Since the roaring twenties some of Europe’s finest glamour resorts have enjoyed the attention and property-buying custom of the international jet-set. The Italian Lakes and the French Riviera are still among the most expensive holiday home destinations for buyers to invest, but Marbella’s luxury property in prime locations has started to undercut all her rivals.
Nick Stuart, director of Spanish Hot Properties, an estate agency based in Marbella at the Costa del Sol, recently outlined how affordable Marbella property has become.
“”It’s tricky to compare apples with apples, but if you look at prime Cóte d’Azur such as Cannes, St Tropez and Villefranche, a luxury coastal villa can be priced anything between EUR 20,000 and EUR 40,000 per square metre.” Nick Stuart explained. “Mallorca dips a little lower at EUR 10,000 to EUR 20,000 per square metre with the Italian Lakes around EUR 10,000.”
Prime property in Marbella, on the other hand, even in the best locations, comes at the fraction of that price. “Even in Sierra Blanca, the coveted hillside community set above Marbella’s Golden Mile, the area’s best address, prices hover between the EUR 3,000 and EUR 7,000 per square meter mark,” Nick added.
Marbella luxury property has certainly become a lot more affordable. The Costa del Sol enjoys higher temperatures and more sunshine hours per year than either the Italian or the French Riviera. Accessibility is another factor working in Marbella’s favour. With year-round, cheap direct flight routes from North Africa and North America, Russia and Europe’s North, the Costa del Sol resort can boast the best of everything – with prices that undercut its European rivals considerably.
Russian travellers in particular are only just beginning to discover Spain as a holiday destination. After a couple of visits those with the funds in place to purchase a second home are often looking for something a little bit different. Last October one million Russian tourists arrived in Spain and Russia’s Ambassador to Madrid, Mr Korchagin, recently commented on the advantages a relaxation of immigration and residency legislation will have for Spain.
“Of course, there would undoubtedly be more opportunities,” the Ambassador said, adding that residency for non-European property buyers investing more than EUR 160,000 into Spanish property would encourage far more of his fellow countrymen and women to choose real estate in Spain, thus bringing down the unsold housing surplus.
The news provider El Mundo reported that, if the latest official data was anything to go by, some 1,645 second homes were purchased by Russian buyers in 2012, accounting for 7.68% of all foreign property purchases. The areas most favoured by Russian buyers are the Balearic Islands, the Costa Brava and Costa del Sol as well as the Levante. Those with more money to spend head to the Costa del Sol with Marbella as their focus for a luxury property search.
Already the Spanish government’s the new incentive is being dubbed the “property passport” by some. Russian buyers are fast catching up with their British, German and French counterparts, snapping up Marbella property in prime locations like the Sierra Blanca, the New Golden Mile or at Puerto Banus Marina itself.
Overall the Malaga province has seen sales rise thanks to foreign investment. Municipalities like Manilva saw property sales double and Estepona, a resort in close proximity to Marbella, saw a 16.4% increase to its sales. Marbella, Mijas, Fuengirola and traditional Torremolinos all saw better sales activity last year.
While Mijas and Torremolinos attract a very different expatriate buyer than Estepona, Fuengirola and Marbella, the underlying reasons for a buying decision are still the same. The Costa del in particular and Spain in general are safe areas to invest in, as tourism numbers are going up every year, practically guaranteeing a good rental return on second home investments used as holiday lets.
For an investment of around EUR 500,000 or less Marbella’s luxury apartment sector offers incredible value for money. At Los Monteros Playa holiday rentals of a 3-bed luxury apartment with access to communal swimming pools and close proximity to the beach are between EUR 2,750 and EUR 3,250 per week – on an investment that might have only cost EUR 240,000.