REAL ESTATE MARKET OVERVIEW IN SPAIN
Costa del Sol in Spain extends from Nerja in the northeast down to Algeciras in the southwest, and running up to 10 miles inland. Its heart and soul is Marbella, a cosmopolitan city of almost 150,000 near the geographic centre of that stretch.
The main real estate area is the seaside “Golden Mile” from Marbella to Puerto Banús, a strip of several miles developed with five-star resorts and apartment complexes. The few villas there are in high demand and can command prices as high as 10 million Euros.
For example a two-bedroom apartments on the “Golden Mile” can be found for as little as 300,000 Euros.
While the Costa del Sol suffered, like the rest of Spain, after the 2008 global real estate crisis, with home prices typically falling 15% to 20 %, Marbella was one of the first places to make progress. The market is now even seeing price increases in more popular enclaves.
Other parts of the Costa del Sol, particularly the area between Marbella and Málaga, which was popular among British tourists in the 1960s and ’70s, are significantly lower priced and have not fared as well since the 2008 crisis.
Benahavís is a small town, but has several well-regarded residential areas, such as El Madroñal, La Zagaleta, La Alqueria, La Quinta and El Paraiso, which represent about 90 % of the municipality’s area. Prices have recovered fully since the 2008 crisis, and now villas range from about 700,000 Euros to 18 million Euros.
The 2008 global real estate crisis and the British vote in June to leave the European Union have both affected the composition of foreign buyers on the Costa del Sol.
Before it used to be one-third Spanish buyers, one-third British buyers and one-third mixed buyers. Now, it’s very assorted.
Buyers are coming from the Middle East, Scandinavia, the Netherlands, Belgium, Germany, France, Switzerland and Russia; North Americans are buying, but not in large numbers. While Chinese buyers are still not numerous, there are more of them than ever before.
There are no restrictions on foreign home buyers in Spain; however, they must obtain an identification number, a simple cheap process.