Marbella is multi-source demand market

The downturn in the Spanish property market does not seem to be putting off foreign buyers to snap up homes in Marbella, according to experts.

According to the Inmobiliaria Salvago consultancy company, Marbella's property market saw an average price increase of 2.15% over the past year. However, the overall drop in property prices along the Costa del Sol amounted to between 0.78% and 3.8% and the average price of a property now stands at €2,556 (£2,020). Marbella possesses the most expensive properties, with the average property for sale currently costing €3,145 (£2,490).

The reason for this trend is as property experts stated the Marbella area market is comprised not only of national buyers but also, and of international buyers. It is a multi-source market, attracts both "in-and-out" speculator buyers and "off-plan" purchasers fed from all European countries and from others even further afield. Another reason stated is that there is now much less zoned building land available for new construction due to the restrictions in the new General Plan, which has boosted the resale market.

The reason for the continued strength in the higher priced properties is that Marbella is most sought-after place and easily accessible with direct flights from most major cities in Europe. Marbella's vastly improved infrastructure, year round season with activity of all types in the winter months, and the best climate in Europe, makes it appealing to investors even though it is not as cheap as earlier.