The much awaited economic forum XIX edition will take place in Malaga, from 5th to 7th September, and will bring together 130 executives from the largest American and Spanish firms. The co-chairmen Juan Maria Nin (Caixa bank CEO) and Senator Tim Kaine will also be present. In a press conference announcing the event, they stated that “the Costa del Sol has always been an attractive region with 300 days of sunshine a year and Malaga has become a significant economic and cultural centre as well as a communications hub on the Mediterranean coast”. This event will reinforce Malaga’s, and the region’s, economic credibility exposure and stimulate activities in many sectors especially real estate as it is the first widespread investment reflex. Thus google searches for “Puerto Banus appartments” or “Villas in Marbella” should reach higher numbers.
As Spain regains purchasing power, this year’s figures show that Malaga province’s tourism has largely benefited from this positive trend. Indeed, half a million national tourists have come to stay in hotels of the province since January. Figures show that this represents a 5% increase of national tourists compared to last year but more interestingly, there is a greater increase in overnight hotel stays (11%). Thus, there are more national tourists, especially coming from the capital (+14%), that also stay longer than the previous year. The Costa del Sol Tourism Board underlined that this trend was helping the local economy recover faster.
In sum, with this clear increased national interest and an international exposure taken into account, it is safe to say that Andalucia real estate such as Marbella villas and Nueva Andalucia townhouses will be in the bull’s eye.
Since 2003 Malaga has been sprinting to reach a global touristic reputation with high infrastructure investments. Indeed, the city intensified its cultural activities for a “Guggenheim effect”, added a third terminal to its international Airport, connected with Madrid with the high-speed train and finally became a top cruise ship destination in the peninsula with an increase of 247% in number of visitors since 2000 (400,000 people). All these efforts over the past decade have led to Malaga hosting more international events such as the Samsung world forum or the basketball Copa del Rey. The city plans to continue pushing its growth until imposing itself amongst the top 10 destinations in Europe by 2020. Thanks to this ever-growing worldwide reach, cities from the region, such as Marbella and its marina Puerto Banus, are and will continue to benefit from the attraction of potential investors on their property markets.
Andalucía’s economy has been growing steadily since the beginning of 2013, investors have become more and more confident as both real estate and tourism markets have gained in strength and interest. To make sure that this trend continues exponentially, the Junta de Andalucía’s department of tourism is injecting 1.5 million euros in its market to support small and medium sized tourism businesses that wish to undertake improvement projects. This comes at a perfect time where the past crisis has eliminated the weakest local businesses but where the strong survivors are facing imposing new-coming global companies. Thus, the Junta has said to be already solicited for “upgrading hotel computer systems, the provision of new technology for travel agents, the creation of new routes linked to gastronomy, the renovation of sport facilities” and many more. This investment directly influences the real estate market, as more and more tourists, potential investors, will crave Marbella villas or apartments in Puerto Banus, for example.
The year of 2013 was a difficult one for the Iberian peninsula mainly because of a transition in tax policies. Indeed, the end of tax reliefs for first home ownerships and IVA rate increases on new housing created a rush in deal closures before 2012 came to an end. Therefore, the first half of 2013 was a slow start and – with the comparison of the official figures – there turned out to be a drop in property transactions. In terms of total figures, Spain as a whole registered a 17.4% drop, its western coast managed to escape to that drop by the skin of its teeth with an increase of 0.85%. It is Marbella that helped in this escape with a comfortable positive progress of 23.6%.
Overall there are two solid oxes pulling the Spanish plow: the Alicante province in first with a total of 422 million euros in transactions and in second the Malaga province (393 millions euros) largely helped by the strong Marbella property market.
While other cities and regions are still facing questions on how to put their local economy back on its feet, Marbella has the luxury to ask itself: where should the new helipad be installed? Indeed, although this project may seem extravagant its only because the tourists and seasonal populations that come to Marbella expect high standards. Thus the wealthy that land in Malaga airport will be able to fly over traffic, through beautiful Andalusian coastal landscapes to finally disembark on the beach of El Pinillo, right next door to their holiday estate. Furthermore, the town council will also put this project to the service rescue operations, fire protection or healthcare, giving Marbella the guns to ensure safety. All this shows how far the municipality is willing to go to keep Marbella’s property market up to date with investor needs.
The Costa del Sol tourist board has organized press trips over the four last months of 2013 for journalists from around the world. The promotion of the region’s assets reached over 21 million people from countries such as Mexico, the UK, Sweden, Hong Kong, Singapore and many more. As a result, today we can already feel the spinoffs of this exposure, especially for the beachside villas in San Pedro de Alcántara, puerto banus, cortijo blanco and the rest of the coast up to Marbella. Recently, these properties are amongst the most desirable and demanded homes. If you’re interested in taking a peak at what’s on the market Aqua Estates’ expertise is your best tool to dive for your hidden pearl.
Marbella and Malaga could be drawn closer together through the much-awaited railway project that was announced last May. First, the government engineering consultancy Ineco must study the technical and financial viability as well as the funding options (European aid). A past study has estimated the annual number of passengers to 100 million. We can consider that this project will not only intensify the flow of populations but also increase the flow of riches to this already tourist-magnet region. Thus, as much as today’s Marbella property market is speeding back on track it’s nothing compared to its forging potential.
Rightmove Overseas, UK’s largest property portal, has named Spain as the new bull’s eye for British home hunters. Their recent report states that the key motivators of the 3,000 surveyed english for moving overseas are: a smooth weather and a relaxing lifestyle. Thus, we can’t be surprised to hear that the Iberian properties are popular searches, such as: « Puerto Banus Property » or « villas in Nueva Andalucia ». We can roughly predict that the 51% of Brits looking to purchase a holiday home abroad are likely to end up somewhere around the Marbella property market.
The Golden Blue consultant group study reveals that non-EU tourists are high-profit “clients”, they spend 4 times more than EU tourists. The best clients are the Chinese followed by the Russians, Indonesians, North Americans, Japanese, Thais and Saudi Arabians. The region of the Costa del Sol is highly benefiting from this accelerating tourist activity particularly in the Puerto Banus area that cashed-in €77 million on the €100 million total of Marbella. It’s safe to say that the Marbella property market can keep its hopes high for a solid prosperity.