Known for its beautiful beaches, diverse cultures, tasty cuisines, and near-perfect weather, Marbella has earned its rightful place as one of Spanish most popular travel destinations.
Along with all of that, Marbella also offers a robust and varied real estate market.
The location is always crucial to the success of a real estate investment decision.
The Costa del Sol real estate market is flourishing, and investors are making a lot of money off of it. Here are some advice on how to make your investment worthwhile if you are considering purchasing a home in the Costa del Sol.
Why?
Well, unlike most places, the Marbella real estate market has a proven reputation for being consistent.
For the past 10 years, Marbella real estate appreciation rate has been – consistently – above average.
According to Idealista, prices were already rising by 2015. And by 2018, they went up by 12.5%, taking them ahead of 2011 values. Covid had little effect on prices, which rose by 2.8% in 2020. Last year saw a slightly higher uptick (3.8%) and they now stand at 17.5% higher than a decade ago.
If you are looking at Marbella for your real estate investments, keep on reading to know everything you need to know about this sunny city!
If you would like help investing in Marbella real estate, contact us at Marbella Investment properties for a no-obligation real estate investor consultation.
1. There is a strong international market.
Statistics show that foreigners constitute more than 25% of Marbella population.
This demonstrates how welcoming the city is to immigrants. And this is only one of the factors that keep foreign investors drawn to Marbella.
The real estate market in Marbella has attracted the attention of foreign investors for a variety of reasons.
For instance, some people think about investing in real estate in the Costa del Sol a secure and promising market, while others—mostly expats—want a new beginning or to live in a place with the best weather in Europe.
Others decide to purchase an apartment in a urbanization that serve as their primary residences or holiday homes.
2. Know your target market.
Before anything else, you have to know everything there is to know about the market you are investing in.
Unfortunately, some investors often assume that they’ll succeed just because they invested in a strong real estate market.
What they don’t know is that it takes a lot of experience, knowledge, and analysis in order to succeed in real estate.
Choosing your exact location should be next. Look for a location that’s still growing and closer to your target renters.
3. Hold out for the right deal
You can’t just go and invest in the first deal you find. You must hold out for the right deal so that your profit margins are worth the risk. The first thing you must do is set a budget for your investment. This is the amount of investment that you are willing to spend. Once you have the budget in mind, look for properties that are priced below that number. This is how you can find the right deal. However, keep in mind that there must be a reason why the seller is priced their property so low. If it is priced below the market average, there must be some hidden flaws. This means that you will have to spend some extra money on repairs and renovations. This might end up costing you more than the deal’s initial price. So, make sure that you are completely aware of what you are getting yourself into.
4. Prepare enough investment capital.
Marbella investment properties are expensive and don’t have a zero-down mortgage plan. You need to have at least a 30% down payment to get better mortgage terms.
Moreover, you need to set aside a small allocation of funds for repairs, especially if you buy a bargain-priced second hand home. Generally, you may have to do a few repairs and revamps in order to make the home attractive to tenants.
5. Limited Supply of New Homes
We have to consider an undeniable factor in Marbella, and that is the presence of the massive retiree population. Most of these retirees simply move here for the great weather conditions, but older people that already live here, stay in their homes and never sell.
This fact actually produces lesser turnovers in the Marbella market, thus limiting the supply for other buyers. The retirees who do leave Marbella seasonally tend to keep their homes as vacation homes, so there’s less competition for limited housing stock.
6. THE CITY HAS A BIG POPULATION OF RETIRED PEOPLE.
Because of its excellent weather and vitality, Marbella’s population grows every day. It is important to notice that the city has a great number of retired people and most of them come to the Costa del Sol to live their retirement.
What does it mean?
Fluctuations of housing value rarely affect most of retirees, and because they have no reason for selling their houses, there are less houses for the property buyer market.
Obviously, it is known that without an offer, demand increases, so as prices of properties, and renting properties demand.
The Golden Mile: Luxury shopping at its finest
The Golden Mile,” as it’s often referred to, is the vibrant area of Marbella. The vast majority of the city’s luxury establishments are located in this area, which goes from the Pirulin of Marbella up to Puerto Banus.
Residents in this portion of Marbella have the quickest access to big-name fashion brands, luxury boutiques, and world-class dining establishments. What’s more, while strolling the busy streets of this see-and-be-seen neighborhood, you’ll inevitably bump into a few of its famous patrons.
For more info about the prestigious area of the golden Mile of Marbella read our article about the Golden Mile of Marbella
7. Find the Right Real Estate Agent for Your Marbella Real Estate Experience
Whether you are buying a home or searching for Marbella real estate investments, hiring a professional real estate agent can make a difference. A real estate agent can not only help you in finding the right home at the right price but the real estate agent can help you make the buying process run smoothly and easily. Here we have a short guide on how to find the best Real Estate Agent in Marbella and in the Costa del Sol
Conclusion
Real estate investing in the Costa del Sol is an extremely lucrative investment, but only if you make the right choice. Before you jump into real estate, make sure that you are aware of the risks and the do’s and don’ts when investing. For more info about the best properties available on the market feel free to contact us.
