Encouraged by signifiant growth in local and international demand, the commercial real estate sector in Spain has seen a remarkable shift in recent years
So I thought I'd look at the main reasons why the world and his wife are investing in Marbella:
1. It must be weather and lifestyle.
2. Value for Money.
3. Safety. Marbella is probably one of the safest places on earth to live. Crime is so small you'd be hard push to find more than one report per week in the local newspaper and most of that is some drunk kicking off or gypsy crime!!!
For me I'm celebrating my third year in Bromley Estates Marbella. Three phenomenal years where I have been salesman of the year twice out of three!!! Mind you the first year shouldn't count as I started half way through the year.
A number of favourable market conditions are currently creating lucrative investment opportunities on the Costa del Sol; including better conditions and access to credit, improvements on the labour market, a fast-growing economy and falling unemployment. Market analysts predict steady price increases and rising demand construction until 2025, with a projected necessity for 100,000 new homes in Spain every year between now and 2020 to meet the rise in demand.
Last year, an analysis by Knight Frank found that demand for luxury properties increased by 78% since 2013. The average property price for luxury developments in Spain is currently at 2 million euros, 6% higher than during the worst year of the financial crisis. The region of Malaga, particularly the Costa del Sol, has seen a significant rise in demand in luxury property during this time. At present, 75% of properties worth more than one million euros are situated in just four Spanish regions: Madrid, Barcelona, Malaga and the Balearic Islands.
On the Costa del Sol, the most sought after developments are high-end modern and contemporary luxury villas with sea views, private swimming pools and within close proximity to the coastline. Prices of luxury developments on the Costa del Sol currently range between 600,000 to 2,000,000 euros, up to 10 million euros.
Värde, Castlelake and Lone Star are among recent property developers and fund managers to return to the market as foreign investment continues to flow into Spanish real estate. Other large investment groups that have recently been drawn to the lucrative property market on the Costa del Sol specifically include the W Chain, a leading luxury hotel chain that forms part of the Starwood-Marriott conglomerate, will unveil a 350 million euro luxury project expected to open in 2021. Apollo, one of the largest fund managers in the world, also recently announced plans to invest 1,000 million euros to acquire real estate assets in Spain.