Marbella’s Luxury Real Estate Market Sees Record Highs
The luxury real estate market in Marbella is increasingly being viewed as a secure investment. Engel & Völkers, a real estate firm specializing in luxury properties, reports that sales of high-end real estate have tripled in 2021, reaching an all-time high.
Investment in Luxury Products Amid Health Crisis
The ongoing health crisis has led to a surge in investment in luxury goods, including the premium real estate market. This trend is particularly noticeable in Marbella, where buyers are seeking a higher quality of life in a more natural and enjoyable environment. The quality of urban development and favorable climate have drawn international buyers to Marbella for both primary and secondary residences, leading to extended or even permanent stays in the coastal town.
Record Sales of Luxury Homes
Engel & Völkers reports that sales of luxury homes have amounted to 561.6 million euros, with 353.8 million euros coming from resale properties. Many properties were sold for over 4 million euros, with the most expensive unit, a villa, selling for 15 million euros. The average sale price, including villas, flats, and townhouses, was 1.8 million euros.
Supply and Demand Imbalance
Engel & Völkers notes that demand is currently outstripping supply in Marbella’s urban development, a unique phenomenon in the city’s history. The growing interest in prime housing presents a challenge for the coming year, as new homes will be needed to meet the increasing demand from international buyers. Market indicators suggest that this high level of activity could continue to rise this year.
Younger, European Buyers Show Interest
There has been a noticeable increase in interest from younger buyers, drawn by the lifestyle in southern Spain. The target audience is shifting, with younger clients, primarily from the IT sector and known as “digital nomads”, as well as young international athletes choosing to settle in the area. Engel & Völkers has seen a nearly 150% increase in clients from Germany, Switzerland, Austria, Belgium, and the Netherlands.
Record-Breaking Results for Engel & Völkers
The demand for luxury homes has significantly boosted Engel & Völkers’ performance. In 2021, the company surpassed 3,000 million euros in brokerage volume for the first time in its history. It handled 8,356 sale, purchase, and rental transactions valued at 3,153 million euros, marking an 88% growth compared to 2020 and a 65.5% increase compared to 2019, the year before the pandemic.
