Costa del Sol - Property on Marbella's Golden Mile

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

Marbella Golden Mile Property

Marbella’s Golden Mile remains one of the most established and mature markets along the Costa del Sol, which has successfully attracted top spending clients for the past decades. When Alfonso von Hohenlohe founded the famous “Marbella Club” in 1954, the former fishing village became an attraction for the international jet set.

Since then it has grown into a cosmopolitan resort town, a town which offers long established, elegant and tranquil residential areas, especially in the area of the “Golden Mile”. The amount of properties for sale on the Golden Mile, especially on the beach side has always been limited and demand is higher than the supply. However, properties coming onto the market with an unrealistic sale price will take longer to sell.

Our local office confirms that the market is stable with serious buyers and vendors focusing on top quality property in top locations. As the most expensive area in the whole of the Costa del Sol there is only limited stock, which is reflected by the fact that new houses tend to sell faster, particularly contemporary designer properties.

On the other hand older houses take longer to sell and vendors have to be realistic about pricing. However, most property is selling within the year to 18 months. The average sales price for apartment is in the Golden Mile and the immediate area is around €400,000 and 800,000 for a top quality apartment in a development with luxury amenities such as indoor pool, gym, sauna and security guards. The average spend for a villa is from €2 million.

Not surprisingly buyers here are very selective and well informed. They want property located mainly beach side with sea views and close to all the amenities with top quality materials and fittings or in one of the exclusive gated communities as the famous Sierra Blanca, Cascada de Camoján or Altos Reales. Here buyers regard separate accommodation for staff or guests as essential as well as a wine cellar, gym and sauna. Penthouses with sea views are also much in demand with prices starting at around € 1 million.

The market is multi-national and the main buyers are British (35%), Spanish (22%), German (18%), followed by other clients of all nationalities. The E&V office have seen more German buyers lately buyers lately and this is a developing market sector.

The age profile is changing and lowering with much younger, multi-millionaire clientele, which account for 15% of the overall market and approximately 50% of clients are aged between 40-50, many of which spend more time in the area because they can communicate with their base from a virtual office. A relatively new trend is for clients (approximately 30%) to settle with their families and use their home as a first residence and they tend to look for large, well located, modern houses.

The most requested areas are Sierra Blanca, Cascada de Camoján and along the beach of the Golden Mile. There is no average spend here as each client varies enormously in requirements and budget. However, the Russian clientele are currently among some of the bigger spenders with an average budget of €4-6 million.

The local office is confident that 2008 will be a good year reflecting the renewed confidence and stability here. Good investments in the area are older properties with potential for refurbishment and properties in the developing area of Los Altos de Puente Romano.