Property market trends in 2019 in Marbella and Costa del Sol
Looking ahead, it seems that growth in the Marbella and Costa del Sol property sector is reaching a plateau. Demand from British buyers is understandably down surrounding the uncertainty of Brexit, but other regions, notably Belgium, the Middle East, the domestic Spanish market and also new growth markets such as the Americas and Asia, compensate for this while other important ones such as Scandinavia, the Netherlands and Russia are mostly consistent.
Demand, therefore, remains solid, though in recent months it has been shifting back slightly from newly built homes to resales. This is down to the fact that the market has become a little fatigued with the modern white, right-angled architecture of recent years, as well as the fact that prices in this segment have grown more rapidly and that, while it is older and may need modernising, an existing (resale) property offers more house for your money and in a prime location.
New versus Resale
The trend for high-spec but conveniently compact villas sees itself reflected in the revival of semi-detached modern villas and luxurious townhouses that offer space, style, villa-like amenities and a family home in a price range set between apartments and villas. Penthouses, meanwhile, retain their appeal, and like villas their rooftop lifestyle terraces with lounging and dining areas, outdoor kitchen and BBQ, bar and pool or Jacuzzi, are very much in vogue.
If a Costa del Sol property is well-situated in the area between Marbella, Estepona, Benahavis, Ojén and La Cala de Mijas, enjoys good access and views, and finds itself within a gated community with modern style amenities, then it will find a keen buyer. The price has to offer value though, and with this in mind both developers and owners of existing properties should not be tempted to raise their asking prices too much.
In the year ahead the market will mostly consolidate amid strong intrinsic demand for Marbella real estate in a more challenging global economic environment. Growth is slowing in key regions of the world and the stock markets have enjoyed a long bull run, so the coming year could bring a moderate cyclical correction, but nothing like the crisis seen in 2008. Further down the line this will benefit buyers in Marbella, as property price rises will slow down and offer more value for money.
In the meantime, the waters seem calm and strong, long and short-term rental income continues to drive up a little, particularly in the most desirable addresses on the Costa del Sol. Watch out for some exciting new projects being launched in the months to come and also consider older properties to renovate.