Staff Reporter
MARBELLA has truly entered the ‘Ivy League’ of true ultra-luxury destinations, insists a new study of the resort.
It has entered the ‘hearts and minds of the most affluent classes on the planet’, and made it a place to live all-year round, as opposed to just taking holidays.
“Families of extraordinary wealth are spending more and more time in Marbella, and finding themselves increasingly among their circle,” writes Chris Clover, in his agency Panorama’s annual report.
“Hot spots show up every now and then, but few destinations in the world can really claim to be a consolidated ultra-prime residential destination.”
Marbella has won many prestigious accolades as a global resort and has also been recognised for its pristine beaches, having been awarded 11 Blue Flags this year (two more than last year) – and the most in Andalucia.
TOURISM: Brits lead the way, Germans are second, while Belgians and Americans have seen the largest growth
Quality tourism is not only important for the wealth it brings, but is the first step to introducing people to the area, many who later buy, continues the report.
Tourism numbers are impressive and soaring, with the resort breaking records this year, for example in March seeing 62,240 tourists staying in Marbella, bringing a 64% occupation rate.
Across Spain, records are also being broken and 2024 is expected to be considerably higher than in 2023 when 85 million tourists visited. Indeed, by the end of May, 33 million people had visited, an increase of 13.6% compared to 2023.
The UK continues to be the main source of arrivals with over 4.4 million people recorded, followed by Germany with 3.18 million and France just behind on 3.14 million.
The Belgian market has seen a growth of 25% and the US at nearly 15% so far in 2024.
Low season? What low season?
The low season in the winter months has virtually ceased to exist in Marbella, continues the report. “This has always been the potential of Marbella, and the reason we opened an agency here in 1970,” explains Clover.
Marbella has 165,871 registered inhabitants, from 153 countries, to which we must add the ‘floating population’ of tourists staying in their own homes and visiting hotels, which in the winter months alone, adds another 100,000 people to make around 265,000 inhabitants. By summer the figure is at least three times that.
In the first four months of 2024 there has been an 18% increase in visitors. The total of 8 million overnight stays indicates the virtual disappearance of seasonality in the market, with visits now spread more evenly throughout the year.
KEY MARKET INDICATORS: Market demand, supply and prices
Sales figures for 2023 were strong: both nationally, 12.3% higher than 2019 and locally, 24.5% higher.
The spike in sales in 2022 broke all previous records and was due to the pent-up demand created by Covid.
The two charts below show sales since 2007 on a national and local level, but also of the supply shortage: just compare the number of new homes built in 2007 (over 300,000) compared with those built last year (slightly over 60,000).
In 2023, 638,591 properties were sold in Spain of which 56,074 were new and 582,517 resale (used).
In Marbella, Estepona and Benahavis the total number of sales was 8,243, of which 708 were new and 7,535 resale.
What about prices?
Prices in Marbella have risen, on average, by 13.7% between June 2023 and June 2024, reaching a new all-time high of € 4.812/m2 – more than double the average asking price per square metre of 10 years ago, according to Idealista.
However, Marbella’s prices remain competitive. Of the 50 most costly municipalities in Spain, Marbella is only sixth, while Sant Josep in Ibiza comes top at €6,295/m2.
Globally, Marbella moved from 16th place in 2022 to 13th place in 2023, just ahead of Mallorca and Vancouver, as quoted in the Knight Frank 2024 Wealth Report, with Monaco the most expensive city to buy, at an average price of over €58,000 per square metre.
And as the chart below shows, you can get double the space in Marbella compared to Ibiza and three times that of Saint-Tropez.
Who is buying? Brits come top, Swedish second
British, Dutch, and Swedes are the top foreign buyers in Malaga, contributing to a third of all purchases in the province. British buyers lead with 15%, with the Dutch and Swedish buyers at 8% each.
A third (33.7%) of all properties sold in the province went to international buyers.
In Marbella, British investment has grown by an average of 20% over the past two years. Contrary to initial expectations following Brexit, British residential tourists continue to buy properties on the Costa del Sol, particularly in the luxury market.
Despite economic challenges, confidence in the Spanish market remains high and there has been resilient demand for quality homes, especially in golf-related properties.
In Marbella, Panorama’s sales over the last three years have been to clients of 45 nationalities, with the following percentages:
- United Kingdom: 18.58%
- Sweden: 10.78%
- The Netherlands: 8.5%
- Spain: 6.69%
- Belgium: 6.32%
- Germany: 5.95%
- USA 3.35%
- Denmark 2.97%
- France 2.97%
- Ireland 2.97%
- Poland 2.97%
- Russia 2.97%
33 other nationalities comprise the remaining 25%.
Conclusions.
- Marbella’s property market stands on the brink of a sustained period of exceptional growth. The market indicators consistently point towards a continued upward trajectory, with demand and investor confidence driving the market to new heights. We expect this momentum to increase in the coming years with a profound and sustained expansion phase
- The lack of supply coupled with an increasing demand, will continue to drive prices higher, but the increase in prices in the most expensive areas may be more moderate
- Prices are still competitive compared to other luxury destinations. Although prices in the ultra-prime areas have risen to record highs Marbella remains competitive
- The market’s success includes neighbouring areas. Estepona, Benahavís and other neighbouring municipalities along the whole Costa del Sol, will continue to enjoy an increasingly solid market
- There remains a lot of work ahead to maintain, preserve and especially improve the quality and sustainability of our environment and the professionalism and quality of our services in the private and public sectors.
- Quality of life is what really matters to us all. Sunshine matters. A friendly and welcoming community matters. A beautiful, well-cared-for environment matters. Great restaurants, year-round events and activities, music festivals and concerts, sporting competitions, sophisticated nightlife matter. And of course, quality properties are an essential ingredient of the formula.
You can read the full report here.
