Property survives all inflation and crises, which underpins its intrinsic value. After all, property is the only capital investment whose return is steadily and continuously rising – also due to growing rental income. No other investment can say the same. The steady increase in value is also due to the fact that property prices and rents are rising more and more in the wake of inflation. On average, the annual increase in real estate value over the past 20 years was around 4-5%. Thus, the sum of the invested capital doubled only by purchase and ownership. Not all real estate investments lead to the desired success. However, there are certain criteria that determine the economic value and added value:
-Object and location
-Supply and demand
-Quality of life and living environment
-Economic development of the location
-Price / rent development
Marbella offers the best conditions, as the city with 150,000 inhabitants attracts an average of 3,000,000 tourists a year, thus creating an extensive demand for accommodation. The administration of Marbella itself has a major influence on the current demand on the real estate market regulating the restrictions on development and the current Marbella development plan (PGOU) through its strict planning policy (PGOU).
It is thus planned to guarantee more open natural areas and green areas by means of consistently low building density. Here, also the interests of citizens and residents are represented who do not want to live permanently next to a construction jungle. This administrative regulation also ensures the economic value and increase in value of the properties. On average, real estate prices rose by 4.2% last year. New constructions increased by 5.8%, second-hand properties by 4%.
Investments in Marbella are therefore not only protected by the rising tourism (stable and rising rental income), but also by sustainable regulations for stabilization. In addition, the future-proof growth of price policy in the real estate sector as well as the improvement of the quality of life and the living environment play a major role.
Extremely pleasing is also the upturn in the Spanish economy. In contrast to the last ten years, its growth is stronger as ever. Europe’s fourth-largest economy is developing on a broad front, uninterrupted and above-average in the last three years, with an annual increase of 3.2% of GDP – twice as high as Italy and one and a half times more than Germany.
The opportunity to invest in a property in Marbella is right, as there are more and more people who live here all year round in the warm sun enjoying a pleasant lifestyle. And as an international hotspot and immigration region, Costa del Sol will continue to push up prices for a very long time – whether for absolute luxury properties or affordable real estate.