Agnes Marciniak-Kostrzewa

Today’s Marbella, at least at first glance, is all about luxury hotels, high-end restaurants, brand-name boutiques, expensive yachts and big names among those who have acquired property here. But glamour has not always accompanied it. Marbella’s transformation from a small village devastated by the Spanish Civil War and the Second World War began around 1943 with the arrival of aristocrat Ricardo Soriano, Marquis of Ivanrey, who built Marbella’s first hotel, The Albergues del Rodeo, on a 22-hectare property he had purchased. The first guests were recruited from among the Marquis’s friends and acquaintances, and it was they who would launch the place’s elite clientele. Among the newcomers were also the Marquis’ nephew, Prince Alfonso de Hohenlohe, and another promoter of the region, the Madrid-based property developer Don Josê Banús. The former, having fallen in love with the place, also acquired the land in order to build on it the famous Marbella Club Hotel, which still exists today and was to be visited in the future by such notables as the Onassis family, Maria Callas, the Duke and Duchess of Windsor, Prince Rainer of Monaco and his wife Grace Kelly, Cary Grant and Ava Gardner. And the other was about to embark on the design and construction of the largest leisure complex to date in the country. It was a huge macro project that was called ‘Puerto Banus’ and included several hotels, golf courses, clubs and a yacht harbour, incidentally one of the most expensive in the world today. This is how, under the guise of Marbella, the elite face of the Costa del Sol was being built.

There are several theories as to the origin of the name Marbella. One of them, propounded by the city authorities themselves, suggests that it dates back to pre-Roman times and is a combination of the words Maar (a lot of water) and Billa (mountain). This is a beautiful metaphor for the place, which is flanked on one side by the 1,216-metre-high La Concha mountain and on the other by the waters of the Mediterranean. What does this mean for the lucky property owner in Marbella? The opportunity to spend time not only on one of the city’s beaches, but also to go trekking in the mountains. As for the former, Marbella offers visitors a beautiful coastline of 26 kilometres with sunny, mostly sandy beaches and excellent infrastructure. On each of them you can enjoy all kinds of water sports such as speedboat rides, paddle surfing, windsurfing or diving. And if you’re a mountain man, once you’ve conquered (alone or with a guide) La Concha, you’re in for a treat with the most beautiful view of the city skyline. Marbella is also a great base for visiting the region’s charming towns such as Estepona, Fuengirola, Torremolinos, Mijas, Villanueva del Rosario, Villanueva de la Concepción, Jerez de la Frontera and Benalmádena. These beautiful destinations await tourists and property owners in Marbella just an hour or so away.

Marbella has 2 faces. The fun and frenetic one, which attracts thrill-seeking tourists from all over the globe in the summer, and the one breathing centuries of diverse history left behind by the Romans and Moors, capable of delighting culture and art lovers. So, during the day, you can tap your fingers to the rhythm in one of the beautiful beach clubs to then experience the famous nightlife that goes on in Marbella until dawn. And when you feel the need to contemplate and sink into the immortal beauty of the culture, you can head to one of the most beautiful old towns on the Costa del Sol “Casco Antiguo”. This place will delight you with its wealth of history with narrow cobbled streets, Arab fortress walls, Christian churches, museums, squares surrounded by fragrant orange trees and bougainvillea flowers entwining the houses. And when you feel you need to rub shoulders (literally) with great art closer to the present day, you can take a stroll to the Avenida del Mar square and feast your eyes on the Salvadore Dali sculptures standing there just like that. Promenades and green parks and a whole host of other romantic corners also await property owners in Marbella!

Potential property owners in Marbella are attracted not only by the weather, the cuisine or the leisure activities, but also by the aura of prestige that has been building up around this town since the 1950s. Visible to the naked eye, luxury manifests itself in Marbella in the form of the aforementioned exclusive hotels, restaurants, boutiques of luxury brands or expensive cars cruising the streets of the city. Among the factors that unquestionably maintain Marbella’s reputation as an elite resort are, in our opinion: the big names associated with Marbella, the construction and development of the Puerto Banús yacht port and golf. But one step at a time:

Marbella, mecca of the famous, the liked and the rich

There is no doubt that the big names from the worlds of music, film, sport or politics choosing Marbella as a holiday destination or their second home is a factor that captures the imagination. Julio Iglesias, Brigitte Bardot, Audrey Hepburn, Sean Connery and many others have spent holidays here. Novak Đjoković lives here, and George Clooney, Antonio Banderas and even… the King of Saudi Arabia have also invested in property in Marbella. The latter’s impressive property is being compared to the US White House. You will also hear big names in the context of the ultra-luxurious resort of La Zagaleta, located 20 km from Marbella, with the most expensive prices in the whole of Spain. Celebrities such as Hugh Grant, Vladimir Putin and Rod Stewart own properties there, and Cristiano Ronaldo recently took his family on holiday there paying €40,000/month for the rental of a property.

A true synonym for Marbella’s luxury is Puerto Banús, a complex that resembles a small town. Big money can be seen at every turn here. Originally a small fishing village, today it is home to the largest concentration of yachts, sports cars and exclusive boutiques in all of Spain (!). The heart of Puerto Banús is the harbour, where yachts, catamarans and boats worth millions are stationed at over 900 berths. It is one of the most expensive harbours in the world, with a price per day of a bagatelle €2,000. Created in 1970 by the aforementioned Madrid developer José Banús, it remains one of the largest marinas in the Mediterranean today. More than 1 700 guests attended its opening, including Roman Polanski, Playboy owner Hugh Heffner, Prince Rainier and Princess Grace of Monaco. The star of the evening was the then 27-year-old Julio Iglesias. In addition to the harbour, Puerto Banús boasts: a never-ending nightlife, the Blue Flag award-winning Nueva Andalucia beach, which stretches for about a kilometre, and its own Avenue of the Stars. Since 2004. Puerto Banús also has its own Salvador Dali. On one of the roundabouts here you will find a sculpture of a rhinoceros dressed in lace, made by the artist, weighing 3 tonnes. It is also one of the places towards which the eyes of investors looking for those most luxurious properties in Marbella turn.

The aura of prestige that surrounds Marbella is not without its impact on property prices. While the average purchase price of a property in the entire province of Malaga according to the Idealista portal in Q2 2022 was €2,631/m², the average price of a property in Marbella is €3,898/m² (indomio.es/ VI.22). This is, of course, dependent on the neighbourhood. If you are interested in a lower budget flat in Marbella, outside the city centre, property prices can start from €2,000/m² (numbeo.com/ VIII.22). In addition to the cost of the property itself, you still need to factor in a budget for taxes and other operating charges. Experts suggest adding 10-15% to the price of the property. What does this amount include? First and foremost, the taxes mentioned. For a property bought from the secondary market, the transfer tax (ITP) in Andalusia was reduced in April ’21 to 7% regardless of the value of the transaction (this tax rate is valid for the moment until the end of ’22, so we recommend monitoring the situation). For a property purchased from the primary market, VAT of 10% (instead of ITP.) must be paid.

Marbella is said to be, with its combination of culture, beaches, cuisine, inhabitants, as close to paradise on earth as you can get. In turn, what makes it a good place to invest in property? Let’s summarise.

1. According to the prestigious Knight Frank agency, the real estate market in Marbella is one of the fastest growing and most sought-after luxury destinations in Europe. The market abounds with a large selection of properties, including luxury properties, which are me susceptible to fluctuations in times of crisis and their prices show a constant upward trend. Another argument in favour is the current transfer tax for property bought from the secondary market (ITP), which has been reduced to 7%. The development of the property market on the Costa del Sol and the Spanish property market itself is also not without influence.
2. Marbella has a high percentage of foreigners living there. Official figures show 33% of expats have chosen the city as an investment or their second home. What attracts foreign investors to real estate in Marbella are: the convenient international connections, the moderate, health-friendly climate and the longer tourist season (which affects profitability), the picturesque terrain with access to both the sea and the mountains, the proximity to amazing architecture, as well as its prestige and reputation.
3. According to data from the Idealista portal report (Q4 21), the province of Málaga (next to the region of Madrid) has the highest percentage of flats for rent in the whole of Spain. It is also the region with the second highest (after the province of Alicante) percentage of rental enquiries from foreigners. Marbella is a popular city for tourists. By deciding to buy a property in Marbella and then (the most profitable) holiday rental, you can earn a satisfactory income in just a few weeks. Andalusia has the highest rental prices in Spain, of which Marbella is in second place with a price of €2,130 / month (rightcasa.com).

By investing in property in Marbella you are also protecting your capital against galloping inflation.