In the first half of 2018, British citizens made the largest number of real estate purchases in Spain.
Foreigners are purchasing real estate in Spain in record figures, fading the dazzling numbers in the years of the real estate bubble. British homebuyers are frontrunners according to El País. Followed by the French and Germans.
The cost per m2 that foreign buyers pay is on average €1,687, somewhat down from the last half year (€1,716). But property prices have increased by 0.9% year-on-year.
The origin of foreign buyers did not vary. The British were good for 7,613 investments, an 8.8% growth compared to the first half of 2017. The UK-based buyers are chased by the French, who collected a total of 4,211 properties (- 4.6%). The Germans came third, buying collectively 4,138 properties.
In the initial 6 months of 2018, 53,359 investments were made by non-Spaniards proves notary data released earlier this month. This is the highest number in a series starting from the first half of 2007 (33 recorded sales). Ireland (24.7%) and Denmark (18.2%) are the nationalities that recorded the highest yearly growth in the EU.
The area of Andalusia is the second most popular location for foreign investors, with 9,737 sales and growth of 8.2%. Marbella, Málaga, and Estepona drew the most attention.
The status of the luxury real estate market in the Marbella area has somewhat changed. Or better said, the market has been amplified. 25 years ago, Marbella was the number one retiring community of British accountants and golfers. Nowadays, Scandinavian and American tech entrepreneurs are increasingly finding their way to the coast. Secondly, the amount of new build properties located in the surrounding areas of Marbella have increased dramatically. As a result, the offer of new build, off plan properties has changes too. Architecturally, the area is getting the ‘Ibiza makeover’. Meaning that new high end developments opt for luxury, whitewashed and minimalistic designs.
Finally, the average age of property buyers has decreased dramatically.
As a recent article in Financial Times stated correctly, the centre of today’s high-end homes is shifting from Marbella to Benahavís and Estepona, the neighbouring coastal towns that form the remaining points of Costa del Sol’s “Golden Triangle”. Developers in Benahavís and Estepona, which are close enough to enjoy the facilities and brand of Marbella but fall outside its municipal boundary and therefore escape the political hold-ups, are making full use of the opportunity.
Cilo Marbella is an exclusive boutique real estate agency located in Marbella. We offer a premium, luxury property portfolio for Marbella and the surrounding areas. Cilo was founded by two former affiliate directors with Sotheby’s International Realty, each with over 15 years experience of the luxury real estate market.