Marbella Real Estate Market Report 2024
01 Jan 2025 | News and UpdatesWith the hopes foreseen in the 2023 market report, we come to the end of 2024 and we do so with a market that, despite the global situation, remains firm and with robust demand, allowing Marbella to establish itself as an epicentre of luxury and real estate investment in Europe.
In terms of macroeconomic variables, which we always analyse in our reports, it is worth noting that after overcoming the energy crisis in 2023, inflation has been contained at the end of this year, with the consequent fall in interest rates.
Specifically, since last September, the ECB (European Central Bank) began to cut interest rates by 0.25 points due to the easing of inflation, continuing with the cuts also in October.
In view of this new situation, the financial tension with which we started the year is easing.
Even so, and according to our experience, we can confirm that throughout 2024 and as far as the local real estate market in and around Marbella is concerned, prices and demand have continued to rise.
WHY DO PRICES CONTINUE TO RISE?
Over the years we are finding that the following reasons continue to take hold in the region, allowing a population growth that is becoming more residential and less seasonal.
– The climate, enviable year-round temperatures and general quality of life are key factors attracting buyers from all over the world.
– A first class range of services, both in health, education, gastronomy and leisure, make Marbella a premium destination for real estate investment.
– Communications with the rest of Europe and the world allow for easy commuting.
– The growing trend of working remotely allows more people to settle in places like Marbella, where they can enjoy a paradisiacal environment while continuing with their work activities. This reduces the seasonality of tourism and increases the quality and stability of tourism.
Furthermore, it is worth noting the lack of supply of newly built properties, which reinforces the maintenance of a demand that is already sustained by the aforementioned factors.
HOW CAN THIS STEADY INCREASE IN THE REAL ESTATE MARKET BE EXPLAINED IN THE FACE OF A LESS FAVOURABLE GLOBAL SITUATION?
As far as macro variables are concerned, and focusing on the year 2024, we can see, as I mentioned at the beginning of this article, that we have overcome the energy crisis that began at the end of 2022 and continued during the following year, losing power towards the end of that same year.
By 2024 we can say that this crisis has been overcome, although the same cannot be said of the rise in interest rates. While it is true that inflation began to be contained in mid-2024, interest rates have only recently begun to adjust downwards, starting to fall last September and continuing to do so in October.
Investing in Marbella continues to be a guarantee
Of course, this adjustment in interest rates clearly benefits the property market in general when it comes to borrowing for real estate investment, but the reality is that the steady rise in inflation in recent years has kept real estate investment at high levels and has caused many investors to take refuge in bricks and mortar.
In Marbella and the surrounding area in particular, many acquisitions are being made with equity, with the macro variable of rising interest rates having little effect on the property market in the area, which has nonetheless continued to increase in price. The latter gives the local market a stability and solidity in the face of possible market adjustments, which, on the other hand, are not currently visible.
Historically, British, German and Nordic buyers have led demand in Marbella. However, an emerging trend is changing the landscape: a notable increase in buyers from Eastern Europe, including countries such as Poland, Hungary, Estonia and Lithuania.
This new wave of investors finds Marbella not only a place to holiday, but also an option for permanent residence and secure investment.
European demand has seen the area as a haven for their money, so overall the pace of investment in the area has not slowed significantly.
MARBELLA REAL ESTATE MARKET REPORT 2024, CONCLUSIONS
In my experience and in my opinion, by 2025, demand in and around Marbella is likely to be sustained, albeit with some moderation compared to the post-pandemic boom. Sustained demand, combined with a shortage of new construction and steady interest rates, may continue to keep prices up, but at a more moderate pace.
A balanced market, with sustainable price growth, is healthy in the long term. Factors such as the evolution of the global economy, government policies and lifestyle trends will continue to influence the real estate market in general and Marbella and the surrounding area in particular, so it is important to monitor these factors to adjust strategies and expectations for the future.
OPPORTUNITIES FOR INVESTORS IN 2025
For those looking to invest, Marbella represents a unique opportunity. With a limited supply of new properties and growing demand, projections indicate that prices will continue to rise in the coming years. In addition, the continued improvement of infrastructure, services and air connectivity with Europe ensures its long-term appeal.
My personal experience leads me to highlight one key point: investing in Marbella is investing in quality of life and a globally recognised brand. It is a market that combines lifestyle, stability and the potential for constant revaluation.
Whether for living, working or simply enjoying its incomparable charm, Marbella offers much more than property it provides a unique living experience that continues to attract buyers from around the world.
Article by Brice Benarroch Mennessons
01 Jan 2025