PROS AND CONS OF INVESTING IN MARBELLA PROPERTIES

Thursday August 23, 2018 |

All indicators reveal that the investment prospects for the real estate sector in Marbella are quite positive. Indeed according to data from valuation company TINSA, as of the end of 2017 prices of holiday homes had increased, especially in the most important areas of Marbella, the Golden Mile, and Nueva Andalucía. The increase was around 5%. Sales deadlines of new home developments have considerably improved and this gives a feeling of improvement and acceleration in this sector. There are still a few developments that are worth mentioning as they are built in exclusive areas, such as the new one in Lomas del Rey, among others.

High-end homes have suffered the least with the crisis and, if forecasts are right, we are entering a situation of stability that will help improve the real estate sector along the Costa del Sol, but especially in the Golden Mile and the Golf Valley (Nueva Andalucia), two of the most exclusive enclaves where Magna Estates are specialists.

Villa for sale in Los Naranjos Golf, Nueva Andalucia

Ref: 247-00928P – Villa for sale in Los Naranjos Golf, Nueva Andalucia

The main features that make of Marbella a particularly interesting area to invest in are varied, but today we would like to highlight several PROS and CONS to invest in Marbella properties:

PROS:

  • Location, location, location- it seems the most obvious one but it is actually the main one; the enclave is unique and it is the main advantage and differentiation when it comes to investing in a property. Although in recent years this trend has changed as a result of adding ‘quality’ to ‘location’; there are few new offers and they usually have excellent qualities, home automation, tropical gardens, and certain improvements so as to attract high-end clients.
  • The recovery of the market- it is already a fact and figures speak for themselves; although it is still too early to say, we are on the right path to recovery.
  • Opportunities- from old properties, which could be used to be demolished and start a new project, to refurbish them. Either of these two options is a very good strategy for investing in Marbella
  • Tourism: Spain is now a bulwark in terms of tourism. Residential tourism makes of Spain, and particularly southern Spain, a privileged destination worldwide due to its endless hours of sunshine.
Duplex Penthouse for sale in Magna Marbella, Nueva Andalucia

Ref: 247-00013P – Duplex Penthouse for sale in Magna Marbella, Nueva Andalucia

CONS:

  • Competitive market- there is an overexposure of properties in different agencies. This means that the few properties on offer are subject to price and commission increases, which make it difficult for investors to buy them.
  • Legal and tax issues- there is instability in taxation, as well as a number of regulations and a great deal of bureaucracy at a national, regional, and local level, which sometimes slows down sales processes.
  • Small market- the truth is that there are many real estate agencies and few quality properties, so relying on specialists in the areas where you want to invest is the key. In this case, at Magna Estates we are specialists in prestigious areas such as the Golden Mile in Marbella and the Golf Valley in Nueva Andalucía.