Costa del Sol - East Marbella Property

2008 report

This report was prepared by Engel & Völkers, a real estate agency with offices in many of Spain’s most popular destinations. It is reproduced here with permission. More information on Englel & Völkers

East Marbella Property

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, the local office, which is based in Elviria, recorded its 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.

The local office situated in Elviria is 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. However, as Engel & Völkers is a large multi national company with a worldwide network it is well placed to promote to all markets.