If you’re considering renting a property in Marbella in 2023, you’ll be happy to know that 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 its diverse cultural offer, it is not surprising that Marbella attracts visitors from all over the world. One reason for the city’s popularity is its status as one of the leading international destinations in the Mediterranean. 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 experienced a steady increase in tourism, with record visitor numbers in 2019. The COVID-19 pandemic has accelerated a global change in living habits, which emphasizes outdoor residential spaces, maximizing the leisure time and remote work. . Demand for property in Marbella has also been boosted by an increase in international jobs in the high-tech sector, especially in nearby Malaga. The combination of these factors has created a stable real estate market in Marbella, without the excesses of past decades.
The data shows that the Spanish real estate market, especially in regions close to the sea, is the fastest growing and most suitable for the new digital economy of remote work. In Andalusia, where Marbella and the Costa del Sol meet, prices rose by 8.9% in 2022, while Idealista tracker data for February 2023 showed this trend continuing. Marbella has experienced an average price increase of 20% compared to February 2022, which is one of the highest in the country.
According to industry experts, rental occupancy rates in Marbella are expected to remain strong in 2023, with high demand for both short and long-term rentals. This means that rental properties in Marbella will likely continue to be a smart investment for owners and a popular choice for travelers.
The most exclusive areas of Marbella, such as golden mile and Sierra Blanca, have experienced an annual increase of 25% in February, while the areas of Zagaleta and Quinta have seen even higher increases of 32%, according to data from the Idealista tracker. Quieter areas like San Pedro and Elvira/Cabopino have seen year-on-year price increases of 16% and 10%, respectively, which is much closer to overall global inflation. Buyers are also attracted by lower prices per square meter in areas away from crowded urban centers, giving them more space and low-density developments surrounded by nature.
Despite the rise in 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 Coast in a prime location driven by historic shifts in remote work and lifestyle, the most significant factor pointing to controlled growth is that property prices in Spain are still significantly below its 2008 peak. Also, 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 purchased with cash, keeping mortgage debt in the broader market at reasonable levels.
If you are interested in renting a property in Marbella in 2023, it is never too early to start planning. With high demand and limited availability, it’s important to start your search early and work with a trusted real estate agency to secure the perfect rental property for your needs.