Marbella off-plan villas selling faster than ever.
New market research confirms what Altavista Property has seen first-hand in the Marbella property market for some time now—new build apartments and villas for sale on the Costa del Sol are selling fast, with the average time taken to sell a development having halved in recent months. Of the projects surveyed by consultants Aguirre Newman the average time taken to sell out a development between May 2015 and May 2016 was 52 months, compared to 104 months in the preceding 12 months. The methodology was not disclosed, but presumably was based on numbers of sales in those periods extrapolated to show how long it would take to sell out if trends continued at the same pace. Star performers were what are termed single-family (unifamiliar) homes—in other words villas and townhouses. These off plan developments took just 23 months to sell compared to 55 months in the May 2014/May2015 period—again a statistic that closely matches our experience. These figures indicate a surge in demand, one that promoters are only too ready to cater for—the number of new developments has increased by 69% on the Costa del Sol compared to a year ago.
Value for money villas on the Costa del Sol
The study also shows that buyers—particularly of apartments—are getting a lot more for their money, with most new projects focusing on spacious interiors, particularly when compared to projects from 2006, when land prices were at a peak, forcing developers to try to maximise returns by building smaller units. For example, the average price of an apartment in a new development is €223,050, with a corresponding average size of 133m2, which works out at €1,680/m2. With regard to villas and townhouses—which have been selling particularly quickly, especially in the most sought after areas of Marbella—the average size is now 425m2 costing €1,007,694 for a square metre average of €2,372/m2. Showing that demand is outstripping supply right now, these single-family homes increased in price by 39% over the period—which is also an indication that promoters are concentrating on very high quality properties that are of course more expensive to build. This sort of home has proved to be very popular with off-plan purchasers, particularly Scandinavians, Belgians, British and Germans. Indeed, the La Montesa de Marbella project we recently promoted sold out to buyers from mainly these countries within just a few months. The Aguirre Newman report confirmed that Marbella and Estepona were the prime areas for new developments in terms of quantity, while the market for building plots was also accelerating as investors move to meet the demand for premium new homes. Michael Liggan, CEO of Altavista Property, commented: “This report is further confirmation that the prime real estate market of Marbella is on an upward trend. We have seen properties that meet the right criteria—quality and location being the main ones—sell well, and we expect this trend to continue for the foreseeable future. There is no doubt in my mind that prices of luxury apartments will follow those of quality villas in rising, making this a very good time to buy.” For more information on off-plan investment opportunities in Marbella and the Costa del Sol please contact us—Altavista Property is the leading marketer of new build developments in the area.
We’ve known for a while that the property market on the Costa Del Sol has really been picking up, but now it’s reaching almost unprecedented levels!
New builds and off plan properties are particularly popular at present, with many individuals – and particularly family units – choosing to purchase a brand new property in which they will be the first ever residents, making their own personal mark on their new home before anyone else. Off plan property is an especially exciting prospect, as, in many cases, buyers can witness their new home appear before their very eyes.
After falling slightly towards the tail end of 2016, the market has experienced a sudden boom beginning in the first two quarters of last year and continuing to the present time. A number of areas, including Marbella, Benahavís and Estepona, have seen a huge increase – combined, they have shown a rise of more than 14% compared to the same time period in 2016.
Uncertainty was fairly common throughout the latter days of 2016, as the Brexit vote rendered many prospective British expats unsure of the ongoing potential to purchase homes abroad, but this cautiousness seems to have dissolved somewhat. As a matter of fact, demand for higher valued villas, surpassing the €4,000,000 mark, has now picked up considerably despite an unexpected downturn – again in 2016.
The local economy in Spain continues to grow, and the south coast will always be among the most sought after locations on the map. This is likely to continue to push sales forward, particularly in the region of off plan property, which seems set to take up more than 60% of the market in coming months. Prospective property investors will find the current climate particularly attractive, as the market will only continue to rise while interest rates are at an almost unprecedented low – with an increase due within the next two years. Demand for property will continue on an upward trend, and developers will be ramping up supply to meet it, particularly at the “top end” of the market as more and more beautiful projects are completed with others always in the pipeline. So it’s certainly the time to start buying.
Despite a slight wobble after the EU referendum, it is looking as though the property market in Marbella is now going from strength to strength. If you have been dreaming of moving to these incredible sunwashed shores, it’s the perfect time to take the leap. For further information surrounding the properties that are available through AltaVista, including villas, apartments and townhouses all nestled along the golden shoreline or perched amongst the green hills looking over the ocean, all you need to do is get in touch with one of our expert advisors today on +44 2036 954 027 or email info@altavistaproperty.com today to find out about available properties and discuss your requirements. You never know – construction work could be starting on your ideal home as you read this.
