Marbella luxury market braces for real estate boom, according to Panorama Properties

The luxury real estate market in Marbella, one of the areas with the highest demand in the entire country, is experiencing a sweet moment. Despite the fact that the restrictions due to the health pandemic still remain, local agents affirm that the sector is more active than ever and they foresee that the trend will continue to rise.

One of them is the real estate agency Panorama Properties, led by Christopher Clover, who states in a study that "in 2021, the luxury segment of the real estate market (that is, properties valued at more than one million euros) has accelerating month by month, until reaching a level of activity never seen before. The luxury real estate market, instead of being negatively affected as most would have anticipated, has prospered, far exceeding all expectations.”

And he adds that “this increase in demand, which has been growing at an almost frenetic pace, has been the direct consequence of the coronavirus pandemic. With the real estate market being so active despite mobility restrictions between European countries, and even between Spanish municipalities, we could say that this wave of sales is just beginning, and it is an extraordinary and positive indicator of the market that we will see in the coming months. as travel restrictions continue to relax.”

The real estate agency, which has been present in the Marbella market since 1970, relies on the growing demand for real estate assets to justify its theory. “The trend towards greater investment in the upper and luxury segment of the real estate market is not a phenomenon exclusive to our area: individuals with high purchasing power are showing a clear tendency to direct their investments to the real estate market throughout the world”, he points out. the study.

In the company's opinion, real estate is being perceived on a global scale as a “safe harbor in these uncertain days and, without a doubt, much safer than stocks on the stock market or other investment alternatives. Furthermore, it is a fundamental investment in the quality of life that many can afford today.” And Marbella is currently one of the most attractive luxury tourist destinations in the world thanks to its climate, sports and golf facilities (there are 52 golf courses in the province of Malaga alone), and its infrastructure.

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On the other hand, the study highlights that low interest rates have also been a shock to the real estate market, as well as the boost that teleworking has registered during the pandemic. In this sense, remember that many executives from New York have been traveling en masse to South Florida, attracted by its warm climate and the spaciousness of the homes, with terraces and gardens. "There have been so many Goldman Sachs employees and partners who have moved to Florida that the company's management is considering opening an office in Miami or Fort Lauderdale to support their team," they detail from Panorama Properties.

As has happened in the US, the agency explains that Marbella, a traditional tourist city, is registering an increase in the number of owners who want to spend more time in the area, one of the most important enclaves on the Costa del Sol, and have decided to convert his second residence into his habitual residence.

The document also summarizes other factors that are driving sales in the city of Malaga, such as the tax reduction that the Andalusian Government has applied in the last two years. It is worth mentioning the reduction of the Property Transfer Tax (ITP) by up to 3%, setting a single general rate of 7%, and the Tax on Documented Legal Acts (IAJD) from 1.5% to 1.2%, as a measure provisional until the end of 2021. Added to this is the fact that the Inheritance and Donation Tax was practically eliminated in April 2019, "thus making Andalusia one of the most fiscally favorable regional governments in Spain," insists the real estate agency. In addition, there are significant tax cuts pending approval by the regional government and "certainly, these tax cuts will help boost sales of real estate in the region," he points out.

Another reason that leads the real estate agency to think that the positive evolution of the luxury residential market in Marbella could continue over time is the high supply of high-end homes and the new projects that are being developed. “Never before has Marbella known such a wide range and selection of high-quality properties available on the market. There are innumerable high-quality homes in the process of being built and others pending obtaining the corresponding license to be able to start the works”, they conclude from Panorama Properties.