Nos propriétés
Nos propriétés

Is now the right time to invest in Marbella?

Is now the right time
to invest in Marbella?
Some would say it is always the right time to invest in Marbella property, but of course that is not quite true. While real estate represents one of the most solid long-term asset classes out there, it is important to pick the right moment if you want a short-term return. The question is: is this such a time?

When assessing a purchase or indeed an investment in a particular product, place and time, it is of fundamental importance to first consider a number of key factors.

Price, and the relationship of S and D

One of the first criteria to analyse is price, and more specifically, which direction it is moving in and where in the ‘curve’ it finds itself – all criteria related in essence to relative supply and demand. If we consider this in the Marbella property context, we see that prices, particularly in the luxury segment and top locations, have been rising steadily for some years, and that this trend is accelerating. 

Maybe this is part of an overall inflationary period the world is now entering, but on the ground it is also very much caused by a lack of supply. In other words, in the luxury market in particular, demand for modern and renovated real estate in Marbella is outstripping supply – causing many buyers to purchase off-plan, with delivery times of 6-18 months.

So, prices are pushed up by strong demand, a factor that even so does not seem to put buyers off. In other words, we could slowly be moving towards a ‘sellers market’, but while business is good for investors and developers too, rising material supply times and construction costs – a now almost global issue – are putting some strain on profit margins and delivery schedules. 

However, for now the market seems quite happy to absorb any price increases resulting from this, and remains attractive to buyer and developer alike, with people in countries surrounding the conflict in Ukraine also finding in Marbella a safer place for their money. 

Where in the curve?

To assess if this situation may continue, and if prices continue to rise with it, we have to zoom out a little and consider what is currently happening with regard to time and price. The market has been in solid recovery mode for some years now, dipping deeply in 2020 and rising sharply in 2021. Of course these movements, not being due to normal macroeconomic conditions, makes it more difficult to read, but while the upward movement has been sustained for some time, there are still no signs of a bubble.
With intrinsic demand for what Marbella offers and its strong position vis-à-vis international competitor destinations, a high level of transactions and solid price increases look set to continue for some time to come. The European and international economies, though tested by international events, are still in post-covid recovery mode, and therefore will reach higher than usual GDP growth rates until well into 2023. 

So yes, while this is not a time when you’re buying for ‘cents on the buck’, business sentiment is strong and Marbella remains a good place in which to invest. Now is clearly a good time to invest in Marbella for homebuyer and developer alike.