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Key reasons why working with a real estate agency on an exclusive basis is the best choice

Here are some key reasons why working with a real estate agency on an exclusive basis is the best choice:

Dedicated Marketing Strategy

Your property receives a customized, high-quality market-ing plan, including professional photography, virtual tours, and targeted advertising.

Higher Selling Price

Exclusive listings often achieve better prices because the agency focuses on maximizing your property's value ra-ther than rushing for a quick sale.

Stronger Negotiation Power

With one agency handling all inquiries and negotiations, you avoid multiple agents undercutting each other, which can lead to lower offers.

Better Buyer Qualification

The agency carefully screens potential buyers, ensuring that only serious and nancially qualied individuals view your property.

Personalized Service & Commitment

An exclusive agent is fully dedicated to selling your home, offering personalized attention, regular updates, and strategic advice.

Faster & More Efficient Sale

A clear, streamlined process avoids confusion and duplication, leading to a quicker and smoother transaction.

Condentiality & Security

Working with a single trusted agency minimizes unneces-sary exposure, reducing security risks and protecting your privacy.

Choosing an exclusive real estate agency means working with professionals who are fully committed to achieving the best outcome for you!

2024 Real Estate review: Marbella’s strength vs. Benahavís’s slowdown

The real estate market in Marbella and Benahavis continues to show resilience and unique dynamics, as reected in the latest transaction data for 2024 published recently by the Ministry of Housing. Based on the data presented in the charts, three key trends based on the market performance highlight the strengths and challenges of these two sought-after locations:

1. Q2: The Strongest Quarter for Sales. Both Marbella and Benahavis experienced their highest transaction vol-umes during Q2 in 2024. This period consistently outperformed other quarters across the years, reecting a seasonal peak in buyer activity. In Marbella, Q2 alone account-ed for a signicant portion of the nearly 5,000 units sold in 2024, while Benahavis saw similar patterns with Q2 leading its sales gures. This trend underscores the importance of timing for sellers aiming to capitalize on heightened market demand.

2. Marbella: Sustained Sales Growth Despite Market Fluctuations. Marbella´s real estate market maintained its robust trajectory, achieving nearly 5,000 units sold in 2024—well above its historical annual average of approximately 3,500 units. The market has demonstrated con-sistent growth since recovering from the global finantial crisis of 2008-2012, with strong performance across all quarters. Marbella remains a prime destination for both domestic and international buyers, driven by its reputation as a luxury hotspot and its ability to attract steady demand year after year. Looking ahead, 2025 is expected to sustain steady sales, aligning with long-term trends rather than short-term spikes.

3. Downward Trend in Benahavis. In contrast to Marbel-la’s resilience, Benahavis experienced a slight decline in sales over the past two years. After reaching record highs in 2022 with nearly 1,000 units sold, transaction volumes dipped in both 2023 and 2024, falling closer to its historical annual average of around 600 units. While Q2 remained the strongest quarter for Benahavis in 2024, the overall downward trend suggests a cooling off period after several years of rapid growth. This could indicate a shift in buyer preferences or maybe just buyers being more cautious about paying ambitious listing prices.

In summary, the real estate markets of Marbella and Benahavis showcased distinct trends in 2024. While Marbella continued its upward trajectory with strong sales concen-trated in Q2, Benahavis faced a slight decline after peaking in 2022. Both markets exhibit clear seasonal patterns, with Q2 emerging as the most active period for transactions. For buyers and investors, Marbella remains a stable and growing market, while Benahavis presents opportunities for those seeking value amidst its recent slowdown. Understanding these trends is key to making informed deci-sions in these prestigious real estate destinations.

  

The Spanish's goverment announcement os a tax for non-EU buyers: Analysis

On 13 January, Prime Minister Pedro Sanchez announced during an economic forum in Madrid a proposal to increase the tax on the purchase of properties by non-European Union buyers who do not reside in Spain.

The information provided by the government during the appear­ance is so scarce and confusing that it has sparked panic in many sectors and abroad, as Prime Minister literally said ''We are going to limit the purchase of homes by non-resident non-EU foreigners by increasing the tax burden they will have to pay in case of purchase up to 100% of the property's value, something unprecedented in Spain but applied in other countries like Den­mark or Canada." Even the target buyer is not clear and we have to assume that it refers to nationality, so non-EU nationals who reside or will reside in Spain u pon the purchase will fall out of the scope of the measure.

Without knowing exactly the proposed measures or their scope or what the Prime Minister intended to say, we have learnt that the government is exploring two options: a)Modifying the exist­ing Transfer Tax and b) Creating a new special tax specifically targeting these purchases.

Transfer tax is shifted to regional governments, mostly governed by the Conservative Party, so the real effect of this measure is doubtful.

About creating a new tax, in theory it is not possible if there is already an existing tax for the same concept or taxable event. However, we have the precedent of the Solidarity Tax, a comple­mentary tax on State level to Wealth tax (at regional level) who has been admitted by the Constitutional Court.

Finally, the Spanish Constitution establishes that the tax system should not have a confiscatory scope, meaning it should not exhaust the taxpayer's wealth. Although a 100% tax has been proposed for the purchase of homes by non-EU foreigners, this is an exceptional and specific measure.

Confiscatory taxation refers to a tax that eliminates the taxpay­er's source of wealth. Generally, a 100% tax on the taxable base would be considered confiscatory and, therefore, unconstitution­al in most cases.

Of the 12 measures announced by the Prime Minister, at least four must go through the Congress of Deputies, and the tighten­ing of regulations for the purchase of homes by non-EU foreign­ers is one of them.

Therefore, we have to bear in mind that this is just a proposal announced during a forum, that we have to wait for the formal proposal to be released, and that the government cannot develop this measure for non-EU buyers without the approval of the Con­gress.

In the event that this measure if f1nally approved and the law is enacted, its constitutionality will be likely questioned. As com­mented, if the measures depend on regional governments, it will be counteracted. And, once published, we will have to study what alternatives are applicable (i.e., setting a Spanish company).

Rest assured, this proposal is still in its early stages and will un­dergo thorough scrutiny and debate befare any implementation. The government is committed to ensuring that any new measures are fair and constitutional. We will keep you informed of any developments and provide guidance on how to navigate any changes.

Santiago Lapausa Gonzalez- Partner/Economist

JC&A Abogados

 

Marbella & Benahavis Real Estate: Rising prices, but are sellers overestimating the market?

According to the latest data published, the real estate mar­kets in Marbella and Benahavis continue to show strong performance, with property prices experiencing a steady upward trend. The data confirms the resilience of these sought-after destinations, making them attractive for both buyers and investors. However, an important trend to note is the increasing gap between asking prices and actual closing prices, which reflects the fast selling pace of mar­ket priced properties. Here's an overview of the key trends based on the most recent figures:

1. Consistent Price Growth Over the Years, but a Widen­ing Gap. Property prices in both Marbella and Benahavis have been on a steady rise over the past decade. The charts illustrate a clear appreciation in price per square meter, reflecting sustained demand and market conf1-dence. However, while asking prices (Idealista data) have consistently remained above actual closed sale prices (Land Registry data), the gap between them has widened. This suggests that sellers are setting increasingly ambi­tious prices, requiring buyers to go for market priced prop­erties which are selling fast or to negotiate more aggres­sively to reach final sale agreements.

2. Marbella: A Strong and Expanding Market with Seller Optimism. Marbella continues to demonstrate robust price growth, with both asking and closed transaction pric­es rising significantly over time. The latest figures indicate a sharp increase, particularly since 2020, as demand surged post-pandemic. However, the increasing difference between listing and closing prices suggests that while sellers remain confident in the market's strength, buyers are exercising more caution, leading to extended negotia­tion periods. The interest for Marbella's properties as a preferred luxury destination is still there despite the com­plicated geopolitical situation but pricing expectations may need to adjust to maintain transaction momentum.

«As prices continue to rise, strategic pricing and rea­listic expectations will be key to maintaining a healthy transaction flowª

 

3. Benahavis: Exclusive and Resilient, but Facing Pricing Challenges. Benahavis maintains its position as a premi­um market, characterized by exclusivity and luxury. While it has a lower transaction volume compared to Marbella, the price per square meter remains high, reflecting the area's appeal among affiuent buyers. However, the grow­ing gap between asking and closing prices suggests that even in this high-end market, buyers are more cautious in their purchasing decisions. The area's limited supply of high-end properties contributes to price stability, but sellers may need to realign their expectations to market realities to keep transactions fluid.

The latest real estate data confirms that both Marbella and Benahavis remain highly attractive markets, with sus­tained price growth and strong buyer interest. However, the increasing divergence between asking and closing prices shows a more complex negotiation process, requir­ing both sellers and buyers to adjust their expectations. As prices continue to rise, strategic pricing and realistic ex­pectations will be key to maintaining a healthy transaction flow in these sought-after destinations.

 

Can a new property owner be held responsible for the previous owner´s I.B.I. debts?

The answer is yes, but with certain conditions. While the original debtor is the owner at the time the I.B.I. (Property Tax) receipt is issued, if the previous owner is declared insolvent and the debt has not expired, the new owner could be held responsible for settling that debt.

The procedure through which the tax debt is transferred from the previous owner to the actual owner to ensure that I.B.I. debts do not disappear when a property is transferred is known as affection of assets (afección de bienes). With this in mind, here are some key clarifications:

  1. When can the Tax Administration declare the previous owner insolvent? The administration can do so when, after initiating the enforcement procedure, it is proven that there are no realizable or attachable assets or rights in the name of the debtor.

2. Can the debt be prescribed and, therefore, not be claimed from the new owner? The administration has a four-year period to claim the debt, counting from the end of the I.B.I. self-assessment deadline. However, this period can be interrupted by certain actions taken by the administration itself.

3. Is the entire debt, including surcharges and penalties, transferred to the new owner? No. The debt, as long as it is not prescribed, is transferred to the new owner only for its principal amount, without surcharges or penalties, and within the voluntary payment period. From that moment on, the new owner will be responsible for the pending debt.

4. How to avoid this problem? It is simple. It is only necessary to make sure at the time of buying a property, and in the Notary's office in which the sale is going to be carried out, that there are no previous debts of I.B.I. In the case that there were, the purchase can be conditioned to the extinction of that debt or to retain the due amount to pay it later on in the name of the seller.

 

**This is a general article, and since each case is unique, we recommend consulting with your trusted lawyer or tax advisor if you encounter a problem of this type.

 

Marbella & Benahavís: 2024 Shows strenth and stability on the Real Estate Market of Marbella and Benahavis

Marbella and Benahavis real estate markets have always attracted buyers from around the world, offering a unique blend of luxury living and stunning natural surroundings. Analyzing the latest market data helps us understand key trends and opportunities for both buyers and sellers. Below, we break down the performance of these two sought-after areas in the first three quarters of 2024 and beyond.

1. 2024: A Strong Year for the Market. The year 2024 is proving to be a robust one for real estate in Marbella and Benahavis. By the end of the third quarter, both markets have already reached their average yearly sales, showcasing the sustained strength and appeal of these locations. This milestone underlines the consistent demand for properties, driven mainly by international buyers seeking high-quality investments. With the fourth quarter still ahead, these figures suggest that the market is on track to surpass previous records, reaffirming its position as a global hotspot for luxury real estate.

2. Contrasting Performance Between Marbella and Benahavis. While both markets are performing well, there are notable differences. Benahavis, despite showing solid results, is currently 23.3% below its sales figures from 2023.

This decline, while significant, doesn’t overshadow the area’s appeal to high-end buyers seeking exclusivity and tranquility. In contrast, Marbella has seen a 7.5% increase compared to 2023, which was already a strong year. This growth highlights Marbella’s ability to attract a diverse range of buyers, thanks to its vibrant lifestyle, infrastructure, and reputation as a cosmopolitan hub. These dynamics underline the differences in buyer profiles and investment opportunities between the two areas .

 

3. Market Stability and Long-Term Opportunities. Despite global economic challenges, both markets showcase stability, with annual sales averages holding steady over the past decade. Marbella, in particular, exhibits a higher volume of transactions, reflecting its broader appeal and infrastructure. The area continues to attract investors and homeowners alike, drawn to its combination of modern amenities and cultural richness. Benahavis, while smaller in transaction volume, maintains its exclusivity, catering to a niche clientele that prioritizes privacy and luxury. This duality ensures that both areas remain resilient to market fluctuations, offering security and long-term growth potential for buyers and sellers alike.

The Marbella and Benahavis real estate markets continue to thrive, showcasing stability and resilience. By the end of Q3 2024, sales in both areas have already reached average annual levels, highlighting strong demand. Marbella has outperformed with a 7.5% growth compared to 2023, reflecting its broader market appeal, while Benahavis, although 23.3% below last year, remains a prime choice for luxury seekers. With unique advantages—Marbella standing out for its volume and infrastructure, and Benahavis for its exclusivity—both areas offer exceptional opportunities for sellers and investors in one of Europe’s most desirable regions .

 

Marbella & Benahavis: The Evolution of the 1 Million Euros Plus Property Market

Marbella and Benahavis have long been hotspots for luxu­ry real estate on Spain's Costa del Sol. Recent data on property sales and prices in the Golden Triangle areas re­veal interesting trends that reflect growing demand, price resilience, and the evolving preferences of high-end buy­ers. What the latest figures tell us about the current state and future outlook for these markets is outlined below:

1. Strong Growth in High-Value Sales. The flrst chart tracks the number of property transactions in different price segments across recent years in Benahavis. Sales in the €1.5 million to €4 million range (gray bars) and proper­ties over €4 million (yellow bars) have shown significant growth from 2020 onwards, peaking in 2022. This spike reflects a post-pandemic demand surge, as affiuent buy­ers looked for spacious, high-quality homes in scenic are­as with access to nature and privacy qualities that Bena­havis is known for. lnterestingly, while sales in the €1 million to €1.5 million range (red bars) remained steady, the demand for ultra­luxury homes priced over €4 million saw a notable in­crease. This trend underscores a shift in buyer de­mographics and preferences, with more high-net-worth individuals willing to invest in exclusive properties offering high privacy, premium amenities, and unique locations.

2. 2. Market Share Shifts Toward Higher Price Ranges. Looking at the lines representing the percentage of total transactions in each price range, we can see that the share of sales in the €1.5 million to €4 million and over €4 million segments has grown over time. The percentage of transactions in the €1 million to €1.5 million range has gradually decreased as higher-value properties gain a larg­er portian of the market.

By 2023, properties in the €1.5 million to €4 million range accounted for around 12% of the total sales volume, while those over €4 million made up approximately 6% to 8%.

These trends indicate that the Benahavis market is matur­ing towards a more exclusive tier, with demand increasing­ly concentrated in the luxury and ultra-luxury segments.


3. Consistent Price Appreciation in Both Markets. The second set of charts (next page) illustrates the price evolu­tion per square meter for properties in different price cate­gories in both Marbella and Benahavís from 2014 to 2024. Properties over €4 million in Benahavís (yellow line) show a price peak in 2022, reaching approximately €7,000 per square meter. Prices in the €1.5 to €4 million range (gray line) have also climbed steadily, with recent values around€5,500 per square meter.

In Marbella, the pricing trajectory shows a similar pattern, with prices per square meter in the top-tier segment now approaching €7,500. The data reveal Marbella's position as a highly desirable luxury destination, with prices for properties over €4 million consistently staying above other price ranges. Both markets have shown resilience and steady appreciation, demonstrating their appeal and sta­bility, even in uncertain economic climates.


 

4. Key Takeaways for Buyers and lnvestors. These in­sights suggest that both Marbella and Benahavís are be­coming increasingly attractive to luxury buyers, with prop­erty prices in top segments continuing to rise. Far buyers, this indicates an opportunity far long-term value apprecia­tion in the ultra-luxury sector, particularly as demand out­paces supply in these exclusive markets.

lnvestors can also interpret this data as a sign of strong market fundamentals. The consistent price growth per square meter across all categories indicates a stable in­vestment climate, with properties in the higher price ranges offering potential far salid returns.

As summary and looking at the charts, the trends dis­played reflect the growing exclusivity of Marbella and Benahavís. Far both areas, the premium placed on luxury properties over €1.5 million - especially those in the €4 million and above bracket - continues to intensify. Whether you are a buyer, investor, or seller, the data suggest that the demand far top-tier properties in Marbella and Bena­havís will remain strong, driven by both local appeal and international interest in the Costa del Sol's luxury real es­tate market.


New Division of Keller Williams Spain: KW Commercial Spain & Commercial Corporate.

After months of dedicated work, Keller Williams Spain proudly announced the launch of its new division, Keller Williams Commercial Spain, in mid-2024. This division, much like KW Luxury, which specializes in high-end real estate, will focus on the commercial property sector. Within this division, a dedicated department called Keller Williams Commercial Corporate will handle larger corporate transactions.

The newly established Commercial Division will specialize in real estate transactions across various sectors, including land, buildings, hospitality, offices, retail, and logistics. Agents who wish to operate under the Keller Williams Commercial brand will have the opportunity to earn a specialized Commercial designation. To receive this designation, agents must meet specific criteria, including experience in the commercial real estate market, at least one year of collaboration with Keller Williams, and completion of specialized training in commercial transactions.

The leadership team for Keller Williams Commercial Spain includes Alfonso Lacruz as Executive Director, Paqui Torres as Institutional Relations Director, Juan Camarero as Technical Director, and Juanjo Garcia as Business Development Manager. Together, this team is wellpositioned to lead the new division and offer clients expertise across the diverse commercial real estate landscape in Spain.

Marbella Surges, Benahavis slows: Key insights from second quarter 2024 home sales.

The Spanish Ministry for Housing has just published the home sales figures per municipality for the second quarter of 2024, revealing that the real estate market remains active. We’ve analyzed the data for Marbella and Benahavis, leading to two key observations:

1. Different trends in Marbella and Benahavis. Both municipalities showed slightly different home sale trends. In Marbella, the first half of 2024 saw a 10.2% increase in home sales compared to the same period in 2023. However, it’s important to note that while sales are up year-overyear, the market is still 16.8% behind the record levels seen in 2022. On the other hand, Benahavis experienced a sharper decline, with home sales down 19.9% compared to the first semester of 2023, and an even steeper drop of 37.5% when compared to the peak year of 2022. This divergence in performance reflects local market conditions and possibly differing demand trends between these neighboring municipalities.

2. Sales likely to exceed historical averages. Although  we’re only halfway through the year and the complete data is still forthcoming, it’s highly probable that both Marbella and Benahavis will finish 2024 with home sales above the average of the last 20 years. In Marbella, sales are also expected to exceed the post-pandemic average of the last three years. Benahavis, however, may not reach this benchmark due to the more pronounced slowdown observed in its market, as highlighted earlier. This could point to an adjustment phase, particularly in terms of pricing and buyer preferences in this area.

In conclusion, while the real estate markets in Marbella and Benahavis remain active, they are showing signs of normalization after the effect of the pandemic, especially in terms of volume. This moderation

could have a stabilizing effect on property prices, which is generally positive for long-term market health. Although no major negative indicators are anticipated, some factors - such as rising asking prices and continued international geopolitical uncertainty - may present challenges.

Conversely, the market may benefit from potential interest rate reductions and a shortage of desirable properties, which could continue to drive demand and support prices moving forward.

Property Documentation: The I.B.I. Receipt - What to Look For?

Continuing with our focus on essential property docu-ments, and following my previous article on the Nota Sim-ple, this month I will delve into the details of the I.B.I. re-ceipt.

What is the I.B.I.?

The I.B.I., short for Impuesto de Bienes Inmuebles, is an annual property tax applicable to all real estate in Spain. This local tax must be paid by property owners, regardless of their residential status, to the local council. It’s im-portant to note that the tax is associated with the property itself, not the owner. The revenue from the I.B.I. is used to fund local infrastructure and services provided by the Town Hall.

Who Manages the I.B.I.?

The management of the I.B.I. falls under the Patronato de Recaudación Provincial, which has offices in Marbella, San Pedro de Alcántara, and Estepona. For more information, you can visit their website at www.prpmalaga.es.

When is the I.B.I. Due?

The payment is typically due in early to mid-September each year.

What Information Does the I.B.I. Receipt Contain?

The I.B.I. receipt includes several key pieces of infor-mation:

- Issuing Authority and Tax Details: The receipt will specify the council issuing the tax, the type of tax (I.B.I. Urbana), and the payment deadline.

- Owner/Taxpayer Information: It lists the name, D.N.I. or N.I.E. number, and the mailing address of the owner or taxpayer (this address is not necessarily the address of the property being taxed).

- Taxable Property Address: The address of the property to which the receipt refers.

- Property Identification Numbers: Two key identifiers are used: "Matrícula" and "Referencia Catastral." It also in-cludes relevant dates such as the issue date, deadline, and tax year.

- Total Amount Due: This is calculated from the base tax, plus any applicable interest or penalties for late payment.

- Key Valuation Information: The receipt provides the ca-dastral value of the land and the cadastral value of the building. Generally, the cadastral value of the property is the sum of these two amounts. These values are crucial for calculating other taxes, such as the Plusvalía Municipal or the Transfer Tax, which I have covered in previous arti-cles.

- Cadastral Value Update and Tax Rate: It also indicates when the cadastral values were last updated by the coun-cil and the applicable tax rate (for example, 0.4%).

Your new home awaits.