Luxury Real Estate In Marbella | A Market Overview From Solvilla
Solvilla is a property developer and brokerage with an inhouse team of sales agents, architects and project managers.
As a developer and advisory company, we have an understanding of the intricacies of the property investment and construction process more than the average real estate agency and as such, have a comprehensive overview of the market. While this year has seen an extraordinary situation occur, the luxury real estate market in Marbella remains buoyant and sales of high value property continues.
Reports suggest that in the second quarter of this year, disposable incomes in the G7 group of large economies, which includes the USA, UK, France and Germany, were around $100bn more than they were before the Covid-19 pandemic, stated The Economist. So, with more disposable income and the desire to live with more space and out of the bigger cities, there has been an ignited interest in the luxury market sector. Real estate brokers in the USA area of the Hamptons have reported a 291% increase in sales of properties over the $5 million+, during the third quarter of this year, compared to 2019.
What are sales looking like this year?
Obviously, this has been an exceptional year and while the property market remains to a certain extent, uncertain, Solvilla can report a record-breaking summer.
Many clients who perhaps had postponed their property purchase, felt the strong inclination to buy after the lockdown was lifted, perhaps due to the unpredictability on what the rest of the year holds and they want to fulfil their dream of owning real estate in Marbella. “Turnkey” villas; those that are 100% move-in ready, have been selling more than ever and the time from reservation to completion has been less than half the normal duration. Before 2020, the standard time was two months but in recent weeks some transactions have been completed in 48 hours. People are seeking an instant pleasure – a home that is ready to enjoy as soon as the keys are in your hands.
According to Solvilla’s history, around half of sales transactions are on properties “off market” and some properties are sold before the marketing package such as the photographs have even been taken.
What are clients seeking in real estate in Marbella?
As one of our clients put simply, “as many toys as possible.” Homes in high demand are those that offer a gym, cinema room, spa and home office. All of the “perks” that turn a property into something particularly special. Garden space is also sought-after, as well as a private swimming pool.
Were sales possible during the quarantine?
Yes absolutely. Solvilla achieved multiple transactions during the lockdown here in Spain (March-June) just short of 70 million euros. Adding this with the rest of the year, the sales figures for the year 2020 will land well above the figures for 2019, when Solvilla achieved 150 million euros worth of transactions.
Sales were made possible virtually, but also with the use of very detailed videos; a walk-through of the property and showcasing the facilities. Around 25% of the properties sold during the lockdown were made possible without the buyer actually visiting or standing in the property and in some cases the buyer’s agent was out of the country also. Those specific sales relate to “turnkey” properties, but there were also transactions on plots of land.
How has the lockdown period affected people’s search for a property investment?
Firstly, there has been an increase in hunger for move-in ready properties, that the buyer can enjoy from day one. Secondly, when the lockdown forced people to work from home, many may have realised that it is perfectly possible to do so and remain connected. For a lot of people, it doesn’t matter where you work, and it is perfectly possible to live in Marbella more or less full time and have a business located in Oslo or Stockholm, for example.
In terms of our lifestyle, the lockdown period accelerated a trend of remote and flexible working, opening the possibilities of living a dream lifestyle in Spain while keeping the balance of working for your home country.
What are the most desirable places to invest in Marbella and why?
Solvilla focuses on the prime areas of Nueva Andalucia, La Quinta and the Golden Mile due to their desirable locations and solid investment opportunities. This is where most transactions occur and where the market remains more liquid, even during a pandemic.
What kind of buyers are dominating luxury real estate in Marbella?
Up to 80% of Solvilla’s clients are northern European but also the Canadian and North American are important markets. As in previous years, British buyers are investing in Marbella, and this market is expected to grow again once travel restrictions have lifted.
The typical Marbella property investor has an entrepreneurial background and is more used to making economically savvy decisions. As a result, the area has more and more “power players”, active in Europe and more educated on investment opportunities, raising the level of the real estate market in Marbella.
If you are considering investing in Marbella real estate, contact our team at +34 952 765 060