In the realm of real estate, 2022 revealed a tale of two contrasting periods, painting a vivid picture of trends within the property market. The year commenced with a remarkable surge in demand for residential properties, attributed directly to the pandemic’s influence. Unexpectedly, this surge persisted well into the year, culminating in an astonishing 108% increase in travelers passing through the Malaga-Costa del Sol Airport.
A Glimpse at the Present Landscape
As we shift our focus towards 2023, adopting a cautiously optimistic stance appears wise. While transaction volumes seem to have stabilized, the average value of property sales continues its upward trajectory. Our exclusive data further confirms this ascent, highlighting that buyers allocated an average of 30% more toward their property purchases in 2022 compared to the year before.
Remarkably, the luxury property sector in Marbella exhibited resilience, boasting an impressive 7.1% price increase over the past year. This affirmation comes from the esteemed Prime International Residential Index (PIRI 100).
Changing Dynamics
The shift from a seller’s market to one favoring buyers is well underway. However, this transition is accompanied by the challenge of limited prime inventory in key Marbella areas. This scarcity, intensified by the pandemic, acts as a stabilizing force for luxury property prices.
Interestingly, Marbella has yet to witness a significant influx of forced sellers, contributing to the region’s stability.
Marbella’s alluring luxury real estate market casts a wide net, attracting buyers from over 18 different nationalities. Notably, a surge in interest has been noted among Polish buyers.
Despite global trends indicating younger luxury property buyers, the average age of buyers in Marbella stood at 55 in 2022.
Market Insights
The final quarter of 2022 witnessed a decrease in demand, attributed to growing concerns about rising interest rates in both our core markets and Spain as a whole. However, this decrease was less pronounced in the high-end sector, as these buyers typically rely less on financing. When financing is pursued, it often hinges on leveraging favorable borrowing conditions for tax optimizations.
Spain’s magnetic pull on the world’s affluent is evident, securing a spot within the top three preferred locations for property acquisition. This insight, drawn from a comprehensive survey involving over 500 private bankers, wealth advisors, family offices, and industry experts, reaffirms Spain’s allure.
Embracing Transformation
The shift towards hybrid work models, combined with the pursuit of an improved work-life balance following the pandemic, continues to cast Marbella in a positive light.
Diverging from mainstream housing markets, the discretionary nature of the second-home market outlines its distinct fundamentals. While a larger percentage of cash buyers mitigates exposure to escalating mortgage expenses, it doesn’t eliminate it entirely.
Diverse Buyer Profiles
In 2022, foreign buyers accounted for 13.75% of all property transactions in Spain, marking a 2.95% increase from the previous year. This also marks the tenth consecutive year of foreign buyers surpassing the 10% threshold.
A fascination with new builds characterized the top three foreign buyer nationalities in Spain for 2022:
Belgium: 24.5%
Netherlands: 21.90%
Poland: 21.30% (Source: Registradores)
In the Malaga province, the leading foreign buyer nationalities for 2022 were:
UK: 16%
Sweden: 12%
Netherlands: 8% (Source: Registradores)
Local Trends and Focal Points
Consistently coveted areas encompass Marbella Golden Mile, La Zagaleta, Nueva Andalucia, and La Quinta. Anticipated growth in demand is foreseen for El Madroñal, El Paraiso, Los Flamingos, Estepona town, and Marbella East.
It’s essential to emphasize that while Marbella remains a prime choice for second-hand properties, Estepona takes the lead in new builds due to available land and streamlined building license processes.
Understanding Buyer Desires
Buyer preferences have remained relatively steady, centered around the aspiration for hassle-free, move-in-ready properties. Turnkey villas, which historically faced challenges, are gaining traction in the mid-market segment. However, those at the higher end still experience a slower sales pace during their construction phases.
Key trends encompass:
Growing families seeking international schools.
Apartments offering resort-like amenities.
Emphasis on spacious interiors.
Favoring new builds or ready-to-move-in homes.
Demand for secure, gated urban villas.
Willingness to pay extra for Branded Residences with added services.
Stefan Katafai offers a personalized approach to help you find the perfect property in Marbella that aligns with your budget and preferences. With his extensive network and market knowledge, Stefan will conduct a tailored search to identify suitable options for you, whether you’re interested in a luxurious villa, a beachfront apartment, or a charming townhouse.
Navigating the complex real estate market in Marbella can be daunting, but with Stefan’s guidance, you can proceed with confidence. He will provide comprehensive information about potential properties, including their location, amenities, market value, and investment potential. Stefan’s expertise in negotiations and deal structuring ensures that you make well-informed decisions and secure the best possible deal.
In addition to property search and acquisition, Stefan can assist you with other aspects of the purchase process. Whether it’s property reform, legal matters, or connecting with trusted professionals like lawyers, architects, and contractors, he has a wide network of contacts to streamline the experience for you.
If you’re considering a real estate investment in Marbella, reach out to Stefan Katafai today to discuss your requirements and benefit from his expertise. With his personalized approach and commitment to client satisfaction, Stefan will guide you towards a profitable and successful investment in the beautiful region of Marbella.
Contact information:
Stefan Katafai
Phone: +34 637 973742
Email: [email protected]
Website: Agent4stars.com
