http://www.lucasfox.com/Property/Spain/andalucia/marbella.html

1. MARBELLA
REAL ESTATE MARKET
Q1 & Q2 2013
Stephen Lahiri
Director Lucas Fox Marbella
www.lucasfox.comMARBELLA REAL ESTATE MARKET Q1 & Q2 2013
MARBELLA REAL ESTATE MARKET:
OVERVIEW
• In early 2013, Lucas Fox established
an office in Marbella in order to provide
quality service and the best luxury
properties to our international clients
• Average property prices have held
steady in Marbella and Estepona. Super
luxury properties in prime locations still
demand and achieve unique prices
solid demand for exclusive penthouses
and apartments in frontline locations,
particularly in Marbella and near the
more urbanized locations closest to the
nightlife, boutiques, and the beach clubs,
such as Nikki Beach and Ocean Beach.
MARBELLA PROPERTY SALES
TRANSACTIONS
Sales transactions and visitor numbers
increased in 2011 and 2012 and this has
continued during the first half of 2013.
Marbella properties saw a larger than
usual end-of-year trading in 2012 and
a faster upswing in the first few months
of this year. Across Spain, statistics for
property transfers and sales transactions
tend to spike in December and January
as properties change hands at the end
of the tax year, with some transactions
still showing up in January data. This is
again observable at the start of 2013,
but interestingly, the muted winter and
spring months with low transactions has
not been repeated. Instead property
transactions are quickly returning to the
level of trading usually observed in the
summer months.
Generally sales have been strongest for
luxury properties and in prime locations.
• Lucas Fox Marbella has seen increasing
interest from Arab, Chinese and Indian
investors for luxury properties in prime
locations
• The new Residency Law which will
enable non-EU investors to obtain
residency when they invest €500.000 or
more in property is already attracting a
great deal of interest from international
buyers
MARBELLA REAL ESTATE MARKET:
SUMMARY
Marbella is one of the most popular and
competitive property markets in Spain. It
is driven by a great year-round climate, a
buoyant rental market and an international
and sophisticated lifestyle. Often referred
to as the “California” of Europe, it boasts
an excellent restaurant and social scene,
a vibrant beach culture as well as access
to more than 100 golf courses and the ski
resorts of the Sierra Nevada
In the exclusive residential areas of
Marbella, Benahavis and Estepona, there
has continued to be demand for luxury
villas, particularly contemporary and
modern, which include swimming pools,
outstanding views and high levels of
privacy and security. We are also seeing
We believe that all
the signs suggest that
the market is starting
to bottom out and
predict that there will
be an increase in the
number of property
sales transactions on
last year, particularly
at the top end of the
market.

2. www.lucasfox.comMARBELLA REAL ESTATE MARKET Q1 & Q2 2013
Average Sales Prices for Costa Brava properties (selected areas): Q3 2010 – Q2 2013
Source: idealista.com
€ per Square Meter
Since the start of the economic
downturn and increasingly in the
past couple of years, buyers have
demonstrated greater caution when
committing to property purchases in
Spain. The same applies in Malaga,
where buyers view a greater number
of properties than in previous times
before reaching a decision. They also
tend to be more patient at biding their
time for the best located properties
to emerge, particularly in the areas
of Los Monteros, Golden Mile, Sierra
Blanca, Puerto Banus, Nueva Andalucia,
Benahavis, La Zagaleta, El Madronal, La
Heridia, Estepona, Sotogrande and Los
Flamingos. Even in these areas, value
has become a more important factor
with buyers keen to ensure that they
can absorb any future depreciation in
property values.
MARBELLA AVERAGE SALES PRICES
Average property prices tend to obscure
a true picture of trading amongst luxury
properties in Marbella and districts.
High-end properties with substantial
lifestyle assets are more resistant to price
fluctuations in the broader market, but at
the same time, there are some excellent
discounted property opportunities
beginning to emerge. Generally prices
are much more negotiable further back
from the coastline.
According to Spanish web property
portal, Idealista, prices in Marbella and
Estepona held steady in the first six
months of 2013 ending the half year on
€2,122 and €1,456 per square metre,
respectively. Super luxury properties in
prime locations still demand and achieve
unique prices.
“Buyers are getting more excited as they
sense we are now nearing the bottom of
the market,” comments Stephen Lahiri,
Director of Lucas Fox’s new Marbella
office.”Exclusive properties in the most
desirable locations are attracting more
international buyers looking to take
advantage of the current economic
climate. In particular, buyers from
Northern Europe, Scandinavia and
Russia are tending to invest as a lifestyle
decision. Given the levels of interest, we
know that investors from the Middle East,
China and India are ready to purchase
for the investment potential when the
new residency law is enacted. Most
of these buyers are taking a long-term
outlook. They are looking for high quality
properties in good locations that can
provide long-term capital appreciation
and a rental income in order to cover the
running costs whilst the property market
remains stagnant.”
MARBELLA RENTAL MARKET
Average rental prices for Marbella ended
the first half of 2013-07-26 on €7.38
per square metre, while average rentals
around Estepona remained steady at
€5.72 per square metre, according to
web portal Fotocasa.
SHORT-TERM RENTAL DEMAND
Airport arrivals into Malaga-Costa del Sol
airport are a good indicator of demand
for short-term rental accommodation in
Marbella. This indicator helps investors
determine the potential yield that can
be generated from purchasing Marbella
apartments primarily for use as tourist
accommodation.
To the end of June 2013, the Malaga-
Costa del Sol airport has welcomed 5.72
million passengers, a growth of 0.5%
above 2012 arrivals and defying the
national trend which saw a national drop
of 5.9% in airplane travel.
To end of June 2013, the wider
Andalucia region – which includes
Marbella and surrounds – hosted 3.4
million international tourists, accounting
for 13.1% of all international visitors to
Spain this year. Scandinavian, British
and Dutch tourists are the predominant
visitors.
FOREIGN INVESTMENT INTEREST
As the Lucas Fox office in Marbella
opened in May 2013, we do not yet
have data on international visitors
looking at Marbella property on our
website. However, Google trends
since the start of 2012 show steady
and continued interest in Marbella
property from global searches. While
there is some drop in searches in the
Average Sales Prices for properties in Marbella and surrounding luxury districts
(Benhavis and Estepona): Q1 2011 – Q2 2013 / Source: idealista,com and fotocasa.es

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Alexander Vaughan
Founding Partner
Stephen Lahiri
Director Lucas Fox Marbella
For more information contact us:
E info@lucasfox.com / T (+34) 933 562 989
www.lucasfox.com
final quarter of the year as the summer
months fade, the start of each year sees
a quick upsurge in interest as travellers
and investors begin planning visits for
the year ahead.
While the majority of international
searches for Marbella property have
been amongst UK residents, we know
from our work with interested buyers
that there is also strong interest in high-
end Marbella properties from; Northern
European, Russian, French and
Malaga-Costa del Sol Airport Arrivals (‘000s): 2011 – 2013 / Source: Aena.es
Global trends in searches for Marbella property, 2011 – June 2013
Source: Google Trends
Scandinavian buyers, and more recently
Arab, Chinese and Indian investors.
Lucas Fox Analysis and
Predictions for 2013
“As in most of Spain in general, property
prices in Marbella have reduced
significantly over the last 4 years. This
year has seen more buyers interested in
properties at their sales price, indicating
that vendors are being realistic and
that buyers are more confident that the
market has bottomed out,” comments
Mr Lahiri, Director of Sales at Lucas Fox
Marbella.
“We believe that all the signs suggest
that the market is starting to bottom
out and predict that there will be an
increase in the number of property sales
transactions on last year, particularly at
the top end of the market.”
“We expect the majority of interest
to come from lifestyle buyers from
Scandinavia, Russia and Northern
Europe and investors from non-European
countries currently waiting for the new
residency laws for non-EU citizens to take
effect. The key markets for these types
of clients may come from Russia, China,
India and Southeast Asia,” Mr Lahiri adds.
“We are currently registering as many
as 20 interested clients a day through
our Residency in Spain joint venture with
Spanish law firm ECIJA” comments Lucas
Fox co-founder Alexander Vaughan
“We expect there to be a huge spike in
demand from non European buyers when
the law is passed in October”
“As a result, in order to meet the needs
of expected buyers from these new
markets in China, India and around the
world, Lucas Fox is working together
with investors and local developers to
produce new off-plan properties that
will particularly appeal to buyers from
these international locations. Our new
Lucas Fox Property Lounges that have
been a success in Barcelona will be
rolled out to Marbella before the end
of 2013,” adds Mr Vaughan. “We are
also working on new media-related
projects that will ensure that we stay
ahead of our competitors, and continue
to offer a complete property service
for both international buyers and local
property owners”