was then when the famous Golden Mile was established, which connected Marbella and Puerto Banus (1970), where luxury villas were beginning to be built, the Hotel Puente Romano was on its way and the most elegant parties were being thrown in Marbella. This was when it became a legend. https://www.puenteromano.com/
In 2010, the real estate market in Marbella declined and did not begin to rise again until 2012, two years before the rest of Spain. Now it is observed that the Marbella- Benahavís- Estepona area has risen in 10.4% in sales since 2017, whilst the rest of Spain is still 21% behind.
Closing in on these three municipalities, it can be appreciated that Estepona increased in the previous year by a 28.3% in sales while Marbella did so in 6.9%. According to the last figures, this is mainly due to the fact that Estepona counts with more available developable land and consolidated urban plot, the prices of homes and land are lower in Estepona, plus, in Marbella, there are year-long waits or longer in the concession of licences to build. Meanwhile, in Benehavís, 499 acquisitions were finalised, which represents 6.7% of the 7,748 acquisitions finalised in the three municipalities jointly.
Regarding the price of the home, there still exist areas that are below the peaks of 2006 and 2007. However, the demand in the more coveted areas of Marbella is topping the supply, due to them being completely consolidated.
Another highly coveted area is the “Casablanca” compound, where prices have almost doubled. Moreover, La Costa Del Sol, and particularly Marbella, is one of the locations which most impulses residential real estate. In fact, the National Institute of Statistics (INE) confirms that Malaga is the fourth province in Spain where homes changed hands during 2017 (30,064 against the 15,917 in the Balearic Islands), only topped by Madrid, Barcelona and Alicante.
On the other hand, the segments of the market that enjoy the most stability and strength are the apartments worth between 200,000 and 1,500,000 and villas between 700,000 and 2,500,000. Many of the homes located in the best residential areas which were built 20 or 30 years ago or more, are being sold either to be demolished and rebuilt or to be reformed completely.
Due to this favourable data, 61 new property projects exist in the areas of Marbella, Estepona, Benehavís and Ojén, which are for sale since 2016. These new promotions offer properties in a price range of 200,000 and 4,000,000 and constitute a total of 2,657 properties.
Of these properties, 61% have already been sold, or are in the process of being sold, and a considerable quantity is still in stages of construction.
Aside from this, the price of rent has also risen 20.8% in a year at the same time as experiencing an increase in demand.
Without a doubt, the strength of the market in Marbella can be distinguished from the rest of Spain because of the extraordinary diversity of nationalities of the buyers. Proof of this is that tourism has beaten records for the fifth consecutive year in Spain. This has affected La Costa Del Sol, with historic increases in registered flight arrivals to the airport of Málaga with more than 18.5 million passengers in 2018, which supposes an increase of 11.7% in comparison to the arrivals in 2016.”
Marbella is the centre of attention of great investors and the increase of its accommodation offer is now a reality.
Renowned projects like the construction of Hotel W Marbella Resort by Platinum Estates and Marriott International, in the marvellous beaches of the east of Marbella, as well as Magna Invest advancing in the construction for the reopening of the emblematic Hotel Don Miguel with an investment rounding 300 million, under the management of Club Med. Robert de Niro and Nobu Group also focused their attention to Marbella with the opening of a hotel and restaurant in 2017. https://www.noburestaurants.com/marbella/home/
Marbella…will always be Marbella, and the proof is its history, from its beginnings to our days, where potential investors continue to bet on the future of this magical city.
Statistics tell and show that investing in property in Marbella is of sure value, its long-term projections are backed up and the development of the neighbouring areas is giving much to talk about, from the Cala de Mijas to Sotogrande, an international luxury destination, with its cultural roots, gastronomy and famous microclimate.