Marbella Investment Opportunities
Investment Opportunities in and around the Marbella area
The Marbella real estate market is on its way up in a big way, drive around any area on the Costa Del Sol and you will see beautiful views, palm trees, blue skies and cranes, lots of cranes. The real estate that has seen the sharpest increase in value is land.
With the real estate market in Spain, especially coastal areas like the Costa Del Sol taking the recession very hard, the property market has been stagnant for an especially long time nearly 10 years. With no new properties being built for the best part of a decade, a lot of properties are just not up to the standard people expect, tastes have changed and the contemporary Scandinavian style of property are in extremely high demand. With such high demand the property development has gone into overdrive.
A brief overview of the common types of real estate investments are below:
- Purchase older properties or bank repossessions at a discounted price refurbishing and selling for a profit or renting them out for a long term investment option – this method was a good idea in 2012, 13 and 14 but now the good deals have all but gone and as the license required for a full refurbishment takes the same time to get as a new build generally investors are starting from scratch now. Refurbishment costs are usually around €300 per square meter.
- Purchase a small plot and build 1-5 villas or townhouses. After a project has been designed and the building license is granted investors often opt for selling some off plan and incrementally increasing the price as the project approaches completion. Prices are generally around €1500 per square meter (not including land cost) for this type of project although depending on size and materials can be more or less.
- Another option is to purchase a project that is ready to go with plot and license approved, a good option for a “hands off” approach. Generally investors make 20% profit within 1 year. prices can start at around €2000 per square meter for these projects
- Purchase larger plots and building apartment complexes. From 20 units up to 200 units, generally this option is for larger investment companies or a group of smaller investors. Cost per square metre for the build can vary form €500 up to €1000 depending on the quality required to maximise profit for a given area.