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A buyers guide to new developments in Marbella

Marbella is one of the most sought-after destinations in Europe for luxury real estate and with good reason. Whether you're looking to purchase a second home, a holiday retreat, or a property to flip, Marbella's real estate market offers substantial opportunities for both capital growth and rental income. At Marbslifestyle.com, we’ve put together this detailed guide to help you understand the ins and outs of buying new developments in Marbella and why it’s one of the smartest decisions you can make as an investor.  

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Why invest in new developments in Marbella?

Investing in new developments in Marbella offers many benefits that make it an attractive option for international buyers and investors alike. Here are the key reasons why it makes sense to invest in a new development in this prestigious area:

1. High capital appreciation

Marbella’s property market has seen consistent growth in recent years. On average, property values in Marbella have risen by around 5-7% per year, with some prime areas like Puerto Banús, the Golden Mile and Nueva Andalucía experiencing even higher increases. For investors, this means that a property bought today could be worth significantly more in a few years, especially if you purchase off-plan and take advantage of a price rise during the construction phase.

2. Attractive ROI for investors

One of the biggest draws of new developments in Marbella is the potential for high return on investment (ROI). On average, rental yields in Marbella range from 10% + annually, with luxury properties achieving even higher rates. Additionally, as new developments tend to appreciate in value during the construction phase, investors can purchase properties at a set price and sell them at a higher value once completed. This offers a short-term investment opportunity without the hassle of long-term holding.

3.Sustainable and modern designs

New developments in Marbella are built to the highest standards, with modern designs that incorporate sustainable building practices, energy-efficient systems and cutting-edge technology. This includes smart homes with advanced features such as automated lighting, climate control and security systems. Properties are also often designed to blend seamlessly with Marbella’s beautiful surroundings, offering a modern yet elegant aesthetic.

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Key considerations when buying a new development in Marbella

Investing in a new development is a significant decision and it’s important to understand all the factors involved. Here are the key considerations to keep in mind:

1. Payment plans and financing options

For investors, one of the most attractive aspects of new developments in Marbella is the flexible payment plans offered by developers. Most developers provide off-plan payment plans, which allow you to secure the property with a deposit and pay in stages as the construction progresses. This can be incredibly beneficial for investors, as it allows you to pay only a fraction of the total cost upfront and defer the bulk of the payment until later in the process.

Why is this a good opportunity for investors?

  • Price Appreciation During Construction: As construction progresses, property values in Marbella tend to increase. This means that by the time your property is finished, it could be worth more than what you initially paid for it.
  • Selling Before Completion: If you purchase a property off-plan with a payment plan and decide not to hold onto it long-term, you can sell the property before or shortly after completion. Properties purchased off-plan have the potential to appreciate by up to 15-20% during the construction phase. With these property values rising during the construction period, you could sell the property at a significant profit without even needing to move in.
  • Leveraging Financing: Many buyers opt for financing through Spanish banks, which often offer competitive rates to foreign buyers. Developers often work with local banks to provide easy access to financing.

2. ROI potential in the Marbella market

Marbella has become one of the most lucrative markets for investors in Spain. The demand for both short-term holiday rentals and long-term investments in the city remains high. Here are a few facts to consider:

  • Annual Price Increase: Marbella properties have been experiencing an average annual price increase of 5-7%, with some prime locations seeing an increase of up to 10%+ in recent years.
  • High Rental Demand: Marbella's rental market is incredibly strong, particularly for luxury properties. Investors can expect to see strong rental income, with high-end villas and apartments attracting premium rents from international visitors year-round.
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3. Renting out your new development

For second homeowners and investors, renting out your new development can be a highly profitable option. Marbella is one of the most popular holiday destinations in Europe, attracting affluent tourists from all over the world. Luxury rentals, in particular, are in high demand and renting out your property when you’re not using it can provide a profitable stream of passive income.

Here’s why renting out your property in Marbella is a great investment strategy:

  • Strong Rental Market: There is constant demand for holiday homes, especially in prime locations near the beach, golf courses, or the Marbella Old Town. Luxury properties can command significant rental prices, especially during peak seasons. An interest of 10% + on your investment is possible if you choose your property wisely.
  • High Occupancy Rates: Depending on the location and the quality of the property, occupancy rates for short-term rentals in Marbella can reach 70-85%. This means your property could be rented out for the majority of the year, bringing in substantial income.
  • Property Appreciation: Beyond rental income, your property’s value will likely appreciate over time, particularly if you invest in a prime location. An annual price increase of 5 - 7% is seen in the past and in recent years even 10%. Marbella’s luxury real estate market continues to show strong growth, making rental properties an attractive option for investors looking for both income and capital gains.

Why You Should Contact Us When Interested in New Developments

  • Expertise in the Marbella Market: With years of experience in Marbella’s real estate market, we know the best locations for investment and the most reputable developers. We can guide you to developments with the highest ROI potential and provide you with accurate market insights.
  • Tailored Investment Advice: Whether you’re looking for a second home or a high-yield investment property, we will work with you to understand your needs and provide you with personalized recommendations.
  • Comprehensive Support: From helping you understand payment plans and financing options to ensuring all legal requirements are met, we offer a full-service approach to make your property purchase seamless and stress-free.
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Conclusion

Investing in a new development in Marbella is an excellent decision, whether you're looking to secure a luxurious second home or make a smart investment. With high capital appreciation, strong rental demand and flexible payment plans, Marbella’s real estate market offers exceptional opportunities for both investors and holiday homeowners.

If you’re ready to start your property journey in Marbella, don’t hesitate to contact our expert team at Marbslifestyle.com. We’ll help you find the perfect new development, provide you with the latest market insights and guide you through every step of the process. Let us help you make your Marbella investment a success. 

Are there any specific legal issues I should be aware of when buying a new property in Spain?

When buying a new property in Spain, it’s crucial to ensure the property has all necessary licenses and permissions, which include a building license and a first occupancy license. It’s also important to check that there are no outstanding debts or charges against the property, such as community fees or local taxes. Hiring a lawyer who specializes in Spanish property law is advisable to navigate these issues.

How can I ensure my property retains its value over time?

To ensure your property in Marbella retains its value, consider its location and community features, as these are crucial for long-term appreciation. Regular maintenance and updates are essential, especially in coastal areas where properties can degrade faster due to the salty air. Staying updated with local development plans and participating in community associations can also help protect your investment.

How long does the buying process typically take?

The buying process in Marbella can vary significantly based on various factors, such as mortgage approval and legal checks. Generally, once a buyer finds a property and agrees on the price, the process can take anywhere from a few weeks to several months. If everything is in order and no legal issues arise, completing the purchase can take approximately 3-4 months from the date of the initial agreement.

What are the hidden costs of buying a new development in Marbella?

When buying a new development in Marbella, several hidden costs can arise. Beyond the purchase price, buyers should budget for VAT (IVA) at 10% on new properties, Stamp Duty, which is around 1.5%, and legal fees, typically 1-2% of the purchase price. Additionally, there are notary fees and property registry fees, which usually range from 0.5% to 1% each. If you’re securing a mortgage, banks may charge an opening fee.

What should I look for in a real estate agent when buying in Marbella?

When choosing a real estate agent in Marbella, look for someone who has extensive knowledge of the local market, especially in new developments. The agent should be fluent in your language and Spanish, fully registered with a proven track record, and possess strong negotiating skills. Ensure they have a good reputation and can provide testimonials from previous clients. It’s also beneficial if they understand the legal and financial aspects of buying property in Spain.