Exploring Marbella’s Real Estate Trends in 2023
The past year, 2022, presented itself as a tale of two halves within the property market, displaying a dichotomy of trends. The pent-up demand for residential properties, a direct result of the pandemic's influence, surged unexpectedly into 2022, manifesting in an astounding 108% increase in passengers utilizing the Malaga-Costa del Sol Airport. However, despite surpassing the record-breaking property sales of 2021 at national, regional, and local levels, the latter half of 2022 witnessed a perceptible cooling in the market.
A Glance at the Current Landscape
As we set our sights on 2023, it is prudent to adopt a cautiously optimistic stance. While transaction volumes appear to have moderated, the average value of property sales continues its upward trajectory. Our proprietary data underscores this ascent, revealing that buyers allocated an average of 30% more towards their property acquisitions in 2022 compared to the preceding year.
The luxury property segment in Marbella painted a picture of resilience, with a notable 7.1% price increase in the past year, as affirmed by the renowned Prime International Residential Index (PIRI 100).
Shifting Dynamics
The paradigm shift from a seller's market to one favoring buyers is well underway. However, this transition is met with the challenge of limited prime inventory in key Marbella locales. This scarcity, magnified by the pandemic, serves as a stabilizing force for luxury property prices.
Remarkably, Marbella has yet to witness a noticeable influx of forced sellers, reinforcing the region's stability.
The allure of Marbella's luxury real estate market extends far and wide, attracting buyers from over 18 different nationalities. A noteworthy surge has been observed in Polish buyers' interest.
Despite global trends suggesting younger luxury property buyers, the average age of buyers in Marbella stood at 55 in 2022.
Market Pulsations
The concluding quarter of 2022 witnessed a dip in demand, attributed to mounting concerns about escalating interest rates in both our core markets and Spain at large. However, this dip was less pronounced in the high-end sector, as these buyers typically rely less on financing. When financing is sought, it often hinges on leveraging favorable borrowing conditions for tax optimizations.
Spain's magnetic pull on the world's affluent is evident, as it secures a position within the top three preferred locations for property acquisition. This finding, gleaned from a comprehensive survey involving over 500 private bankers, wealth advisors, family offices, and industry experts, reaffirms Spain's appeal.
Embracing Change
The evolution toward hybrid work models, coupled with the quest for an improved work-life equilibrium following the pandemic, continues to shine the spotlight on Marbella.
Distinct from mainstream housing markets, the discretionary nature of the second-home market delineates its unique fundamentals. While a larger proportion of cash buyers mitigates exposure to escalating mortgage costs, it doesn't eliminate it entirely.
Diverse Buyer Profiles
In 2022, foreign buyers constituted 13.75% of all property transactions in Spain, marking a 2.95% increase from the previous year. This also marks the tenth consecutive year with 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 sought-after areas include Marbella Golden Mile, La Zagaleta, Nueva Andalucia, and La Quinta. Anticipated growth in demand is predicted for El Madroñal, El Paraiso, Los Flamingos, Estepona town, and Marbella East.
It's important to highlight 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 consistent, centered on the desire for hassle-free, ready-to-move-in properties. Turnkey villas, which historically faced challenges, have gained traction in the mid-market segment. However, those at the higher end still experience a slower pace of sale during their construction phases.
Key trends include:
- Increasing families seeking international schools.
- Apartments boasting resort-like amenities.
- A focus on spacious interiors.
- Preference for new builds or move-in-ready homes.
- Demand for secure, gated urban villas.
- Willingness to pay extra for Branded Residences with added services.
For further information, a diverse range of properties, and expert guidance in property acquisition in Sotogrande, Marbella, La Zagaleta, or Southern Spain, visit www.luxe-villa.com or reach out via email at info@luxe-villa.com.
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