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The Market mantains the pace on Marbella & Benahavis

As we have gone through the first quarter of 2024 and observed activity on the market, the data on closed transactions for the fourth quarter of 2023, and thus for the entire year, has been released. From this information, we can draw a couple of conclusions that align with recent trends:

1. 2023 proved to be a solid year for the real estate market, although it didn't surpass the historic performance of 2022. Despite experiencing a notable -18.0% decrease in Marbella and a more modest -5.1% decline in Benahavis in the number of annual closed transactions compared to 2022, it's important to note that 2023 still brought positive outcomes for both municipalities. These percentage declines may seem substantial, but they are in comparison to 2022, a year that set historic records for closed transactions in the whole area.

2. The proportion of new unit sales has remained relatively stable. Despite fluctuations, as illustrated in the chart, the average number of new unit sales as a percentage of total sales has hovered around 7.3% for Marbella and 13.3% for Benahavis over the past decade.

These figures are significantly lower than the peaks of 45% and 65% seen during the pre-2008 crisis boom. In fact, the oversupply of new constructions played a role in that crisis, with about five times more construction activity compared to now, yet only approximately 50% of newly built units were being sold. The current numbers indicate the maturity of the market, more controlled development activity, increased developer experience, and a scarcity of available land compared to the abundance seen in 2001.

In summary, the real estate market in the Costa del Sol area continues to demonstrate resilience and positive performance, buoyed by promising macroeconomic conditions and ongoing investments. However, we have to acknowledge the geopolitical uncertainties that have arisen in the first quarter of 2024, presenting a potential risk to stability.

Unveiling Real Estate Trends: Pricing shifts & Market Dynamics on Marbella & Benahavis

The Ministry of Housing / Fomento and the real estate portal Idealista have published the most recent data regarding prices from the fourth quarter of 2023, revealing subtle shifts in trends that offer interesting insights:


1. Continued Rise in Asking Prices. Despite a 23,7% decline in annual closed transactions compared to 2022, asking prices have persisted in their upward trajectory even into the fourth quarter. Notably, the quarterly increase in prices in Benahavis and Marbella averaged a modest 1,9%, which, while still relatively high from a personal standpoint, marks a decrease from the 2,9% average witnessed in the past two years. This adjustment signals not a decline, but rather a moderation in the pace of price increases, a welcomed shift in my view. It appears that some property owners may still perceive the market through the lens of the booming year of 2022. However, even amidst this positive market sentiment, overpriced properties continue to face challenges in finding buyers.


Notably, I have observed instances where homes, after languishing on the market for two to four years, were sold within three months of being priced at a more reasonable level. As we step into the new year of 2024, asking prices persist in their upward trajectory.

2. Stabilization in Closing Prices. Although not immediately evident from the trend lines on the chart, there's a noticeable flattening in the latest data points (in blue), suggesting a potential shift towards a more stable trend in upcoming quarters if the current pace continues.

 

Consequently, while asking prices maintain their ascent, signaling optimism among property owners, closing prices are displaying a growing moderation, a typical response to a significant decrease in transactions (-23% compared to the previous year).

 

 

The increasing disparity between asking and closing prices, now reaching 30%, implies that property owners with listings on the market will likely need to offer more substantial reductions to facilitate sales.

 

3. Prices of newly built units continue to rise, albeit at a slower pace, while the prices of second-hand homes are starting to decline. In Marbella, prices of newly sold units saw a modest increase of 0,1% over the last two quarters, whereas closed prices of second-hand homes decreased by 3,5%. This marks the first semester since the pandemic where prices have shown a downward trend. Similarly, in Benahavis, the situation mirrors Marbella's, with a 4,2% increase in newly sold units over the last six months, contrasted with a 0,6% reduction in second-hand home prices. It remains to be seen in the upcoming quarters whether this trend will persist or if it was merely a reflection of the fourth quarter of 2023, when economic indicators were less favorable, with rising index rates and inflation not fully under control.

4. Valuations are following a similar pattern to closed prices. Although valuation prices reported are only available for Marbella (indicated in red on the chart) and not for Benahavis, in the fourth quarter, the red dots on the Marbella chart indicate a deviation from the previous trend line, suggesting potential concerns among valuators regarding market conditions. Time will reveal whether this deviation represents an isolated deviation or a broader trend. Nevertheless, it underscores the uncertainties faced by valuators during the fourth quarter .

In summary, asking prices in Marbella and Benahavis continue to rise, leading to a widening gap with real closing prices, also growing but on a more moderated way, reported by the Land Registry. This trend suggests an excess of optimism among property owners attempting to sell their properties. While price increases are typical in a healthy market, double-digit percentage increases, as seen in recent years, may not be sustainable in the long run.

 

Embracing Optimism: Key factors for a positive 2024 Real Estate Market in Marbella & Benahavis

As we initiate this the new year, we have been receiving many inquiries about our outlook for 2024. We have been analyzing the market and are pleased to share our positive perspective based on several key factors:

1. Resilient performance in 2023 showing a positive outlook despite transaction decline. Despite a 23.7% decrease in annual closed transactions compared to 2022, 2023 has proven to be a solid year for the real estate market in Marbella. This decline, though significant, should be viewed in context, as it positions 2023 above the average for the past two decades.

 

2. Prices in Marbella and Benahavis show signs of moderation.  In our recent newsletter, we highlighted that second-hand home closing prices are exhibiting a more restrained increase, as indicated by official third-quarter data from 2023. Current information from the real estate portal Idealista from January 2024 asking prices reveals a downward trend in smaller municipalities, while prime locations maintain stability (see info attached for Benahavis).

 This moderation in prices is a positive development, potentially enticing more buyers back into the market.

 

3. Euribor decline unlocks affordability and signals market positivity. The Euribor mortgage index rate is on a downward trajectory, standing at 3.686% in January 2024 compared to the peak of 4.16% in October 2023. This not only enhances afforda-bility for buyers but also signals a favorable shift in the index, anticipating additional reductions, as predicted by different bank analysts, throughout 2024 and 2025, providing a two-year window with increased acquisition capacity.

 

4. Anticipated Interest Rate reductions can be a boost for real estate in 2024. Analysts anticipate a reduction in the European Central Bank's official interest rate in June, marking another positive signal for the market. The more moderate inflation rate of 2.8% in January 2024, compared to the double-digit figures at the end of 2022, supports this forecast. Lower interest rates will alleviate mortgage costs and positively impact the real estate market.

 

 

5. Affordability metrics are weathering challenges in the Spanish real estate landscape. Despite a 2.25% increase in the affordability rate in Spain over the past two years, it remains at 33%, still 1% below the average of the last two decades. While rising prices and interest rates have had some impact, it is not anticipated to significantly affect the market, particularly the high-end segment on the Costa del Sol.

 

6. Steady inventory maintains equilibrium in Marbella & Benahavis. The inventory remains balanced and relatively low. Although price increases may push off some buyers, the limited supply of properties will likely prevent significant price declines, contributing to a stable market.

 

In summary, our optimism for the Marbella & Benahavis real estate market in 2024 is grounded in these positive indicators. Despite geopolitical uncertainties, including conflicts in Ukraine and Gaza and U.S. elections, we believe that the market, supported by the factors mentioned above, will exhibit resilience. Notably, our January activities have shown moderate engagement, defying the typical quietness associated with this time of year.

 

Understanding Price Trends in Marbella & Benahavis with insights from 2023´s third quarter.

In December 2023, the official data for the third quarter of 2023, sourced from the Associations of Land Registries and Notaries, was released, revealing a continued upward trajectory in property prices. In Charts 1 and 2, we have worked out this information with the variation in asking prices from the real estate portal Idealista to draw some compelling conclusions:

1.- Sustained Price Growth: Notably, property prices persist in their upward journey, maintaining a consistent pace with double-digit growth, approaching a 13% annual variation. This growth, as shown in the charts, can be observed in the three different prices being recorded: asking, closing and valuations pricing.
Property prices have been on a consistent upward trajectory since 2014, experiencing a more pronounced acceleration from 2022 onwards in Marbella and a sustained, continuous ascent in Benahavis.

2.- Continued Trend: Although official year-end data for 2023 is yet to be released (scheduled for March 2024), the asking prices published by the Idealista portal indicate an ongoing growth rate, remaining consistent with previous months. Despite an unmanifested slowdown in the data, the market experienced a palpable deceleration in the last quarter of 2023.

 3.- Persistent Gap in Asking and Closed Prices:
The disparity between asking and closed prices remains significant. In Marbella, this gap reached historical highs in 2022, approaching 20%, and persists, indicating that the current average overpricing of properties in the market remains at that level. In Benahavis, a similar pattern is observed, with the gap closely mirroring Marbella's, reaching a peak near 24% in 2022 and currently standing at a more moderate but still notable 17%.

 

 4.- Preference for New Builds: The contrast between the closing prices of new units and second-hand homes underscores a distinct preference for newly constructed properties. Both new build and second-hand unit prices have experienced an upward trajectory in Marbella and Benahavis, as illustrated in Charts 3 and 4 (back page). However, the trends diverge between the two locations. In Marbella, a significant surge in new build prices has been observed since mid-2022, while closing prices for second-hand homes present a more stabilized situation with a tendency toward stability. At the start of 2022, the difference stood at a mere 500 €/m2, approximately 15%. Currently, this gap has expanded to 2,500 €/m2, marking a notable 40% increase. Conversely, in Benahavis, purchasers of new builds are paying a remarkable 50% more per square meter than those acquiring second-hand properties. This imbalance can be attributed to the general preference among customers for new products, despite the premium associated with being new. Additionally, the limited availability of new developments in Benahavis further contributes to this market asymmetry.

 

 

Considering the sustained increases in prices, a pertinent question arises: Can this trend be sustained? Personally, I believe the market cannot support continuous double-digit growth over time. Examining the American real estate market, which typically precedes ours by about a year, it experienced a profound crisis in 2023, with some locations witnessing 17% price drops and an average of 11%, along with a 40% decline in closed sales of second-hand homes. This collapse was primarily attributed to affordability rates, with high mortgage rates and escalating prices pushing many buyers out of the market, resulting in reduced closings and a subsequent drop in prices.

Could we witness a similar situation in the markets of Marbella and Benahavis? In this instance, I am inclined to believe otherwise. Luxury markets, such as the one we have here, are less susceptible to increases in mortgage interest rates, and the inventory remains low. Examining the luxury real estate market in the US reveals a more normalized market with a similar number of homes sold and a 3% increase in prices. Therefore, our focus should be on maintaining a more normalized market in terms of homes sold and price increases, as failure to do so may continue to deter potential buyers.

In summary, while acknowledging the current normalized market, I am of the opinion that the ongoing increase in prices may not be sustainable for much longer, as it runs the risk of destabilizing the market.

What are the expenses related to the ownership of a property in Spain?

When delving into the financial considerations tied to property ownership in Spain, it becomes imperative to distinguish between maintenance costs and expenses not directly related to property upkeep. In this article, we will specifically focus on the latter.

1. Council Ownership Tax (Impuesto sobre Bienes Inmuebles I.B.I.)

The I.B.I., an abbreviation for Impuesto de Bienes Inmuebles, stands as an annual tax applicable to all Spanish properties. This local tax, irrespective of residential status, is paid to the Council and contributes to maintaining the infrastructures and services provided by the Town Hall. Calculated as a percentage (Benahavis, for instance, applies a 0.4%) of the catastral value or tax value, the I.B.I. is a crucial aspect of property ownership.

2. Rubbish Collection Tax (Basura)

The Rubbish Collection Tax, another local tax, is paid to the Council by property owners, regardless of residential status. This tax funds the rubbish collection services provided by the Town Hall. Each Council sets its own tax rates, ranging from a fixed lump sum per year to a percentage of the catastral value.

 

3. Annual Wealth Tax (Impuesto de Patrimonio)

Applicable to both residents and non-residents owning property in Spain, the Annual Wealth Tax is a nuanced aspect that requires expert advice for clarity.

4. Personal Income Tax

Exclusive to non-residents in Spain, this yearly tax has distinct modalities based on whether the property is rented out or not. For rented properties, the tax is 25% of the declared income, while for non-rented properties, it is 25% of 2% of the catastral value.

5. Community Fees

In condominiums, whether comprising buildings, townhouse complexes, or communities of independent villas, shared maintenance costs for common elements (pool, garden, roads, lights, security, etc.) are distributed among property owners. A yearly budget is prepared, and fees are calculated as a percentage associated with the property.

 6. Insurance

Though not compulsory in Spain, having household insurance is strongly recommended. The potential risks far outweigh the cost of ensuring your property's protection.

 

Navigating market dynamics: Insights into 2023 Marbella & Benahavis Luxury Real Estate

In the midst of a broader slowdown in the real estate markets of Marbella and Benahavis throughout 2023, marked by a notable 26% decline in the overall number of homes sold, one question looms large, how is this downturn affecting the exclusive realm of luxury properties, defined here as those valued at one million euros and above?

Within Charts 1 and 2, the volume of closed units across various price brackets and the proportion of sales within the upscale market is showcased versus the overall number of properties sold in both Marbella and Benahavis. These charts unveil compelling insights:

 

1.- Parallel Slowdown in Luxury Segment: The luxury market mirrors the broader trend, experiencing a significant 26% dip in Marbella and a more pronounced 30% decrease in Benahavis. Despite this, there's a glimmer of resilience. Notably, the highest levels in Marbella, encompassing properties valued at four million euros and above, have witnessed an impressive 18% uptick in sales, suggesting a degree of insulation from prevailing market challenges.

 

2.- Robust Growth in Luxury Market: Even amid the general market slowdown, the luxury segment has demonstrated remarkable growth. Charting the first six months of 2023 reveals sales figures surpassing those recorded for entire years from 2017 to 2020. This upward trajectory over the past three years signals the enduring strength and viability of the luxury real estate market in the region.

 

3.- Ascending Percentage of Luxury Sales in Marbella: Marbella continues its ascent in the luxury market, with the percentage of sales steadily climbing. This year, the figure increased by an additional 1%, reaching an impressive 13.2% of the overall market. Within six years, the percentage has doubled, surging from 6.6% in 2017, attesting to the robust growth this segment continues to exhibit.

 

 4.- Dynamic Trends in Benahavis: While Benahavis exhibits a more fluctuating pattern in percentage shifts, there is an overarching upward trajectory, with a notable 60% increase over the past six years. The doubling of the percentage within the highest price bracket mirrors the trend observed in Marbella.

 

5.- Distinctive Appeal of Benahavis: Noteworthy is the substantial disparity in the percentage of luxury sales in Benahavis compared to Marbella, particularly beyond the four million euros threshold. Benahavis consistently outpaces Marbella in this segment, solidifying its standing as a coveted destination for wealthy individuals. This trend has contributed to Benahavis earning the distinction of being the richest municipality per capita in Andalucia.

 

 

  In summary, the luxury real estate market in Marbella and Benahavis, while not immune to the broader market challenges, it exhibits a resilience and momentum cultivated over recent years. The allure of these exclusive properties persists, promising a continued trajectory of success in the face of evolving market dynamics.

Choosing the right heating system for your home

When it comes to keeping your home warm and cozy, selecting the right heating system is crucial. With various options available, understanding the different types of heating systems can help you make an informed decision. Here are some popular heating options for your home:

 

Forced Air Heating: This common heating system uses a furnace to heat air, which is then distributed throughout the house via ducts and vents. It's efficient and can also incorporate air conditioning.

Radiant Heating: This system warms the objects and surfaces in a room, providing consistent heat. It can be achieved through radiant floor heating, wall panels, or overhead panels.

Heat Pumps: These systems transfer heat from one place to another, either heating or cooling your home. They are energy-efficient and can be a cost-effective option in moderate climates.

 

Electric Heating: Electric baseboard heaters and electric furnaces are examples of this type of heating. While easy to install, they might be more expensive to operate compared to other options.

Geothermal Heating: Using the earth's consistent underground temperature, geothermal heat pumps provide efficient heating and cooling. Although installation costs are high, they can significantly reduce energy bills in the long run.

Wood-Burning Stoves: Ideal for creating a rustic ambiance, these stoves burn wood to generate heat. They can be cost-effective but require a steady supply of firewood.

 

Consider the size of your space, your budget, and the climate in your area when selecting a heating system. Consult with a professional to determine the best option for your home, ensuring a warm and comfortable living environment throughout the colder months.

 

Marbella and Benahavis Real Estate Trends 2023: Unpacking Q2 Home Sales Insights

In the latest report from the Ministry of Housing, the numbers are in for home sales in the second quarter of 2023, and they reveal a notable 26% decrease in closed transactions for both Marbella and Benahavis. Naturally, this may raise some questions about the state of the real estate market in these areas. Let's break down the key insights:

 

1.- Interpreting the Numbers: A 26% decline in closed sales might appear substantial, but its significance becomes clearer when we consider the context. We're comparing these figures to the exceptional year of 2022 when historical records for home sales were set. In that extraordinary year, we witnessed an impressive surge, with Marbella's sales soaring by +53% and Benahavis by an astonishing +91% above the average annual transaction count in these regions. While these percentage drops are significant, it's important to note that the first half of 2023 still ranks as the second or third best first half in the real estate history of Marbella and Benahavis. This suggests that while 2023 might not match the remarkable performance of 2022, the real estate market in these municipalities maintains a healthy level of activity.

 

2.- Looking Ahead: A crucial question arises: Will this trend continue? It's true that we are currently experiencing a cooling in the demand for properties, possibly due to global uncertainties and rising interest rates. However, it's important to remember that Marbella, Benahavis, and the entire Costa del Sol remain highly sought-after destinations in Europe, thanks to their exceptional lifestyle offerings. So, despite a temporary dip in property demand, we anticipate a resurgence in demand once the global situation stabilizes and improves.

 

3.- Distinguishing Trends: An interesting nuance can be observed in the sales of new versus second-hand properties. In Marbella, the primary drop in closings is affecting the sale of new builds, accounting for 8% of sales, and seeing a notable 73% decrease. In contrast, Benahavis is experiencing a 40% increase in the sales of new units, while sales of second-hand properties have decreased more significantly, by 32,7%.

 

In summary, although there is a 26% decline in home sales, the real estate market in Marbella and Benahavis remains active. The first half of 2023 is still among the top-performing first halves in the history of these municipalities. The second half of the year, which we expect may show more cooling, will ultimately determine how 2023 concludes. Despite current challenges, the outlook for future years remains positive.

 

 

 

Autumn wellness tips for healthy living

As the leaves begin to paint the landscape with shades amazing colors, autumn arrives with its unique charm and opportunities for wellness. This season of transition can be a wonderful time to focus on self-care and well-being. Here are some autumn wellness tips to help you make the most of this beautiful time of year:

1. Embrace Outdoor Activities: Take advantage of the crisp, cool air and go for a nature walk or hike. The changing scenery and fresh air can do wonders for your mood and overall well-being.

2. Nourish with Seasonal Foods: Autumn offers a bounty of delicious, seasonal produce like pumpkins, apples, and squash. Incorporate these into your meals for added nutrients and flavor.

3. Maintain Exercise Routine: Continue your regular exercise regimen or explore new indoor workouts to stay active. Consistent physical activity can help combat the temptation to hibernate.

4. Boost Your Immunity: Focus on bolstering your immune system with a balanced diet rich in vitamins and minerals. Consider adding supplements like vitamin D if needed.

5. Practice Mindfulness: With holidays approaching, it's essential to manage stress. Try mindfulness meditation or yoga to stay grounded and reduce anxiety.

6. Cozy Up and Rest: Longer nights provide the perfect excuse to get cozy. Invest in soft blankets, indulge in hot baths, and prioritize a good night's sleep.

7. Connect with Loved Ones: Autumn often brings gatherings and celebrations. Use this time to strengthen your connections with family and friends, which can be a significant source of emotional well-being.

8. Set Goals and Reflect: As the year approaches its end, take the opportunity to set goals and intentions for the coming months. Reflect on your achievements and growth over the year.

9. Gratitude Practice: Cultivate an attitude of gratitude by keeping a journal and jotting down things you're thankful for each day. This practice can improve your overall outlook on life.

10. Wardrobe Transition: Transition your wardrobe mindfully. Donate clothes you no longer need and invest in quality pieces that will keep you warm and stylish during the season.

 “Autumn is a time of transformation, and by embracing these wellness tips, you can make this season a time of personal growth, rejuvenation, and gratitude. Remember to listen to your body, take care of your mental health, and enjoy the beauty that surrounds you as nature prepares for its winter slumber.”

Unpacking Q2 home sales insights

In the latest report from the Ministry of Housing, the numbers are in for home sales in the second quarter of 2023, and they reveal a notable 26% decrease in closed transactions for both Marbella and Benahavis. Naturally, this may raise some questions about the state of the real estate market in these areas. Let's break down the key insights:

 

1.- Interpreting the Numbers: A 26% decline in closed sales might appear substantial, but its significance becomes clearer when we consider the context. We're comparing these figures to the exceptional year of 2022 when historical records for home sales were set. In that extraordinary year, we witnessed an impressive surge, with Marbella's sales soaring by +53% and Benahavis by an astonishing +91% above the average annual transaction count in these regions. While these percentage drops are significant, it's important to note that the first half of 2023 still ranks as the second or third best first half in the real estate history of Marbella and Benahavis. This suggests that while 2023 might not match the remarkable performance of 2022, the real estate market in these municipalities maintains a healthy level of activity.

 

    2.- Looking Ahead: A crucial question arises: Will this trend continue? It's true that we are currently experiencing a cooling in the demand for properties, possibly due to global uncertainties and rising interest rates. However, it's important to remember that Marbella, Benahavis, and the entire Costa del Sol remain highly sought-after destinations in Europe, thanks to their exceptional lifestyle offerings. So, despite a temporary dip in property demand, we anticipate a resurgence in demand once the global situation stabilizes and improves.

 

3.- Distinguishing Trends: An interesting nuance can be observed in the sales of new versus second-hand properties. In Marbella, the primary drop in closings is affecting the sale of new builds, accounting for 8% of sales, and seeing a notable 73% decrease. In contrast, Benahavis is experiencing a 40% increase in the sales of new units, while sales of second-hand properties have decreased more significantly, by 32,7%.

 

In summary, although there is a 26% decline in home sales, the real estate market in Marbella and Benahavis remains active. The first half of 2023 is still among the top-performing first halves in the history of these regions. The second half of the year, which we expect may show more cooling, will ultimately determine how 2023 concludes. Despite current challenges, the outlook for future years remains positive.

 

Is it worth investing in Marbella´s Real Estate?

I would say, it depends on various factors including the type of asset, the specific property, and the timing of the investment. The primary aim of this article is not to delve into an exhaustive analysis of each real estate asset category as the returns may change for the different options flipping, land development, distressed properties, etc. For instance, land investments often demand more time, whereas distressed properties might yield higher profits, particularly from a short-term perspective where timing is crucial. Investors who ventured into Marbella's real estate market in 2001 or 2013 arguably reaped substantial returns, while those who entered in 2007 faced losses instead of gains. The core idea is to approach real estate investments from a long-term standpoint that is less susceptible to market volatility.

Initially, two primary sources of profit are linked to real estate: income derived from rentals, whether for holidays or long-term leasing, and the appreciation of real estate values, i.e., price increases. Profitability arises from the combination of these two elements.

When examining Chart 1, which illustrates Spain's home profitability (in red) alongside Gross Rental Profitability (in blue) and real estate market price fluctuations (in green), one can discern that the past two decades featured periods of loss, such as 2012, as well as periods of substantial returns, notably from 2001 to 2005, averaging around 17% per annum.

The first component, Gross Rental Profitability, exhibits less volatility than home prices and has remained relatively stable over the past decade, hovering at approximately 4%. Between 2001 and 2013, it experienced more fluctuations but still maintained an average of 3.8%. Taking a 20-year perspective, the overall average stands at 3.9%. However, these percentages pertain to Gross Rental Profitability. But what about Net Rental Income? To obtain the Net figure, operating and maintenance costs must be subtracted, which is estimated at an average of 1.9% of the gross profit. Consequently, the yearly average Net Rental Income is roughly 2%.

The second component, the increase in Marbella's home prices, is summarized in Chart 2. Here, it's observable that the average annual increase over the past two decades stands at 3.5%. There were years marked by substantial price hikes, such as the period from 2001 to 2007, as well as years with price declines, occurring between 2009 and 2013. The current The question then arises: can this be regarded as a sound investment?

Once again, the answer depends on the yardstick used for comparison. Let's explore various investment options to determine where real estate in Marbella stands, as depicted in Chart 4, illustrating the average 20-year trends.

Chart 4 presents a comprehensive view of seven distinct investment assets, showcasing their average annual 20-year returns on investment. Notably, the stock market, particularly the US stock market, emerges as the top performer in long-term returns, followed closely by gold. Bonds, cash, and commodities, on the other hand, offer returns of below 3% on a yearly long-term basis. It's worth noting that there are alternative investments, like cryptocurrencies, that may yield higher returns, but they come with substantial volatility and associated risks. As the adage goes, higher risks can lead to higher returns, but this isn't the kind of investment we aimed to compare with.

To summarize, long-term investing in real estate in Marbella is poised to deliver an average yearly return of 5.5%, a rate that proves quite appealing for a moderate-profile, long-term investor. It's also attractive for individuals who view their property acquisition primarily as a means to relish the high quality of life Marbella has to offer but are mindful that, over the long haul, it can also serve as a sound investment.

 

CHART 3 - THE LUXURY HOME PRICES IN MARBELLA

CHART 4 - THE LUXURY HOME PRICES IN BENAHAVIS

Your new home awaits.