If you’re considering renting a property in Marbella in 2023, you’ll be happy to know that the occupancy rates for rental properties in this sought-after destination are expected to remain high.
Marbella is a popular tourist destination known for its beautiful beaches, luxury villas, and vibrant nightlife. With its warm Mediterranean climate and diverse cultural offerings, it’s no surprise that Marbella attracts visitors from around the world. One reason for the popularity of the city is its status as one of the Mediterranean’s premier international destinations. This global interest helps safeguard the area’s value against cyclical fluctuations due to changes in interest rates and other factors.
In recent years, Marbella has seen a steady increase in tourism, with record-breaking numbers of visitors in 2019. The COVID-19 pandemic has accelerated a global change in lifestyle habits, which emphasizes outdoor residential spaces, maximizing leisure time, and remote work. The demand for properties in Marbella has also been bolstered by a surge in international high-tech sector jobs, especially in nearby Malaga. The combination of these factors has created a stable real estate market in Marbella, without the excesses of past decades.
Data shows that the Spanish real estate market, particularly in regions near the sea, is growing the most and most suitable for the new digital remote-working economy. In Andalucía, home to Marbella and the Costa del Sol, prices rose by 8.9% in 2022, while the Idealista tracker data from February 2023 showed that this trend continued. Marbella has seen an average price rise of 20% compared to February 2022, which is one of the largest in the country.
According to industry experts, Marbella’s rental occupancy rates are expected to remain strong in 2023, with high demand for both short-term and long-term rentals. This means that rental properties in Marbella will likely continue to be a smart investment for property owners and a popular choice for travellers.
Marbella’s top-end areas, such as the Golden Mile and Sierra Blanca, have seen an annual increase of 25% in February, while the Zagaleta and Quinta areas have seen even bigger increases of 32%, according to the Idealista tracker data. Quieter areas like San Pedro and Elvira/Cabopino have experienced year-on-year price rises of 16% and 10%, respectively, which is much closer to global inflation overall. Buyers are also being attracted to the lower square-metre prices in areas away from crowded urban centres, giving them more space and low-density developments surrounded by nature.
Despite the rising prices, there is confidence that the real estate sector is avoiding the excesses of previous cycles. While there is a natural demand to buy on the Costa in a premium location driven by historic changes in remote working and lifestyle, the most significant factor pointing to controlled growth is that the price of property in Spain is still significantly below its 2008 peak. Additionally, the number of real estate transactions in the area is similar to 15 years ago, but far fewer mortgages are being taken out. As a result, a significant proportion of properties are being bought with cash, which keeps mortgage debt in the market overall at sensible levels.
If you’re interested in renting a property in Marbella in 2023, it’s never too early to start planning. With high demand and limited availability, it’s important to start your search early and work with a reputable real estate agency to secure the perfect rental property for your needs.