Is buying a home in Marbella a good investment?

Callum Swan, June 2022 | Local News and Information

Some people will always advise you to buy, but a true property consultant’s role extends beyond that. Callum Swan is a boutique real estate firm where we believe in establishing long-term relationships with our clients, and this entails providing the best possible advice.

It is simply our ethos, but this way of working, which involves an investment of time, know-how and resources on our part, produces strong client-broker relationships as part of which we are entrusted to source luxury property for sale in Marbella, but also in many cases manage the homes on behalf of buyers and even oversee renovation projects. And when the time comes, we’re entrusted with the tasteful and effective marketing and sale of their properties.

Such a relationship of trust is built upon know-how and ethics, and both are involved when we are asked to provide advice and answer questions such as the one in the title. Timing is a major factor when deciding whether or not to buy a property here or elsewhere, and the right moment has to be measured against a variety of market factors.

Supply, Demand and Price

Market conditions are the first things to assess, and they centre upon the interaction between three main factors: the amount of demand relative to available supply, and how this is affecting price movements.

On the Costa del Sol, right now, demand has been strong since early on in 2021. In fact, last year produced a record level of property transactions, especially when measured in value terms. Such was the strength of demand for real estate that stylish modern villas and apartments – the property types most in demand – are now an even more desirable commodity for which there is a keen and growing market.

The trend has resulted in rising prices, and it is most pronounced in Marbella itself, where the difference between demand and supply is the greatest. However, while this is slowly becoming a sellers’ market, the fury of a ‘bubble’ is as yet not in sight and there is no immediate danger of one developing. In other words, the current property market on the Costa del Sol and Marbella in particular is investor-friendly, and while prices are rising steadily they are still very reasonable compared to many other parts of Europe.

We would therefore feel confident to advise our clients that buying a home in Marbella is a good investment now and for the near future, but would qualify this by adding that such an investment has the greatest impact in either Marbella’s top addresses or in newly up-and-coming areas that combine value for money with good capital appreciation over the medium term.

Talk to us about your plans and we’ll be happy to share our market know-how and information with you.