After some years in the doldrums Marbella’s property market is showing encouraging signs of recovery. Led by the luxury housing segment, the market has been steadily finding momentum since 2011, with slow but consistent growth recorded last year in a process that seems to be gathering further pace in 2013.

We have more enquiries, both online and in person, as well as a higher rate of transactions – with solid single-digit growth. A year or two ago the market was still dominated by top end buyers and investors with their own sources of financing, but while this segment continues to grow it is now joined by a resurgence of the middle segment that has seen the beginnings of new construction, with the aid of services like www.konnectbuilding.com.au, and development of specialised small-scale urbanisations and private villas.

Who

Where the luxury market is the constant mainstay of Marbella, the middle segment has been the mainstay of every boom in the region. Of course no one is suggesting that we’re on the threshold of another boom – and indeed, most people would prefer steady growth over that – but the revival of this important segment is another telltale indicator of the vitality of Marbella’s property sector. Where the top end is dominated by Russian buyers, the middle-to-high segment is led by Scandinavians but has also seen a rise in French and Belgian buyers, as well as a rallying of traditional markets such as Britain and the Netherlands.

Where

Buyers looking for luxurious villas on large, private estates favour especially La Zagaleta, while the strength of resales and renovation in the villa market is reflected in the popularity of established areas such as Nueva Andalucía, Elviria, El Rosario, Guadalmina and prime beachside spots such as Los Monteros. With their lush zones and attractive urbanisations Elviria and Nueva Andalucía also score high among those looking for apartments, while bargain-hunters are focusing on newer, less-established areas on the fringes of Marbella.

Why

While this is still essentially a buyer’s market with lots of choice and bargaining opportunities, the lower prices are attracting buyers and investors back into the Marbella market. Not only have prices dropped considerably from their over-inflated 2007 highs, but there is also a sense that – especially in the mid-to upper end – they are not going to fall much more and will soon begin to rise again. The opportunities currently available, therefore, are enticing a growing number of buyers back again, especially when seen against the high cost of properties in countries such as Norway, Russia and Switzerland.

But also…

Additional factors that have benefited the property market here are infrastructural improvements, such as the expansion of Málaga international airport, the road network and coastal pathways. Together with better travel offers they have also resulted in a rise in conventional and golf tourism, both of which have served to remind large numbers of visitors of the scenic beauty and unique lifestyle that Marbella can offer.