Foreign investment in Marbella is substantially contributing to the economically important construction industry in Spain, with the money spent on building new homes last year reaching more than 80 times the levels seen in 2014. This is reflected in the luxury villas and apartments you can see in Marbella and the surrounding areas of Nueva Andalucia and Puerto Banus.
Global investors from different countries across the world, have been looking around for good investment opportunities, and last year they recognised that Spain- in particular Madrid, and upmarket resorts like Marbella—provide just that, with an affluent client base and pent up demand from previous years being released into property investment as the Spanish economy improves.
Despite construction activity still being well below the peak of 2007, the levels observed today are seen by property professionals as being at a much more sustainable level and less vulnerable to a ‘boom and crash’ cycle, as more caution is being displayed in both the quality and location of new residential developments.
High Demand For Luxury Villas And Apartments In Marbella
When the property market in Spain crashed to rock bottom in 2008 a huge quantity of apartments remained unsold—either because they were of poor quality or in isolated locations—and in some cases, both. This was never a real problem in Marbella, where developers have recognised that the premium buyer the town attracts demands a well-built home in a prime location. Indeed, earlier this year a report in the real estate industry revealed that Marbella had run out of housing stock—particularly at the high end of the market—and more new developments were desperately needed. Now developers have learned the lesson offered by Marbella, and promoters across Spain are focusing on selling luxury apartments and villas in areas like The Golden Mile.
Locally, foreign investment companies have not been slow to react, with several projects worth hundreds of millions of euros being announced for Marbella and the surrounding areas by Asian, Middle Eastern, European and American companies all contributing to the amount of foreign investment in Marbella. Across Spain as a whole, in 2015 construction and property accounted for a third of the €22 billion inward investment from foreign sources according to the Ministry for the Economy.
Locations such as La Zagaleta have demonstrated that the luxury villas for sale are being snapped up, often by buyers from such countries as Saudi Arabia, Sweden, Norway, Germany, Belgium and Britain, while the Russians are returning to Marbella’s real estate market as the Ruble begins to strengthen.