East Marbella property report 2008

This much sought-after area, which is located only 20 minutes drive from Málaga Airport and 15 minutes from the centre of Marbella, is renowned for some of the best beaches on the coast, the green environment with many pine forests, exclusive beach clubs, luxury five star hotels and excellent golf courses. It is also a long established and established residential area.

Last year, many local agents recorded the best year ever with sales up by 50%. Currently the market is stable recording a slight increase of approximately 5% in prices for villas and about the same percentage for apartments. Newly built properties of good qualities are much sought-after.

The amount of luxurious apartments and penthouses available for sale is limited and the demand is higher than the supply. Properties with unrealistic prices stay on the market for longer.

The most requested properties are villas, penthouses and luxurious, spacious apartments with average prices for an apartment in good quality of around €4 400.000 € up to €1.8 million euros for a villa. Most property has, to date, been selling within a year, although property valued above €3 million will take longer to sell.

The most popular locations are beside or close to the beach and/or at golf courses.

The market is multi-national here with Spanish (25%), Germans (25%), British (15%), Irish (10%), Scandinavians (10%) and Benelux 10%. The average spend tends to be high with all nationalities spending over €1 million apart from the Spanish, who will spend on average under €1 million.

There is a large family market especially due to the excellent international schools in the area, which also attracts the retired market due to the tranquillity and the fantastic infrastructure. Approximately 40% of buyers use their property as their first residence.

The most popular areas are Hacienda Las Chapas, Los Monteros and Elviria and the local office advises buyers, who are looking for opportunities, to focus on the areas of Marbesa and El Rosario.

Local agents are looking forward to a stable market in 2008.The mid to upper market segment remains unaffected. Clients are well informed about the market and prices. Good quality properties, the excellent infrastructure of the area as well as the proximity to the city centre are major attractions for property buyers.

However, clients who need to buy with a mortgage will find financing more difficult this year as bank valuations are now very strict and banks are following more rigid lending criteria than before.

East Marbella Property Prices

TYPEAV. PRICE €PRICE INCREASE 2006 VS. 2007AV SALE PERIOD IN MONTHS
Villa with views, 4 bed, 350m21.800.000 €5,5 %12 months
Villa no views, 4 bed, 350m21.300.000 €No change12 months
Apartment with views, 2 bed, 100m2400.000 €No change12 months
Apartment no views, 2 bed, 100m2300.000 €– 6,25 %12 months
Country house, 3 bed, 350m2700.000 €No change12 months
Townhouse, 3 bed, 180m2600.000 €No change12 months
Plot m2350 €No change12 months

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About Mark Stücklin

Mark Stücklin is a Barcelona-based property market analyst and consultant, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on ms@spanishpropertyinsight.com.