Marbella and Benahavis Real Estate Trends 2023: Unpacking Q2 Home Sales Insights

In the latest report from the Ministry of Housing, the numbers are in for home sales in the second quarter of 2023, and they reveal a notable 26% decrease in closed transactions for both Marbella and Benahavis. Naturally, this may raise some questions about the state of the real estate market in these areas. Let's break down the key insights:

1.- Interpreting the Numbers: A 26% decline in closed sales might appear substantial, but its significance becomes clearer when we consider the context. We're comparing these figures to the exceptional year of 2022 when historical records for home sales were set. In that extraordinary year, we witnessed an impressive surge, with Marbella's sales soaring by +53% and Benahavis by an astonishing +91% above the average annual transaction count in these regions. While these percentage drops are significant, it's important to note that the first half of 2023 still ranks as the second or third best first half in the real estate history of Marbella and Benahavis. This suggests that while 2023 might not match the remarkable performance of 2022, the real estate market in these municipalities maintains a healthy level of activity.

2.- Looking Ahead: A crucial question arises: Will this trend continue? It's true that we are currently experiencing a cooling in the demand for properties, possibly due to global uncertainties and rising interest rates. However, it's important to remember that Marbella, Benahavis, and the entire Costa del Sol remain highly sought-after destinations in Europe, thanks to their exceptional lifestyle offerings. So, despite a temporary dip in property demand, we anticipate a resurgence in demand once the global situation stabilizes and improves.

3.- Distinguishing Trends: An interesting nuance can be observed in the sales of new versus second-hand properties. In Marbella, the primary drop in closings is affecting the sale of new builds, accounting for 8% of sales, and seeing a notable 73% decrease. In contrast, Benahavis is experiencing a 40% increase in the sales of new units, while sales of second-hand properties have decreased more significantly, by 32,7%.

In summary, although there is a 26% decline in home sales, the real estate market in Marbella and Benahavis remains active. The first half of 2023 is still among the top-performing first halves in the history of these municipalities. The second half of the year, which we expect may show more cooling, will ultimately determine how 2023 concludes. Despite current challenges, the outlook for future years remains positive.

Tendencias Inmobiliarias en Marbella y Benahavís 2023: Análisis de las ventas en el segundo trimestre

Según los últimos datos proporcionados por el Ministerio de Fomento, las cifras de ventas de viviendas en el segundo trimestre de 2023 revelan un notable descenso del 26% en las transacciones cerradas tanto en Marbella como en Benahavís. Naturalmente, esto puede plantear algunas dudas sobre el estado del mercado en estos municipios por lo que se van a desglosar algunos puntos clave:

1.- Interpretar los números: Un descenso del 26% en la venta de viviendas puede parecer sustancial pero todo depende del contexto en el que se analice dicho número. Lo primero es entender que se están comparando estas cifras con las del año 2022 en el que se batieron récords históricos de ventas cerradas y en el que se produjo un aumento espectacular en las ventas al dispararse en un +53% en Marbella y en un increíble +91% en Benahavís respecto a la media anual de transacciones cerradas en dichas poblaciones. Si bien las caídas porcentuales del 26% son significativas, es importante señalar que, aun así, el primer semestre de 2023 se sitúa como el segundo o tercer mejor primer semestre en la historia inmobiliaria de Marbella y Benahavís. Esto sugiere que, si bien 2023 podría no igualar los resultados de 2022, el mercado inmobiliario en estos municipios sigue activo.

2.- De cara al futuro: De entrada se plantea una cuestión crucial: ¿Continuará esta tendencia? Aunque es cierto que actualmente se está experimentando un enfriamiento en la demanda de propiedades posiblemente debido a las incertidumbres geopolíticas y al aumento de los tipos de interés, es importante recordar que Marbella, Benahavís y toda la Costa del Sol siguen siendo destinos muy solicitados en Europa, gracias a su excepcional oferta residencial y de ocio siempre acompañada por un clima inigualable. Así que, a pesar de una caída temporal en la demanda inmobiliaria, se prevé un resurgimiento de la demanda una vez que la situación mundial se estabilice y mejore.

3.- Tendencias diferenciadas: Se observa un matiz interesante en las ventas de propiedades nuevas frente a las de segunda mano. En Marbella, la principal caída en las transacciones ha afectado a la venta de obra nueva, que representa el 8% de los cierres, y que experimenta un notable descenso del 73%. Por el contrario, Benahavís ha experimentado un aumento del 40% en las ventas de unidades de obra nueva, mientras que las ventas de propiedades de segunda mano han disminuido un significativo 32,7%.

En resumen, aunque se registra un descenso del 26% en el número de viviendas vendidas, las perspectivas del mercado inmobiliario de Marbella y Benahavís, a pesar de los retos actuales, siguen siendo positivas.

Unpacking Q2 home sales insights

In the latest report from the Ministry of Housing, the numbers are in for home sales in the second quarter of 2023, and they reveal a notable 26% decrease in closed transactions for both Marbella and Benahavis. Naturally, this may raise some questions about the state of the real estate market in these areas. Let's break down the key insights:

1.- Interpreting the Numbers: A 26% decline in closed sales might appear substantial, but its significance becomes clearer when we consider the context. We're comparing these figures to the exceptional year of 2022 when historical records for home sales were set. In that extraordinary year, we witnessed an impressive surge, with Marbella's sales soaring by +53% and Benahavis by an astonishing +91% above the average annual transaction count in these regions. While these percentage drops are significant, it's important to note that the first half of 2023 still ranks as the second or third best first half in the real estate history of Marbella and Benahavis. This suggests that while 2023 might not match the remarkable performance of 2022, the real estate market in these municipalities maintains a healthy level of activity.

    2.- Looking Ahead: A crucial question arises: Will this trend continue? It's true that we are currently experiencing a cooling in the demand for properties, possibly due to global uncertainties and rising interest rates. However, it's important to remember that Marbella, Benahavis, and the entire Costa del Sol remain highly sought-after destinations in Europe, thanks to their exceptional lifestyle offerings. So, despite a temporary dip in property demand, we anticipate a resurgence in demand once the global situation stabilizes and improves.

3.- Distinguishing Trends: An interesting nuance can be observed in the sales of new versus second-hand properties. In Marbella, the primary drop in closings is affecting the sale of new builds, accounting for 8% of sales, and seeing a notable 73% decrease. In contrast, Benahavis is experiencing a 40% increase in the sales of new units, while sales of second-hand properties have decreased more significantly, by 32,7%.

In summary, although there is a 26% decline in home sales, the real estate market in Marbella and Benahavis remains active. The first half of 2023 is still among the top-performing first halves in the history of these regions. The second half of the year, which we expect may show more cooling, will ultimately determine how 2023 concludes. Despite current challenges, the outlook for future years remains positive.

Análisis de las ventas en el segundo trimestre en Marbella y Benahavís

Según los últimos datos proporcionados por el Ministerio de Fomento, las cifras de ventas de viviendas en el segundo trimestre de 2023 revelan un notable descenso del 26% en las transacciones cerradas tanto en Marbella como en Benahavís. Naturalmente, esto puede plantear algunas dudas sobre el estado del mercado en estos municipios por lo que se van a desglosar algunos puntos clave:

1.- Interpretar los números: Un descenso del 26% en la venta de viviendas puede parecer sustancial pero todo depende del contexto en el que se analice dicho número. Lo primero es entender que se están comparando estas cifras con las del año 2022 en el que se batieron récords históricos de ventas cerradas y en el que se produjo un aumento espectacular en las ventas al dispararse en un +53% en Marbella y en un increíble +91% en Benahavís respecto a la media anual de transacciones cerradas en dichas poblaciones. Si bien las caídas porcentuales del 26% son significativas, es importante señalar que, aun así, el primer semestre de 2023 se sitúa como el segundo o tercer mejor primer semestre en la historia inmobiliaria de Marbella y Benahavís. Esto sugiere que, si bien 2023 podría no igualar los resultados de 2022, el mercado inmobiliario en estos municipios sigue activo.

2.- De cara al futuro: De entrada se plantea una cuestión crucial: ¿Continuará esta tendencia? Aunque es cierto que actualmente se está experimentando un enfriamiento en la demanda de propiedades posiblemente debido a las incertidumbres geopolíticas y al aumento de los tipos de interés, es importante recordar que Marbella, Benahavís y toda la Costa del Sol siguen siendo destinos muy solicitados en Europa, gracias a su excepcional oferta residencial y de ocio siempre acompañada por un clima inigualable. Así que, a pesar de una caída temporal en la demanda inmobiliaria, se prevé un resurgimiento de la demanda una vez que la situación mundial se estabilice y mejore.

3.- Tendencias diferenciadas: Se observa un matiz interesante en las ventas de propiedades nuevas frente a las de segunda mano. En Marbella, la principal caída en las transacciones ha afectado a la venta de obra nueva, que representa el 8% de los cierres, y que experimenta un notable descenso del 73%. Por el contrario, Benahavís ha experimentado un aumento del 40% en las ventas de unidades de obra nueva, mientras que las ventas de propiedades de segunda mano han disminuido un significativo 32,7%.

En resumen, aunque se registra un descenso del 26% en el número de viviendas vendidas, las perspectivas del mercado inmobiliario de Marbella y Benahavís, a pesar de los retos actuales, siguen siendo positivas.

Is it worth investing in Marbella´s Real Estate?

I would say, it depends on various factors including the type of asset, the specific property, and the timing of the investment. The primary aim of this article is not to delve into an exhaustive analysis of each real estate asset category as the returns may change for the different options flipping, land development, distressed properties, etc. For instance, land investments often demand more time, whereas distressed properties might yield higher profits, particularly from a short-term perspective where timing is crucial. Investors who ventured into Marbella's real estate market in 2001 or 2013 arguably reaped substantial returns, while those who entered in 2007 faced losses instead of gains. The core idea is to approach real estate investments from a long-term standpoint that is less susceptible to market volatility.

Initially, two primary sources of profit are linked to real estate: income derived from rentals, whether for holidays or long-term leasing, and the appreciation of real estate values, i.e., price increases. Profitability arises from the combination of these two elements.

When examining Chart 1, which illustrates Spain's home profitability (in red) alongside Gross Rental Profitability (in blue) and real estate market price fluctuations (in green), one can discern that the past two decades featured periods of loss, such as 2012, as well as periods of substantial returns, notably from 2001 to 2005, averaging around 17% per annum.

The first component, Gross Rental Profitability, exhibits less volatility than home prices and has remained relatively stable over the past decade, hovering at approximately 4%. Between 2001 and 2013, it experienced more fluctuations but still maintained an average of 3.8%. Taking a 20-year perspective, the overall average stands at 3.9%. However, these percentages pertain to Gross Rental Profitability. But what about Net Rental Income? To obtain the Net figure, operating and maintenance costs must be subtracted, which is estimated at an average of 1.9% of the gross profit. Consequently, the yearly average Net Rental Income is roughly 2%.

The second component, the increase in Marbella's home prices, is summarized in Chart 2. Here, it's observable that the average annual increase over the past two decades stands at 3.5%. There were years marked by substantial price hikes, such as the period from 2001 to 2007, as well as years with price declines, occurring between 2009 and 2013. The current The question then arises: can this be regarded as a sound investment?

Once again, the answer depends on the yardstick used for comparison. Let's explore various investment options to determine where real estate in Marbella stands, as depicted in Chart 4, illustrating the average 20-year trends.

Chart 4 presents a comprehensive view of seven distinct investment assets, showcasing their average annual 20-year returns on investment. Notably, the stock market, particularly the US stock market, emerges as the top performer in long-term returns, followed closely by gold. Bonds, cash, and commodities, on the other hand, offer returns of below 3% on a yearly long-term basis. It's worth noting that there are alternative investments, like cryptocurrencies, that may yield higher returns, but they come with substantial volatility and associated risks. As the adage goes, higher risks can lead to higher returns, but this isn't the kind of investment we aimed to compare with.

To summarize, long-term investing in real estate in Marbella is poised to deliver an average yearly return of 5.5%, a rate that proves quite appealing for a moderate-profile, long-term investor. It's also attractive for individuals who view their property acquisition primarily as a means to relish the high quality of life Marbella has to offer but are mindful that, over the long haul, it can also serve as a sound investment.

CHART 3 - THE LUXURY HOME PRICES IN MARBELLA

CHART 4 - THE LUXURY HOME PRICES IN BENAHAVIS

¿Vale la pena invertir en bienes raíces en Marbella?

Diría que depende de varios factores, incluido el tipo de activo, la propiedad específica y el momento de la inversión. El objetivo principal de este artículo no es profundizar en un análisis exhaustivo de cada categoría de activos inmobiliarios, ya que los rendimientos pueden variar para las diferentes opciones como la compra para vender, el desarrollo de terrenos, las propiedades en dificultades, etc. Por ejemplo, las inversiones en terrenos a menudo requieren más tiempo, mientras que las propiedades en dificultades pueden generar mayores ganancias, especialmente desde una perspectiva a corto plazo donde el momento es crucial. Los inversores que se aventuraron en el mercado inmobiliario de Marbella en 2001 o 2013 probablemente obtuvieron ganancias sustanciales, mientras que los que ingresaron en 2007 enfrentaron pérdidas en lugar de ganancias. La idea central es abordar las inversiones inmobiliarias desde una perspectiva a largo plazo que sea menos susceptible a la volatilidad del mercado. Inicialmente, existen dos fuentes principales de ganancias relacionadas con el sector inmobiliario: Los ingresos derivados de alquileres, ya sea para vacaciones o arrendamientos a largo plazo, y la apreciación de los valores inmobiliarios, es decir, el aumento de los precios. La rentabilidad surge de la combinación de estos dos elementos. Al examinar el Gráfico 1, que ilustra la rentabilidad de las viviendas en España (en rojo) junto con la Rentabilidad Bruta de Alquiler (en azul) y las fluctuaciones de los precios del mercado inmobiliario (en verde), se puede discernir que las dos últimas décadas han tenido períodos de pérdidas, como en 2012, así como períodos de retornos sustanciales, especialmente de 2001 a 2005, con un promedio de alrededor del 17% anual.

El primer componente, la Rentabilidad Bruta de Alquiler, muestra menos volatilidad que los precios de las viviendas y ha permanecido relativamente estable en la última década, rondando aproximadamente el 4%. Entre 2001 y 2013, experimentó más fluctuaciones pero aún mantuvo un promedio del 3.8%. Tomando una perspectiva de 20 años, el promedio general es del 3.9%. Sin embargo, estos porcentajes se refieren a la Rentabilidad Bruta de Alquiler. ¿Pero qué hay de los Ingresos Netos por Alquiler?. Para obtener la cifra neta, se deben restar los costos operativos y de mantenimiento, estimados en un promedio del 1.9% del beneficio bruto. En consecuencia, el promedio anual de los Ingresos Netos por Alquiler es aproximadamente del 2%.  El segundo componente, el aumento en los precios de las viviendas en Marbella, se resume en el Gráfico 2.

GRÁFICO 1 - MERCADO INMOBILIARIO DE LUJO EN MARBELLA

GRÁFICO 2 - MERCADO INMOBILIARIO DE LUJO EN BENAHAVIS

Aquí, se puede observar que el aumento anual promedio en las últimas dos décadas es del 3.5%. Hubo años marcados por incrementos sustanciales de precios, como el período de 2001 a 2007, así como años con declives de precios, ocurridos entre 2009 y 2013.

Entonces surge la pregunta: ¿se puede considerar esto como una inversión sólida? Una vez más, la respuesta depende de la medida utilizada para la comparación. Examinemos diversas opciones de inversión para determinar dónde se encuentra el mercado inmobiliario en Marbella, como se muestra en el Gráfico 4, que ilustra las tendencias promedio de 20 años. El Gráfico 4 ofrece una visión completa de siete activos de inversión distintos, mostrando sus rendimientos promedio anuales de 20 años. Destaca especialmente el mercado de valores, en particular el mercado de valores de Estados Unidos, como el mejor en términos de rendimiento a largo plazo, seguido de cerca por el oro. Por otro lado, bonos, efectivo y materias primas ofrecen rendimientos por debajo del 3% anual a largo plazo. Es importante señalar que existen inversiones alternativas, como las criptomonedas, que pueden generar rendimientos más altos, pero vienen acompañadas de una considerable volatilidad y riesgos asociados. Como dice el refrán, mayores riesgos pueden llevar a mayores ganancias, pero este no es el tipo de inversión que estábamos buscando comparar. En resumen, la inversión a largo plazo en bienes raíces en Marbella está posicionada para ofrecer un rendimiento promedio anual del 5.5%, una tasa que resulta bastante atractiva para un inversor a largo plazo con un perfil moderado. También es atractiva para las personas que ven la adquisición de propiedades principalmente como una forma de disfrutar de la alta calidad de vida que Marbella ofrece, pero son conscientes de que, a largo plazo, también puede ser una inversión sólida.

GRÁFICO 3 - PRECIOS EN EL MERCADO DE LUJO EN MARBELLA

GRÁFICO 4 - PRECIOS EN EL MERCADO DE LUJO EN BENAHAVIS

¿Cómo empezó 2023 el mercado inmobiliario de lujo en Marbella y Benahavís?

Realmente parece que el mercado inmobiliario en Marbella y Benahavís está entrando en una fase de normalización según la percepción de nuestro propio equipo y lo que se ha comentado con algunos profesionales inmobiliarios como abogados o agentes inmobiliarios.

Durante el pasado año, 2022, el mercado alcanzó un récord histórico en términos de transacciones cerradas con un ritmo de actividad bastante rápido, con propiedades que encontraron comprador en menos de una semana y precios finales que incluso superaron los precios iniciales de venta dando lugar a incrementos de precios de incluso dos dígitos.

Como destacamos en nuestros recientes newsletters, el comienzo de 2023 ha traído buenas noticias para el sector inmobiliario local a pesar de la preponderancia de noticias económicas desfavorables. Aunque el número de ventas ha experimentado una ligera disminución en comparación con el año anterior, este año sigue siendo sólido en términos de transacciones, y los precios se están empezando a estabilizar. Esta tendencia es realmente beneficiosa para mantener la demanda sin generar alarmas.

GRÁFICO 1 - MERCADO INMOBILIARIO DE LUJO EN MARBELLA

GRÁFICO 2 - MERCADO INMOBILIARIO DE LUJO EN BENAHAVIS

En términos generales, el mercado de alto nivel muestra asimismo un comportamiento alentador, como lo demuestran los gráficos adjuntos que detallaremos a continuación:

1. En Marbella, se ha producido un ligero aumento en la proporción de viviendas de lujo vendidas de la gama más alta (por encima de 1,5 millones de euros) en comparación con el total de viviendas vendidas. Por el contrario, hay un descenso del 0,6% en las ventas de propiedades con precios entre 1 y 1,5 millones de euros. Este segmento en particular está experimentando un impacto significativo debido a la escasez de propiedades disponibles, de ahí la disminución de las ventas. En consecuencia, el crecimiento de las transacciones de propiedades de lujo, que se había duplicado en los últimos cinco años, se ha moderado. Aun así, se mantiene en niveles similares a los del año pico, 2022.

 2. En Benahavís se aprecia un patrón similar, aunque con ritmos distintos. Las ventas de propiedades que superan los 4 millones de euros y las que tienen un precio entre 1,5 y 4 millones de euros continúan en aumento. Mientras tanto, las transacciones de propiedades entre 1 y 1,5 millones de euros han experimentado un descenso. Este declive puede atribuirse de nuevo a la escasez de oferta en ese rango de precios. Cabe destacar que se ha producido un aumento sustancial en el volumen de ventas de propiedades con un precio entre 1,5 y 4 millones de euros, triplicándose la proporción en los últimos cinco años y con un incremento adicional del 2% a comienzos de 2023.

3. En lo que respecta a los precios en Marbella, se observa un alza continua en todos los niveles de propiedades. De hecho, se puede apreciar en el gráfico 3 que las propiedades por encima de los 4 millones de euros son las que experimentan el mayor incremento, lo que evidencia la robustez de este segmento de mercado de alta gama. Esto ha llevado a que la media de precios alcance, por primera vez, los 10.000 euros/m².

4. En Benahavís las formas de las curvas del gráfico 4 son similares a las de Marbella pero aún en niveles de precio más bajo. Los precios en los niveles más altos son los que suben con más fuerza y llegan a los 8.000 euros/m², pero todavía 2.000 euros/m² por debajo de Marbella.

En resumen, a pesar de todas las noticias económicas negativas que nos bombardean día a día, el mercado inmobiliario de alta gama mantiene una trayectoria positiva observándose un mayor porcentaje de operaciones cerradas en estos niveles y unos precios que continúan en ascenso en este inicio de un año, que en principio, se prevé incierto.

GRÁFICO 3 - PRECIOS EN EL MERCADO DE LUJO EN MARBELLA

GRÁFICO 4 - PRECIOS EN EL MERCADO DE LUJO EN BENAHAVIS

How did the Luxury Real Estate Market start 2023 in Marbella and Benahavis?

It appears that the real estate market in Marbella and Benahavis is entering into a phase of stabilization: that is our team’s feeling and what has emerged in conversations with real estate professionals such as lawyers or real estate agents.

Last year, 2022, the market achieved an all-time high in closed transactions. The pace of activity was quite rapid, with properties being sold in under a week and final prices even surpassing initial asking prices, leading to double-digit price increase.

As highlighted in our recent newsletters, the start of 2023 has been encouraging for the local real estate sector despite the prevailing negative economic news. While the number of sales has slightly decreased compared to 2022, 2023 has seen a robust performance in terms of transactions, and prices are stabilizing. This trend is actually beneficial to maintain demand without causing alarm. Let's now delve into the state of the high-end market.

CHART 1 - THE LUXURY MARKET IN MARBELLA

CHART 2 - THE LUXURY MARKET IN BENAHAVIS

In general, the luxury market is also displaying a positive performance as seen on the accompanying charts that I will now elaborate on in more detail:

1. In Marbella the percentage of high-end luxury homes sold (above 1.5 million euros) has increased slightly compared to the total number of homes sold. Conversely, there's a 0.6% decline in sales of properties priced between 1 and 1.5 million euros. This particular range is experiencing a strong impact due to a shortage of available properties, hence the decrease in sales. Consequently, the growth in high-end property transactions, which had doubled over the last five years, has moderated. However, it remains at levels akin to the peak year, 2022.

 2. A similar pattern is visible in Benahavis, but with varying rates. Sales for properties exceeding 4 million euros and those priced between 1.5 and 4 million euros keep rising. Meanwhile, transactions for properties between 1 and 1.5 million euros have decreased. This decline can also be attributed to the scarcity of stock in that range. Notably, there has been a substantial surge in sales volume for properties priced between 1.5 and 4 million euros, with the percentage of transactions tripling over the past 5 years and an additional 2% increase noted at the start of 2023.

3. In terms of pricing in Marbella, prices keep rising for all types of properties. In fact, it can be appreciated on chart 3 that properties above 4 million euros are the ones with a higher increase, showing the strength of this high end market and reaching an average, for the first time, of 10.000 euros/sqmt.

4. In Benahavis the tendency of the curves on chart 4 is similar to Marbella but still on lower price levels. The prices on the highest levels are the ones going up with more strength and reaching 8.000 euros/sqmt. but still 2.000 euros/sqmt. lower than Marbella.

In summary, despite all the negative economic news that unsettles us every day, the high end real estate market is performing well: a higher percentage of transactions was closed on those levels and prices still kept on rising at the beginning of this uncertain year

CHART 3 - THE LUXURY HOME PRICES IN MARBELLA

CHART 4 - THE LUXURY HOME PRICES IN BENAHAVIS

What are the prices doing in the Real Estate market of Marbella & Benahavis?

After the publication of the information on prices by the Ministry of Housing, the Land Registrars Association and the real estate portal Idealista for the first quarter of 2023, the first conclusion is that prices keep on with the same upward trend with several key points that are worth noting:

1. Firstly, in Marbella, the asking prices continue to rise at a quarterly rate of 4.0% and a yearly rate of 18.6%, showing no signs of slowing down. Prior to the pandemic, yearly increases in asking prices remained below 10%. However, the current increase has reached nearly 20%, which I believe is unsustainable in the medium term and may negatively impact the market. Although the market is performing well and inventory

 2. On the other hand, the closing prices of properties in Marbella during the first quarter of 2023 did not increase compared to the previous quarter. Whether this is merely a conjunctural fact or an indication of a deceleration in price increases will become clearer when the information for the second quarter is released.

3. A similar trend can be observed in Benahavis, albeit at different rates. The asking prices are still rising, but at a more moderate quarterly rate of 1.0% and a yearly rate of 7.5%. While closing prices for homes are still increasing on a yearly basis, they experienced a notable decrease of 4.8% in the last quarter. I believe this reduction may be circumstantial, and we can expect a stabilization of closing prices when data for the second quarter, which had increased activity, is released. Therefore, an eye should be monitoring those numbers.

4. Regarding the gap between asking prices and closing prices, the difference remains around 20%, with slightly higher values in Benahavis, representing the highest level since 2016.

5. Just to be noted that the valuation prices, indicated in red on the chart for Marbella, are another 11% below the closing prices and on an upward tendency.

In summary, the tendency shows prices going up, maybe too much when considering asking prices, although with some moderation in the last quarter. The data for the second quarter will reveal whether the slowdown in price increases observed in the first quarter is merely circumstantial or a necessary trend towards moderation.

¿Cómo se están comportando los precios en Marbella y Benahavís?

Tras la publicación de los datos sobre precios en el mercado inmobiliario de la Costa del Sol para el primer trimestre de 2023 por parte del Ministerio de Fomento, el Colegio de Registradores y el portal inmobiliario Idealista, la primera conclusión es que los precios siguen con la misma tendencia al alza con varios puntos clave que merece la pena destacar:

1. En primer lugar y en Marbella, los precios de salida siguen subiendo a un ritmo trimestral del 4,0% y anual del 18,6% sin mostrar signos de desaceleración. Antes de la pandemia, los aumentos anuales de los precios de salida se mantenían por debajo del 10%. Sin embargo, el aumento actual ha alcanzado casi el 20%, lo que pienso que puede ser insostenible a medio plazo y puede afectar negativamente al mercado

que aunque sigue funcionando bien y el inventario sigue siendo limitado, nuevos aumentos de los precios de venta pueden reducir la demanda.

2. Por otro parte, los precios de cierre de venta de las propiedades en Marbella durante el primer trimestre de 2023 no aumentaron en comparación con el trimestre anterior. Si esto es simplemente coyuntural o un indicativo de una desaceleración en el aumento de los precios quedará más claro cuando se publiquen los datos del segundo trimestre.

3. En Benahavís se observa una tendencia similar, aunque a un ritmo diferente. Los precios de venta siguen subiendo, pero a una tasa trimestral más moderada del 1,0% y a una tasa anual del 7,5%. Aunque los precios de venta de las viviendas siguen aumentando anualmente, experimentaron un notable descenso del 4,8% en el último trimestre. Creo que esta bajada puede ser coyuntural, y podemos esperar una estabilización de los precios de venta cuando se publiquen los datos del segundo trimestre, en el que aumentó la actividad, por lo que habrá que estar atentos a esas cifras.

4. En cuanto a la brecha entre precios de salida y precios de cierre, la diferencia se mantiene en torno al 20%, con valores ligeramente superiores en Benahavís, lo que representa el nivel más alto desde 2016.

5. Sólo apuntar que los precios de tasación, indicados en rojo en el gráfico para Marbella, están otro 11% por debajo de los precios de cierre y en tendencia alcista.

 En resumen, la tendencia muestra precios al alza, quizá demasiado si se consideran los precios de salida, aunque con cierta moderación en el último trimestre. Los datos del segundo trimestre revelarán si la ralentización de la subida de precios observada en el primero es meramente coyuntural o una necesaria tendencia a la moderación.

Is the Real Estate market of Marbella & Benahavis facing a downturn?

The data of closed transactions for the first quarter of 2023 was published last week by the Ministry of Housing showing interesting numbers that will be analyzed in this article:

1. First of all, there have been numerous comments about the slowdown of the real estate market, and to some extent, they hold true. In Benahavis, we observed an 8,8% decrease in the number of sales compared to the same quarter of 2022. In Marbella, this reduction reached a significant figure of 17,4% when compared to the corresponding quarter of the previous year. It is important to note that 2022 marked the best year in the history of the real the estate market in the area. Despite these declines in number of closed transactions, the first quarter of 2023 still ranks among the top five years in the real estate market of Costa del Sol. Moreover, it surpasses the average number of transactions closed in the first quarter over the last ten years, with Benahavis leading at 47% above the ten-year average and Estepona trailing at 7% above.

2. When we focus specifically on the sale of second-hand properties, the situation becomes even more noteworthy. In Benahavis, there has been a remarkable 10,3% increase in the number of closings for second-hand homes. This growth is particularly remarkable given the reports on the real estate market slowdown and the exceptional year experienced in 2022. On the other hand, Marbella lived a 7,2% decrease in the number of closings for second-hand properties, yet it remains the second-best year in the city's real estate history.

3. However, when we turn our attention to the sale of new units, the numbers paint a discouraging picture. There have been significant reductions in the closing of newly constructed properties, with some cases experiencing a decline of nearly 90%. It is important to note that the Ministry's data, based on the records from the Land Registry, count a sale when units are completed, the buying deed is signed at the Notary, and the sale is registered at the Land Registry. This means that the recorded closings in this quarter represent sales that were signed months or even years in advance of the completion of the properties, mainly in 2022 but with construction initiated in 2019 or 2020, which was also affected by the pandemic-related delays. Looking ahead, we can expect an increase in the number of sold properties in the coming quarters, as new homes are delivered. These sales will account for the units sold during 2021 and 2022. In fact, as we mentioned in our previous newsletter, there is a shortage of new properties, as the inventory continues to decline due to high demand, while construction levels remain lower than those seen during the boom years from 2001 to 2007. You can refer to the attached chart for a visual representation.

 In summary, the real estate market remains fairly active, although it has slowed down compared to the record-breaking year of 2022. The limited availability of newly built properties may further promote the sales of second-hand homes.

 Fuente: Colegio de Registradores de España; Ministerio de Fomento.

¿Está el mercado inmobiliario de Marbella y Benahavís en recesión?

 El Ministerio de Vivienda publicó la semana pasada los datos de las transacciones cerradas durante el primer trimestre de 2023, revelando cifras cuando menos interesantes que van a  analizarse en este artículo:

1. Se han estado escuchando muchos comentarios sobre la desaceleración del mercado inmobiliario y, de alguna manera, son ciertos. En Benahavís, se ha observado una disminución del 8,8% en el número de ventas en comparación con el mismo trimestre de 2022 mientras que en Marbella ese mismo porcentaje de reducción alcanzó la significativa cifra del 17,4%, siempre en comparación con el mismo trimestre de 2022. Cabe destacar aquí es que 2022 fue el mejor año en la historia del mercado inmobiliario en la zona por lo tanto, a pesar de estas reducciones en el número de transacciones cerradas, el primer trimestre de 2023 ha sido uno de los cinco mejores años en el sector inmobiliario de la Costa del Sol, muy por encima del promedio de las transacciones cerradas en el primer trimestre de los últimos 10 años, siendo Benahavís el mejor con un 47% por encima de ese promedio y Estepona el peor con un 7% por encima.

2. Si nos centramos en la venta de viviendas de segunda mano, la situación es aún más relevante. En Benahavís, ha habido un aumento del 10,3% en el número de transacciones de segunda mano, lo cual suena asombroso si tenemos en cuenta las noticias sobre la desaceleración del mercado inmobiliario y después de un histórico 2022. Por otro lado, hay una disminución del 7,2% en el número de cierres en Marbella, pero, de todas formas, sigue siendo el segundo mejor año en la historia del mercado inmobiliario de esa ciudad.

3. Sin embargo, si observamos la venta de unidades nuevas, los números son desalentadores. Hay reducciones cruciales en el número de transacciones de nueva construcción, llegando en muchos casos al 90%.  Cabe destacar aquí que los números del Ministerio, basados en los que proporciona el Registro de la Propiedad, cuentan una venta cuando las viviendas están terminadas, se firma la escritura de compra en el Notario y se inscribe en el Registro de la Propiedad, no cuando se realiza la venta efectiva mediante la firma de un contrato privado de compraventa que, en muchos casos, se formaliza antes de que las propiedades estén terminadas. Por lo tanto, y en general, los cierres contabilizados en este trimestre son ventas firmadas meses o años antes de la finalización de las viviendas, principalmente en 2022 y, por lo tanto, iniciadas en 2019 o 2020, el año de la pandemia, cuando todo, incluida la construcción de nuevos complejos, se retrasó. En los próximos trimestres, veremos un aumento en los números de ventas, asociados con la entrega de las propiedades, de nuevas viviendas que representarán todas las ventas de estas unidades que tuvieron lugar durante 2021 y 2022.

De hecho, y recordando lo que se escribió en nuestro último newsletter, hay escasez de propiedades nuevas, ya que la mayoría de las nuevas propiedades se están vendiendo y los niveles de construcción siguen siendo mucho más bajos que los que se vieron durante los años de boom, entre 2001 y 2007, como se puede observar en el mismo gráfico que se adjuntó a ese mismo artículo.

En resumen, el mercado inmobiliario sigue siendo bastante activo, aunque un poco más lento en comparación con el año récord de 2022, y la escasez de viviendas de nueva construcción puede impulsar las ventas de viviendas de segunda mano.

 Fuente: Colegio de Registradores de España; Ministerio de Fomento.

The 3% retention to non-residents when selling in Spain

Are you aware that if you are a non-resident in Spain and you are selling a property, the buyer will have to retain 3% of the agreed price to deposit it at the Spanish Tax Office?

1. Why is that? Every seller in Spain will have to pay taxes for the profit generated when selling a piece of real estate, i.e. a property. The taxes vary depending on your fiscal residency, that is if you are a tax resident in Spain or not, the profit obtained and should be calculated by your lawyer or tax advisor (check my previous article on that subject).

If you are tax resident in Spain, which shall be proved by a certificate of the Spanish Tax Office to be presented to the Notary that prepares the selling deed, you will pay the taxes on the profit generated in June of the year following the one when the profit was generated.

If you are not a tax resident in Spain, the Spanish Tax Office considers that it may be more difficult to clear the tax once the transaction is fully closed so it established the 3% retention that the buyers are obliged to deposit at the Tax Office in thirty days after the closing and derives the liability on depositing that amount to the buyer. That avoids non-paid taxes and future problems with non-residents that may have left already the country.

2. What if the amount deposited is higher than the profit tax to be paid? In this case, the seller has to present a tax declaration, in three months after the one month period the buyer has to deposit the 3% retained, informing the Tax Office about the profit generated or even if there is no profit. Once the Tax Office checks the Tax declaration and that there are no other non-paid taxes by that individual, it will refund the difference between the amount deposited and the actual tax. In our experience those refunds are taking between six months and one year.

3. What if the 3% retained is not enough to cover the profit tax generated? Is this case, the seller also has to present a profit tax declaration in the same period as before and pay the additional amount to cover the full tax amount.

* Since each particular case is different, it is highly recommendable that you check your own tax situation with your lawyer or tax advisor.

Are we close to another 2008´s, Real Estate bubble bursting?

We would say that we do not think so for five reasons: much less construction, what is being built is being sold, much less inventory, credits much more controlled, reasons for the growth are still there—lifestyle. We are going to base the reasoning on the information provided recently by the Ministry of Housing for 2022 on the number of homes being initiated and finished and the rate of sales of new units.

1. As it can be easily seen with Chart 1, in 2004 42.000 new properties were initiated in the Malaga province while in 2022 only 6.891 were started which represents only 16% of what was happening in 2004. Although the chart only covers from 2004 onwards, the peak of new construction was reached in the province of Malaga in 2003 with 83.274 units that means 12 times more than now. We have heard that there is a lot of construction now but it is nothing compared to what we had on the boom years.

2. Independently of the number of homes being built, the important number is how many of those are being sold. The green line on Chart 1 shows the number of new units sold versus the ones finished. In 2021 and 2022 the number is over 100% so more new units are sold than the ones being finished so the stock of new homes is being reduced. If we check that line in the boom years, between 2004 and 2007, only 40% of the new builts were being sold so, with the levels of construction mentioned on the above paragraph, the stock of unsold new homes was growing and growing crazily until the bubble burst in 2008.

3. As said, with lots of unsold inventory in 2008, what was the consequence? Massive reductions in price to be able to sell that collapsed the market and forced the bankruptcy of many  developers that had been attracted by the fast growth of the market and left leaving those properties to be repossessed by banks. The situation of the inventory is completely different now. That situation is shown by the red line on the chart.

4. These developers were extremely active because of the easy access to loans that the banks were promoting that was really the main cause of the problem. Nowadays, having learned the lesson of 2008, banks are much more restrictive with the credits to developers and they have created special departments for these operations.

5. We have seen in the last years that the Costa del Sol has become a destination not only for those looking to enjoy a deserved retirement after a long working life but also to people looking for the great lifestyle that Marbella & Benahavis are offering.

In summary, for the reasons we have exposed we don't think the situation is right now even closer to what happen in 2008. We are feeling a cooling down of the market caused by the macro economic situation and the increase in interest rates but we are facing a “normal” year after an extremely active and record year 2022.

Source: Colegio de Registradores de España

¿Estamos en otra burbuja inmobiliaria como la de 2008?

Nosotros diríamos que no lo creemos por cinco razones: mucha menos construcción, lo que se construye se vende, mucho menos inventario, créditos mucho más controlados, las razones del crecimiento siguen ahí-estilo de vida. Vamos a basar el razonamiento en la información facilitada recientemente por el Ministerio de Vivienda para 2022 sobre el número de viviendas iniciadas y terminadas y el ritmo de ventas de nuevas unidades.

1. Como se puede ver fácilmente con el Gráfico 1, en 2004 se iniciaron 42.000 nuevas viviendas en la provincia de Málaga mientras que en 2022 sólo se iniciarán 6.891 lo que representa sólo el 16% de lo que ocurría en 2004. Aunque el gráfico sólo cubre desde 2004 en adelante, el pico de nueva construcción se alcanzó en la provincia de Málaga en 2003 con 83.274 unidades que significa 12 veces más que ahora. Hemos oído que ahora hay mucha construcción pero no es nada comparado con lo que hubo en los años del boom.

2. Independientemente del número de viviendas que se construyan, la cifra importante es cuántas de ellas se venden. La línea verde del gráfico 1 muestra el número de unidades nuevas vendidas frente a las terminadas. En 2021 y 2022 la cifra es superior al 100%, por lo que se venden más unidades nuevas que las que se terminan, de modo que el stock de viviendas nuevas se está reduciendo. Si comprobamos esa línea en los años del boom, entre 2004 y 2007, sólo se vendían el 40% de las nuevas construidas por lo que, con los niveles de construcción mencionados en el párrafo anterior, el stock de viviendas nuevas sin vender crecía y crecía de forma alocada hasta el estallido de la burbuja en 2008.

3. Como se ha dicho, con mucho inventario sin vender en 2008, ¿cuál fue la consecuencia? Bajadas masivas de precio para poder vender que colapsaron el mercado y forzaron la quiebra de muchos promotores que se habían visto atraídos por el rápido crecimiento del mercado y se marcharon dejando esas viviendas para ser embargadas por los bancos. Ahora la situación del inventario es completamente diferente. Esa situación la muestra la línea roja del gráfico.

4. Estos promotores eran extremadamente activos debido al fácil acceso a los préstamos que los bancos estaban promoviendo que era realmente la causa principal del problema. Hoy en día, aprendida la lección de 2008, los bancos son mucho más restrictivos con los créditos a promotores y han creado departamentos especiales para estas operaciones.

5. Hemos visto en los últimos años que la Costa del Sol se ha convertido en un destino no sólo para aquellos que buscan disfrutar de una merecida jubilación después de una larga vida laboral, sino también para personas que buscan el gran estilo de vida que Marbella y Benahavís ofrecen.

En resumen, por las razones que hemos expuesto no creemos que la situación sea ahora mismo ni siquiera parecida a lo que ocurrió en 2008. Estamos sintiendo un enfriamiento del mercado causado por la situación macroeconómica y la subida de los tipos de interés pero estamos ante un año "normal" después de un año 2022 extremadamente activo y de récord.

Fuente: Colegio de Registradores de España

4 reasons why you should hire a professional real estate agent

Hiring a professional real estate agent can be one of the best decisions you make in the process of buying or selling a property. There are many reasons why a real estate agent can help you get the best results, and in this article we will explore some of them.

1. A professional real estate agent has a thorough understanding of the real estate market. They know what the current market trends are, how prices are moving and which areas are in high demand. This experience and knowledge allows them to guide you in making informed decisions as to the right price and timing to buy or sell a property.

2. Realtors have an established network of contacts that can be invaluable during the process of buying or selling a property. They have access to other real estate agents, as well as lawyers, accountants and other industry professionals who can assist you at all stages of the process. This network of contacts can also be useful if you are looking for financing or need help finding contractors or movers.

3. Another advantage of working with a professional real estate agent is that they can handle all the documentation and paperwork that comes with buying or selling a property. This includes negotiating and drafting contracts, preparing closing documents, and making sure all deadlines are met. By working with an agent, you can rest assured that the entire process will be handled professionally and efficiently.

4. Finally, working with a professional real estate agent can save you time and effort. Searching for properties, arranging viewings and coordinating logistics can be a complicated and stressful process. A real estate agent can handle this entire process for you, allowing you to focus on other important things in your life.

In short, if you are looking to buy or sell a property, hiring a professional real estate agent can be an excellent decision. With their knowledge and experience, an established network of contacts, the ability to handle all the documentation and paperwork, and the ability to negotiate on your behalf, a real estate agent can make the entire process much easier and hassle-free.

¿Quién compra en Benahavís y Marbella?

El Colegio de Registradores ha publicado recientemente su informe anual para 2022 que ofrece, entre otros, información ampliada sobre las nacionalidades de los compradores extranjeros en España, más en detalle para cada una de las regiones y algunas provincias del territorio nacional. Hay algunos datos interesantes que serán comentados en este artículo.

Comprobando el gráfico 1 que muestra el número de ventas a extranjeros en la provincia de Málaga, se puede observar no solo que el año anterior fue el año con más ventas a extranjeros en Málaga, lo cual es comprensible ya que 2022 fue un año histórico en venta de viviendas en la mayoría de los municipios de la provincia, sino también que el porcentaje de venta a extranjeros aumentó del 27% al 33% lo que supone un notable + 6% recuperándose los porcentajes alcanzados de 2013 a 2016 y tras 5 años de descensos. Esto demuestra que un tercio de las viviendas cerradas en la Costa del Sol se venden a no nacionales confirmando el creciente interés por la zona que manifiestan los clientes procedentes del extranjero.

Por otro lado y en el gráfico 2, se pueden ver las nacionalidades de los compradores en Andalucía. Aunque los datos son para toda la comunidad andaluza, la mayoría de las ventas a extranjeros en la región se cierran en la Costa del Sol por lo que consideraremos estos datos relevantes para nuestra zona. El gráfico muestra que los británicos siguen siendo la nacionalidad que más operaciones inmobiliarias cierran pero con un cambio de tendencia extremadamente relevante. Por primera vez tras el Brexit, el número de compradores procedentes de Reino Unido ha aumentado un notable 27% en el porcentaje de ventas. Esperamos que este cambio se estabilice ya que los británicos siempre han sido los principales compradores en Marbella y, especialmente, en Benahavís.

En cuanto al número de ventas, las nacionalidades con más ventas cerradas son los británicos, suecos y holandeses que arrebataron el puesto a los belgas lo que supone un cambio respecto a los diez años anteriores, siendo esta última ha sido la tercera en el ranking. En general, la mayoría de las nacionalidades han aumentado sus porcentajes siendo holandeses y alemanes los que más han aumentado.

En resumen, las cifras están mostrando lo que hemos notado en los últimos dos años,  que es que cada vez más extranjeros deciden disfrutar del estilo de vida que ofrece la Costa del Sol.

Fuente: Colegio de Registradores.

Who is buying in Benahavis & Marbella?

The Land Registry Association has recently published his yearly report for 2022 that gives, among others, extended information on the nationalities of foreign buyers in Spain, more in detail for each of the regions of Spain and some provinces of Spain. There are some interesting data that will be commented in this article.

Checking Chart 1 that shows the number of sales to foreigners in the province of Malaga, it can be seen not only that 2022 was the year with more sales to foreigners in Malaga, which is understandable as 2022 was an historic record year in home sales in most of the municipalities of the province, but also that the percentage of sale to foreigners increased from 27% to 33% which is a remarkable +6% to recover the percentages achieved from 2013 to 2016 and after 5 years of declines.

This shows that one third of the properties closed in the Costa del Sol are sold to foreigners confirming the increasing interest in the area that clients from abroad are manifesting.

On the other hand and in Chart 2, it can be seen the nationalities of the foreigners buying in Andalucia. Although the data is for the whole Andalusian community, most of the sales to foreigners in the region are closed in the Costa del Sol so we will consider this data relevant for our area. The chart shows that British are still the nationality that closes more real estate transactions but with a extremely relevant change in the tendency. For the first year after the Brexit, the number of British buying have increased a remarkable almost 27% in the percentage of sales. We hope for the stabilization of this change as British have been always the main buyers in Marbella and, specially, Benahavis.

In terms of number of sales, the nationalities with more closed sales are British, as commented, Swedish and Dutch that took the place from Belgiums which is a change compared to the previous ten years where this latest has been the third in the ranking. In general, most of the nationalities have increased their percentages being Dutch and Germans the ones with the highest increase in percentage.

In summary, the numbers are showing what we have noticed in the last two years that is more foreigners deciding to enjoy the life style that the Costa del Sol offers.

Source: The Land Registry Association

9 Points to keep in mind when selling multimillion-dollar properties

The sale of a commercial property worth tens of millions of euros to an investor is, in general, similar to the sale of any other property, although it is not within the reach of many real estate agents. This level of transactions requires preparation, experience and mastery of a number of aspects that will be summarized in this article:

1. The parties involved in the transaction, buyer and seller, are individuals, entities, investors, high net worth individuals accustomed to corporate transactions and advised by specialists in each of   the  fields  that require  the  same, so the real estate agent has to be extremely professional in their participation, including treatment, appearance, professional language and knowledge.
2.  In transactions with investors, the emotions associated with the purchase and sale of a property do not come into play. In this case, we are talking about numbers, business, profitability, and, in order to close them, we must master them.
3.  In-depth technical, financial and legal knowledge are indispensable to be able to participate at the same level as the parties involved and their advisors in the meetings that are necessary to define and finalize all the details. Without this knowledge, the credibility of the parties in our work and in the numbers on which we support the sale is lost.
4. Based on that technical knowledge we have to carry out our own due diligence (technical and legal audit) to be sure, even before offering the product, that it is really saleable. We can completely lose the credibility and trust of a customer buyer at this level if we offer products that finally cannot be bought because we have not done our previous research work.
5.  Although it may seem obvious, it is essential to study and know each of the parties and, in great depth, the product we are selling. You must be excellently prepared before any call or meeting with the intervening parties or with any of their advisors. Things cannot be left to chance or improvisation, since not having the situation under control or saying something inopportune can cause the loss of an operation that takes a lot of time and effort to put together.
6. We have to be problem solvers. During the operations multiple and diverse problems will arise and we must attack them in a proactive way and not wait for them to solve themselves or for them to be solved for us.
7.  Mentality is very important when talking about this level of transactions. We have to show tranquility and confidence in what we are doing. We have to control the timing of the transaction in a professional manner and we cannot become desperate to close. The profession is carried inside because it is inevitable to think about the fees that can be generated, but we must control the anxiety so that it does not become visible at any time. The parties, in general, will not accept the pressure to close and each one will try to set its own time. Our work in this sense has a psychological and a diplomatic part.
8.  We are talking about numbers, costs and profitability and the operation will not go ahead if the two parties do not reach a mutual agreement in which both are winners (except in certain special cases), so we must enter the negotiating table knowing the numbers of each party and where the common objective that satisfies each one is. And, as mentioned before, always remain calm, which is necessary in any negotiation, but imperative in closings at this level.
9.  Discretion is fundamental, understanding it in a double sense, the first one in which we are talking about high level people or entities that, in general, prefer the anonymity of the operations and; the second one, in which an indiscretion can make that the operation reaches the knowledge of third parties that, with opposed interests, can anticipate or ruin the same one.
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After this enumeration it may seem obvious that any real estate agent can close a high level transaction and the only thing needed is to prepare for it, which is not difficult but it is hard and requires a lot of work and dedication, however, and in reality, there are not so many agents who are really trained. The numbers involved sound very attractive and this makes many agents try, waste a lot of time and end up getting frustrated because, as in everything, you can't try to run a marathon without having run a mile first.

The luxury market is skyrocketing in Benahavis and Marbella

Although the final 2022 luxury property sales data is not yet available, with last month's data still to be published, it shows that the luxury market has continued to rise in terms of units sold not only in Marbella but even more so in Benahavis. Considering luxury market those properties that are sold above one million euros, the sales numbers have been even higher than in 2021, already a record year continued its growth in the past 2022.

Taking into account first on the number of homes sold in Marbella, graph 1 shows that, for all the price ranges in which the data have been distributed, in 2022, and with some data still missing, have been more than a  50% increase in sales when compared to the whole year 2021, which was already a year in which were sold, practically, twice as many luxury properties than the average of the previous eight years. In the same way it can be seen that the percentage of high-end operations continues to rise having gone from 6.5% to practically 11% in just five years which, taking into account that, in 2022, 5.600 transactions in the municipality of Marbella means that about 250 more transactions were closed in this market than last year. If the number of home sales has increased in 2022 by 38% over the average sales from 2016 to 2019 and 21% over 2021, the number of sales in the high-end range, the increase has been 138% over the average sales from 2016 to 2019 and 27% (still lacking the sales of the last month of 2022) over 2021. The boom in the luxury real estate market is more than evident in Marbella.
In Benahavis, as can be seen in graph 2, the situation is similar but not exactly the same and variations change depending on the price range.

In the two lower ranges, from one million to four million euros, more operations are going to be closed than in 2021 although the percentage increase in the number of sales is not as large as in Marbella reaching a 13% increase, in the absence of some data, of the sales that were closed last year. What does change in Benahavis is the percentage of high level sales in the market, which goes from approximately 16% to 14%, showing that in the record year of sales in Benahavis the number of sales below one million euros increased more than those above that value, except for sales above four million euros. In the latter, and higherst price range, twice as many properties have been sold  than in the whole year 2021, so that in 2022 we will see a new sales record in this super luxury sector. Making the same comparison as in Marbella, the number of sales of luxury homes has risen by 270% in 2022 compared to the average sales of the years 2016 to 2019 and 19% compared to 2021.
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In short, the luxury housing market has soared in these last two years and I think it is going to be even more reinforced in the coming years if we take into account what is attracting clients in this segment to Marbella and Benahavis: the weather we enjoy, the quality of the product that is being offered and the infrastructure that has been put in place to facilitate working from here in companies located abroad, in general, a better quality of life not only for retirement but also for a lifestyle in accordance with the times in which we live.