As a Real Estate Agent our job is to keep an eye on the market and let you know when is a good time to buy and when is a good time to sell.
Looking at the current market, we suggest now is a good time to invest in as many properties as possible and either keep them until a future date or rent them and then sell them at a future date. The reason being is that we predict a huge increase in prices which means a bigger return for your money, says Max Pakbaz CEO & Founder of South Spain Properties established in Marbella in year 2000.
Last year you could find modern apartments in great locations starting from €300,000 minimum. As of right now you would be lucky to find any quality apartment below €500,000 as the market has gone up almost double in some areas. It is also difficult to find a modern detached villa for less than €3,000,000 now. Only a couple of years ago you could have bought a luxury golf front villa with amazing sea views for around €1,500,000, we are all surprised but not so much.
One main reason that properties in Marbella have gone up so much is the international recognition and Marbella being recognized as the most luxurious seaside resort in Europe ahead of Monaco and similar places.
So why will prices keep going up and not crash? Well in the Golden Mile (one of the most lucrative and affluent areas of Marbella), we are seeing new developments under construction and not just any new construction but designer names like Karl Lagerfield and Dolce & Gabanna following the success of Fendi. The prices of these will range from €15,000,000 to €20,000,000, an unprecedented amount. They will sell, as nearby you also had Fendi designed apartments that sold for €4,000,000 to €6,000,000. This also means that when other developers and owners see homes selling for this much, they will also quickly start to raise their prices. So if you invest now you can also sell for a higher price when this happens. As always be sure to buy a property in a good location, good quality and views, somewhere that your Estate agent with experience can help you locate.
Perhaps you also have heard of supply and demand, the biggest factor determining the price of a property, as it is with such high demand for luxury properties in Marbella and very little inventory, the prices will keep rising. In the current market it is difficult to find any modern and fairly new properties as they are mostly sold out and your only option, possibly is off plan properties for which you need to wait a couple of years. The market is currently so hot that even off plan complexes under construction are already fully sold out before they open the grounds. This is good news for Marbella as a whole and investors who have secured deals for themselves waiting to sell them and get a great return on their money. Although we don´t have a magic ball to see the future, it is easy to see all the elements that determine the price here in Marbella, pushing the prices up. Those are: supply and demand, lack of residential lands, popularity with international buyers, micro climate of Marbella with an average of 17 degrees all year round and 320 sunny days, best health care service of Europe, safety, increasing price of construction material and lastly being a lively place all year round with no low season.
If you are looking for help or guidance to find what property to invest in then contact us using the link below. You can also ask for a call and chat with us to discuss your questions and start looking for a good investment in Marbella.
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