Marbella’s recovery is underway with a 22% jump in sales in Q1 2021
Marbella’s property market saw a surge in sales in the first quarter of 2021 despite travel woes.
4 minutes to read
Sales are rising. Data from Spain’s Registradores confirms 833 properties changed hands in Marbella in Q1 2021, up 22% from 684 a year earlier. The neighbouring municipality of Benahavis, home to La Zagaleta, saw a similar trend, only Estepona saw a marginal fall in transactions over the same period.
Travel is opening up. With double-jabbed EU, US and UK residents now permitted to travel to Spain without needing to quarantine on arrival or return we expect sales activity to strengthen further in the second half of 2021.
For those with the budget, and whose working patterns allow, a second home or a permanent move abroad are increasingly common responses to the pandemic, which has kickstarted a period of mass reflection pushing personal wellbeing and time with family and friends up peoples’ agendas.
According to Spain’s Ministry of Development, nationally 141,000 sales were completed in the first three months of the year, 13.1% of these were bought by foreign buyers.
Of these, 4.5% were non-resident buyers at time when strict travel restrictions remained in place and down from only 7% in Q1 2020 prior to the pandemic.
Interestingly, some 8.6% of purchases in Q1 2021 were by foreigners already resident in Spain potentially seeking to upsize or relocate.
More permanent relocations. Due to the pandemic and the lag in data availability it is difficult to gauge the true impact of Brexit to date on British buyers.
With British second homeowners now limited to spending only 90 out of every 180-day period in the European Union, some UK residents with homes in Spain are rethinking their long-term plans.
For those with work and schooling commitments in the UK the new rules aren’t too onerous, but for others looking to work remotely, or for retirees, the rule is leading them to consider a permanent move.
Of the 7,399 sales agreed in the Province of Malaga (including Marbella), some 16% were to non-residents in Q1 2021, up from 10% in Q2 2020 according to Spain’s Ministry of Development.
A new generation of younger professionals have Marbella in their sights, a trend we highlighted in our Next Neighbourhoods article in this The Wealth Report 2021.
Each year, Knight Frank’s residential property experts handpick areas that are expected to outperform the wider market. This year, the selection includes the exclusive resort of La Zagaleta. The estate’s large plots, extensive amenities and views across the Mediterranean to the Atlas Mountains are delivering many of the elements buyers are seeking in pandemic times.
Why remote working in Marbella is on the rise
- Marbella is Spain’s first 5G city. In 2020, Marbella became the first Spanish city to gain 5G network coverage meaning Marbella enjoys broadband speeds 52% above the national average according to Fair Internet Report.
- Easy connections to global business hubs. Whether London, Geneva, Paris or Dubai, Malaga Airport offers easy access to over 125 locations globally
- Property choice The quality and offer of homes in Marbella, the specification and finish is comparable to most tier one cities. US, French and German REITS are turning their attention to the region, further evidence of the market’s maturity and growth potential.
- Excellent international schools. Marbella and the wider area offers 15 international schools several offering the British curriculum or International Baccalaureate. plus German, Swedish, Norwegian and Finnish schools as well as an École Française Internationale and a Lycée Français
- Outdoor lifestyle. For those professionals who can now work from anywhere in the world, many are prioritising health and wellness, seeking proximity to golf courses, tennis academies, marinas and spas, all on tap in Marbella.
Malaga, a new tech hub
It’s not just remote workers heading to Marbella. Malaga, less than an hours’ drive away, is emerging as a key tech hub, a trend not lost on Google which has chosen Malaga’s tech park as its cybersecurity centre. The Parque Tecnológico de Andalucía is now home to over 621 businesses.
Vodafone has also selected Malaga as its centre for new technologies after a review of seven cities in five European countries.
Stamp duty reduction until the end of 2021
Mirroring the UK move, the Andalusian government has reduced stamp duty or transfer tax (Impuesto de Transmisiones Patrimoniales or ITP) for properties bought before 31 December 2021 in an effort to support the housing market and wider local economy.
To discuss your property search or current market conditions in Marbella contact Mark Harvey
Photo by Tom Wheatley on Unsplash