If we were to wax lyrical about Marbella’s standing as a premier luxury destination associated with glamour, wealth and celebrity since the 1950s, you may think that it is old news and irrelevant today. However, this could not be further from the truth!
5-star destination since the 1950s
Many of the celebrities who visited the Marbella Club Hotel in the 1950s, decided to purchase luxury properties in Nueva Andalucía. Similarly, today, 5-star tourism attracts the world’s most affluent visitors, introducing them to the delights of Marbella, and many go on to purchase the exclusive luxury villas for sale in Marbella.
High end tourism
Marbella’s profile has never been higher, nor has the level of interest in premium Marbella real estate. As reported in Diariosur.es, during the last 12 months, there has been an increase in tourists from North America and the Middle East, both of these sectors are drawn to premium standard holiday accommodation and also the more exclusive property for sale in Marbella.
US interest in Marbella
Property portal idealista.com published figures from an American property report, which show 3.8 million US citizens visited Spain in 2023 an increase of 23.7 per cent upon 2022, spending 8€ billion, a 50 per cent more upon the previous year. The Costa del Sol welcomed 174,951 US visitors in 2023 (26.6 per cent increase upon 2022), due to the new direct flights between New York and Málaga’s international airport. By the end of 2024, there will be 24 direct flights from the US to five Spanish airports.
The same American report pegged Marbella property prices at an average of €4,533/m2 in February 2024 and ranks Marbella as the sixteenth most expensive city in the world, ahead of Dubai and Madrid. It also suggests that renovated villas in Marbella and new developments can achieve a sale price of up to 28,600€ per square metre.
Overall increase in tourism
Figures provided by the National Institute of Statistics show that the Costa del Sol saw at total of 14 million tourists throughout 2023, higher than any other year. So far, in the first quarter of 2024 (including the historically quieter months of January and February), there was 18 per cent increase in visitors to the area compared to the previous year, with over 8,010,003 over night stays in hotels and registered holiday accommodation. Sur in English reported that hotel occupancy in June reached 87 per cent and July 90 per cent. The figures for August are expected to be higher, but have yet to be published at the time of writing.
Marbella is at the top of its game
It is not surprising that Marbella is seeing record number of visitors…over the last few years, Marbella has been bestowed with a number of prestigious accolades. In 2022, Marbella was named as the European Best Destination in 2022 and also as the second-Best Overall Destination, above the glitzy hotspots of Monte Carlo and Capri.
In April this year (2024), Marbella was once again named as the Best Overall Destination, out of 400 locations. Europeanbestdestinations.com website based the award on the votes of over 1million experienced travellers who placed Marbella in pole position, taking into account the city’s 5-star hotels, 11 Blue Flag beaches, nightlife, golf courses and country clubs, outdoor activities, nature, shopping, wellness, and the superb climate making it an all-year round resort.
800€ million of investment in Marbella
Marbella’s Mayor, Ángeles Muñoz, has forecast that there will be approximately an investment of 800€million in construction licences throughout 2024, and that the city’s municipal revenues generated from Construction, Installations, and Works Tax (or ICIO) are expected to exceed 32€ million, 6€ million more than in 2023.
Demand and supply of property for sale in Marbella
The cost-of-living crisis and high interest rates experienced throughout Europe in recent years have not affected the luxury property market in Marbella, as 10 per cent of purchasers buy luxury Marbella real estate with a mortgage. According to the Spanish Ministry of Public Works, in the first quarter of 2024, high-end property sales in Marbella, Estepona and Benahavís (collectively known as the ‘golden triangle’), are 1947 per cent higher than in 2019 (pre-pandemic).
In a summary of the premium property market in Marbella published by the Bank of Spain, it was suggested that the price of housing will continue to rise due to the high cost of construction and resultant scarcity of new housing stock and the favourable financial position of buyers in the high-end market. This will be the case, regardless of the number of properties approved for construction or the number of sales. With the reduction of interest rates by the ECB in June 2024, the situation will be compounded.
In other words, the appetite for luxury villas for sale in Marbella will never be sated… it is just not possible to build enough high-end properties to satisfy the demand.
Whether you are looking for luxury villas for sale in Marbella, a beachfront apartment or a mansion in La Zagaleta Benahavís, if you would like more information about property for sale on the Costa del Sol, as a holiday home, Marbella & Co should be your first port of call. Visit our website, call + 34 952 865 525 or email info@marbellaco.com.
FAQs
Marbella & Co’s experienced team of real estate agents can help you find the perfect villa for sale in Marbella, Spain, but this is not the only area that we specialise in. We work with a network of real estate agents on the Costa del Sol, allowing us access to the best property to buy on the Costa del Sol. We cover all areas, so we can help you purchase Marbella real estate, property in Fuengirola, Benalmadena property for sale, La Duquesa property, Casares property, and we can even help you source the perfect villa for sale in Sotogrande.
Marbella has been a favourite destination for wealthy visitors and investors since the 1950s, and is due to continue for many years to come. Savvy investors continue to look towards luxury real estate in Marbella and its neighbours, Benahavís and Estepona, which together are known as the Costa del Sol’s ‘golden triangle’. However, there are many other attractive areas, lifestyle resorts, golf properties and exclusive enclaves along the coast. Get in touch and our experienced agents will be happy to apprise you of the best investment opportunities.
Yes, our team of experienced property advisors can help you find the best golf properties in Marbella. There are over 21 exclusive golf courses in Marbella and local vicinity, including Marbella Golf Country Club, La Quinta Golf & Country Club, Santa Clara Golf and many more, offering a wide choice of golf apartments and villas to suit all tastes and budgets. Get in touch to find out about the golf resorts on the Costa del Sol.
