Costa del Sol rejuvenates as younger crowd moves in
Lucas Fox Marbella enjoys record sales in the first 5 months of 2018.
Lucas Fox Marbella sales quadruple year-on-year
Average price of sale exceeds €970,000
Lucas Fox Marbella has had a record start to the year, with the number of sales transactions more than quadrupling from 01 June 2017 to 31 May 2018. There has also been a significant shift in demographics with the average age of buyer now at 42, notably younger than in recent years. Nationality too is changing – Scandinavians dominated sales (46%) in the last 12 months followed by UK buyers (23%).
“There was once a time when the Costa del Sol was renowned for its older foreign population, lured by year-round sunshine and its easy pace of life,” explains Lucas Fox’s Managing Director Rod Jamieson. “However a generation of tech savvy, entrepreneurial buyers are moving in, now choosing to relocate to Marbella with their families. They are not only attracted by the area’s unbeatable climate and lifestyle, but also by its good infrastructure, international feel, efficient services including many international schools, and the kudos that owning property in this sought-after enclave entails.”
Average price of Marbella property rises
The price of a property sold by Lucas Fox Marbella during this period averaged at €971,000, almost double that of the average price of the previous year. Most buyers are still looking for a second residence, although Lucas Fox is registering increasing numbers of younger buyers choosing to either relocate or spend part of the year based in the area, thanks to the ability to work remotely. The majority of Lucas Fox buyers in the Marbella area tend to be either CEOs or entrepreneurs, adding to the growing start-up scene.
One such buyer is 43-year-old Swedish entrepreneur Amir Poursamad who bought a second home off-plan in Lucas Fox’s Anamaya Villas development, one of a new breed of bespoke eco-friendly projects emerging along the coastline. He’s now looking for new business opportunities along the Costa del Sol.
“Marbella is unique. In fact for me, it has it all – year-round sunshine, excellent infrastructure, high class dining, unbeatable beaches, designer shopping and sports facilities arguably unrivalled elsewhere,” he explains. “The business start-up scene is growing as the area’s demographics are changing – increasing numbers of eager young professionals like myself are looking for opportunities in a bid to make Marbella our permanent base.”
The effects of Brexit have taken a unexpected twist with some buyers choosing to look at a permanent move to the Costa del Sol from the UK. Àlvaro X is a venture capital entrepreneur, originally from the North of Spain and currently lives in London.
“Given flexible working arrangements more people are able to work more remotely today than ever before” Àlvaro explains. “The economic climate in the UK following Brexit prompted us to look for alternatives for our young family. Some of our main criteria included a diverse crowd, outstanding international schooling, excellent communications and a better quality of life. Marbella ticks more boxes for us than any other location in Europe and being a Spanish national our decision became even easier”
Official data shows steady increases in both the number of sales transactions and sales prices in the region. Sales in Málaga Province rose by just under 5% in the first quarter of 2018 compared to the same period in 2017 according to the National Institute of Statistics whilst Spanish property portal Idealista reports that prices rose by 12% in Málaga Province.
The proportion of foreign buyers is also growing – in the first quarter of 2017 they represented 28% of the market, whilst that figure has increased to 31% in the first quarter of this year.