DM PROPERTIES

MARBELLA REAL ESTATE MARKET REPORT 2021

While Spain is well underway in its COVID-19 vaccination plan, with over 80% of the population over 12 years old fully vaccinated at the time of publication of the Marbella Real Estate Market Report 2021 written by our associate Diana Morales Properties, we are yet to come out of travel restrictions affecting our ability to travel. 2020 saw the world shut down and come to halt in many aspects. Yet, even then, the Marbella property market showed resilience and by now has outperformed all expectations, and since the start of 2021 is buoyant mainly the upper mid and high end market.

After a somewhat active summer in 2020, the end of Q4 of last year saw an unexpected increase in demand and number of sales in spite of restrictions on travelling and activities.

The COVID-19 pandemic has clearly brought about major changes in many people’s priorities and behaviour and this we have observed in buyer preferences and decision making. 2021 has been the year of demand for larger green areas, ample living spaces, privacy, multipurpose rooms, high tech installations, and the search for a better quality of life. Decision making time has been nearly cut in half, with buyers keen on relocating to our area and/or remote working.

Demand has been steady and increasing since the end of 2020. There are still a large number of properties for sale and new projects underway or due to start in the coming two years so we don’t anticipate a shortage of stock except in ultra-prime areas where there is no more land to develop or where the planning required by the authorities has not been completed.

The monetary injection (quantitative easing) being fueled by the main central banks to face the pandemic and boost the economy has generated inflation and an increase in the demand for real estate as a safe-haven asset. In fact, we have seen a significant increase in commodity prices that have reached record highs during the last months and the stock market has performed well too, family savings have also increased during the pandemic and there has been an increase in average real estate prices.

There will be a greater demand from people looking to move out of urban centres to surrounding areas or other regions, in search of a better quality of life. Marbella has all the conditions to make it an ideal destination due to its climate, geographical position, easy connections from Malaga Airport with the main European cities and good transport by land, rail -Spain has the largest high-speed rail infrastructure among all EU Member States – and sea. The rich cultural legacy offered by nearby cities such as Malaga -the city of museums-, Cordoba, Granada and Seville is also an attractive reason to consider living in the area. Malaga has also become a technology hub, with many companies setting up their offices right outside the city. In addition, this is one of the best sports destinations in Europe with top facilities for golf, tennis, paddle tennis, water sports, hiking, jogging, rollerblading, mountaineering, cycling, mountain biking, horse riding, caving, extreme sports and many others.

You can read Diana Morales Properties’ full report HERE.