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Marbella property market report 2010
Marbella Property market report 2010-2011 The real estate market in Marbella has been exposed to big changes in recent years. The market today recovered and the property sales in 2010 grew by 26% in relation to 2009
The real estate market in Marbella has been exposed to big changes in recent years. After its peak in 2005 and the World crises, the market today recovered and the property sales in 2010 grew by 26% in relation to 2009.
How much have the prices of properties in Marbella dropped from their peak prices in 2005?
By looking at the price change of properties in Marbella, one must refer to the location and areas; the better the location, the better is the market. In prime locations such as Sierra Blanca, Los Monteros, the Golden Mile and the beachside of Marbella, where the demand for properties is higher than the supply, the prices for villas have declined by around 10% and prices for apartments around 15%.
In general, owners are much more realistic today than in the past. Many owners adapted their asking prices to the market in order to sell their properties as the buyers today are much more informed about prices and availability than before. However, many potential buyers are still offering very low prices on these already reduced properties and these offers are mostly rejected and owners will refuse to even consider negotiation.
In the areas of Marbella Golden Mile, Sierra Blanca, Marbella Hill Club and the beachside of Marbella, there are not many new constructed properties and the demand has always been very stable; therefore owners do not tend to drop the prices, however, they are more realistic regarding the asking price. Unique properties such as modern villas or properties on beachfront position have kept their value. In the areas of Nagüeles and Las Lomas, the supply of apartments is slightly higher so that prices for apartments declined up to 20% from the peak prices in 2004-2005.
In the East side of Marbella the supply is slightly higher than on the Golden Mile as the area offers new developments of apartments and townhouses especially in the areas of Santa Clara, La Mairena, Los Altos de Los Monteros and Elviria. On the new developments, prices have declined around 20% to 25% from the asking prices in 2005. But also in the Eastern part of Marbella we should differentiate the areas. In Los Monteros there are very few properties on the market and the demand is very stable; also in Elviria there is a high demand for properties, however, in this area the supply is higher, although mostly older villas are offered for sale. Modern, newly built villas with high quality materials still find buyers easier if the asking price is realistic. Apartments in the communities of Elviria Hills, Hacienda Elviria and Hacienda Playa are always highly requested; properties that are offered at market prices will be sold in a short period. In the area of El Rosario there are, at the moment, many properties on the market. The majority of these properties are over 15 years old and buyers in general are searching for newly built properties. These villas can be sold in this market only if the prices are low and attractive.
Clearly there is a continuing and increasing demand of clients who wish to buy property in Marbella. The movement of the market in the last 12 months resulted in 26% more sales than the previous year. People who found the right property and preferred to wait for a further price drop, found out that the property was sold and a similar property is no longer available on the market. In the sought-after communities there are just a few available properties on the market and the continuing demand will defiantly prevent a further price drop.
The demand for off-plan properties has almost disappeared completely due to many newly built properties that are still offered for sale and buyers prefer to invest in a property which is already built and has all the licenses.
In general, this area of Spain was less affected compared to the rest of the country due to the continued demand from the international market, the climate and the short flight time from various countries in Europe, the high level of stability and quality tourism and residential tourism, all these factors will provide strength for a quicker and stable recovery.
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Engel & Völkers is one of the world's leading real estate agency specialising in the sales of exclusive properties. With 3 offices in Marbella, Engel & Völkers is offering the most exclusive selection of Properties for sale in Marbella