In 2021, the luxury real estate segment (that is, properties worth more than a million euros) grew month after month until it reached an unprecedented level of activity. The luxury real estate market, instead of being negatively affected as most had expected, prospered, far exceeding all expectations. The increase in demand was a direct result of the coronavirus pandemic. Because the real estate market is so active, despite restrictions on mobility between European countries and even between Spanish municipalities, we can say that this wave of buying and selling is just beginning, and it is an extraordinary and positive market indicator that we will see in the coming months, as restrictions on mobility continue to loosen.
The trend toward increased investment in the upper and luxury segment of the real estate market is not a phenomenon unique to our area: individuals with high purchasing power are showing a clear tendency to direct their investments toward the real estate market worldwide.
Real estate is perceived globally as a “safe haven in these uncertain days and is undoubtedly much safer than stock market stocks or other investment alternatives. It is also a fundamental investment in quality of life that many people can afford today.” And Marbella is now one of the most attractive luxury tourist destinations in the world because of its climate, sports and golf facilities, and its infrastructure.
Marbella, traditionally a tourist city, registers an increase in the number of owners who want to spend more time in this area, one of the most important enclaves of the Costa del Sol, and decided to convert their second residence into their usual accommodation.
The document also summarizes other factors that lead to buying and selling, such as the tax cuts that the government of Andalusia has applied over the past two years. Noteworthy are the reduction of the property transfer tax (ITP) to 3% with a flat overall rate of 7% and the tax on documented legal acts (IAJD) from 1.5% to 1.2% as an interim measure until the end of 2021. To add to this, the inheritance and endowment tax was already virtually eliminated in April 2019. All this makes Andalusia one of the most financially favorable regions of Spain.
The high demand has caused a boom in luxury housing construction. Never before has Marbella known such a wide range and selection of high-quality properties available on the market. There are countless high-quality homes under construction and others awaiting the appropriate license to begin work.