Luxury property sales are booming. / Josele

Sales of homes worth over four million euros are soaring in Marbella

A report by a leading estate agency in the Costa del Sol town shows that the increase began before the pandemic and is likely to continue

JOAQUINA DUEÑAS Marbella

For some years now leading estate agency, which opened in Marbella in 1970, has been producing a report on property sales in the area to show how the market is evolving, and the latest one reveals that there has been “an explosion” of sales of villas costing more than 4,000,000 euros.

This actually began before the pandemic: "We calculate that in 2018 at least 65 properties were sold at that price or higher, and the figure rose to more than 120 between mid-2020 and mid-2021,” the report says, and also estimates that in the past year the number could be nearer 150.

Panorama says it is now normal for properties worth four million euros to be sold, and even those costing more than ten million.

The price of these villas is based on two key factors, says Christopher Clover, the managing director and owner. One is inflation, which affects construction costs and is calculated to be 23.5% this year, and the other is that demand clearly exceeds supply, which inevitably leads to a rise in prices. This increase is expected to continue in the future.

“Marbella is considered a safe haven for property purchases in times of uncertainty, not only for its unique qualities but also because of its location,” the report says. “The key word now is quality, and never before in Marbella have we seen such a wide range of homes being built to world-class design, technology and quality finishes".

With regard to sales during the first half of 2022, Puente Romano on the Golden Mile has become the epicentre of luxury with prices ranging from 10,000 euros to 31,000 per square metre. It means that the coveted one-kilometre stretch between Marbella and Puerto Banús has maintained its position as one of the most exclusive areas.

Rental prices have also gone up

Prices have also soared in the luxury rental sector. The report explains that five years ago there were modern, luxury two-bedroom apartments for rent in the most prestigious areas of Marbella for about 2,000 euros a month, whereas now they would cost 3,500 euros.

“These days, renting a nice four-bedroom villa in the best areas can cost around 10,000 euros a month, while only a year ago a similar property would have been about 6,000 euros a month to rent,” it says.