Time to upgrade to a Marbella home.
The property market crash that hit Spain and large parts of the world was a painful experience at the time, but now as the market continues its recovery it has turned into an opportunity for many homebuyers, and has allowed them to invest in that most valuable of commodities—space. At the peak of the property boom demand was focused on two-bedroom apartments—largely due to the high square metre prices commanded at the time and the overwhelming focus on holiday usage. Developers too were forced by high land prices to focus on smaller apartments in order to put as many units as possible on a plot and so maximise profit—so much so that between 2005 and 2008 some 80% of apartments being built were one or two bedroomed, with another 10% studios*. Three-bedroom new builds were rare and new four-bedroom apartments were almost non-existent. Floorspace was also at a premium, with even three-bedroom apartments on the small side—around about 80m2* was becoming the norm. But with the property crash came a change in emphasis within the market. Now those looking for a new build can afford to pay extra for more space—meaning 130m2 is more like the norm for a three-bedroom apartment, while many two-bedroom properties are in excess of 100m2. With real estate much more affordable now—according to the European Commission a ‘standard’ 100m2 home costs 10.1 years of the average Spaniard’s income compared to 15.6 years in 2007—the opportunity is there to acquire a larger property. Simultaneously there has also been another trend—one for more compact villas that people upgrading from an apartment can afford. For instance, these semi-detached villas in Riviera del Sol are ideal family homes and with prices starting at €378,000 they are extremely well priced. Of course, the word smaller is a relative term—they are still very spacious compared to most apartments. Quite simply, while in Marbella there is always a high demand for large and expansive houses at the top end, there is now a new market opening up—one for family villas at around the same price as a spacious apartment used to cost at the height of the boom. Developers have been quick to identify these trends, particularly on the Costa del Sol, and have been building high quality projects featuring spacious apartments and highly desirable villas for those wishing to upgrade. Meanwhile in the resale market the smaller one and two bedroomed apartments that were constructed in the 2000s have themselves become considerably more affordable, enabling young couples to finally get on the property ladder and offering retirees comfortable homes to downgrade to once the children have flown the nest. A combination of these factors can be expected to bring more variety back to the real estate market than we have seen for many years.
