Posted March 29, 2024 & filed under marbella real estate real estate news
In every property market, the distinction between newly built homes and pre-owned ones is evident. However, on the Costa del Sol, this segmentation is exceptionally clear, with a significant difference between the real estate offerings in these two categories. The coastal region has witnessed a strong focus on new construction, making freshly built homes and those under construction or sold off-plan a substantial portion of the available stock.
Are new-builds always the best option in terms of location, size, architectural design, price, and value for money? To answer this question, we sought feedback from Marbella's leading property agent, Fernando Garces, owner of Xcape Real Estate, who possess extensive experience in the local market.
Current Demand Trends Over the years, the market for new-build properties has experienced steady growth, with numerous developers launching new projects in the area.
Buyers today are seeking modern properties and are willing to wait for completion, particularly now that developers offer advanced 3D imagery, allowing clients to choose layouts that best suit their families. Despite this, the resale market remains a significant part of Marbella's real estate, with buyers still looking for move-in ready properties, especially in sought-after areas like Sierra Blanca, Cascada de Camoján, and Nueva Andalucía.
Advantages of Resale Properties Traditional resales still constitute approximately 80% of all sales, primarily because they make up the majority of properties available for purchase. However, this year has seen a notable increase in the sale of new builds, accounting for around 40% of all properties sold. The appeal of resale properties lies in their prime locations, larger size, diverse designs, and spacious gardens. The desire for more space and private green areas has grown since the COVID-19 pandemic, as many people now seek larger homes that can accommodate both living and working needs.
Comparing Villas and Apartments Initially, the move to larger properties favored resale villas. However, there has been a recent surge in demand for new-build holiday apartments and modern designer villas. These properties offer attractive designs and a desirable lifestyle. Buyers are increasingly purchasing such properties as holiday homes and as bases for remote work, appreciating the convenience of moving in without the need for extensive refurbishments.
Price and Value Comparison New-build properties often carry higher price tags compared to resale properties, reflecting the premium buyers are willing to pay for modern turnkey homes with the latest amenities and technology. However, it's important to note that new builds are generally more compact, resulting in a higher price per square meter. Resale properties, on the other hand, may require upgrades or renovations, which should be factored into the purchasing price.
Different Residential Areas In established residential areas such as the Golden Mile, Sierra Blanca, Los Monteros, Guadalmina Baja, and La Zagaleta, resale properties tend to dominate due to limited space for new construction. New residential zones, particularly in parts of Benahavís and Estepona, have become popular due to limited supply and high costs in prime areas. The New Golden Mile, La Alquería, and Atalaya are noteworthy examples, as well as the eastern areas of Marbella.
Evolving Market Dynamics In the coming years, new builds will likely continue to dominate hillside areas with more available land, while resales will thrive in established golf and beachside suburbs. Additionally, areas east of Marbella, including Elviria.
If you still not sure which way to go for, please contact us today to organise a meeting to discuss it, so we can help you to take the best decision.