Summer arrives, and the real estate market emerges.
It is normal for demand from clients looking for property to increase as summer approaches, but this season has exceeded our expectations due to the stimulus of lower taxes, reduced travel restrictions, and the advanced vaccination campaign.
According to Smadar Kahana, Managing Director of Engel & Völkers Marbella, the real estate market in Marbella is more active than ever, with client and investor interest focused on larger villas, contemporary new homes with plenty of outdoor space that also offer space for remote working and leisure activities.
These residences are approximately 700 square metres in size for an exclusive villa with an average price of 2 million euros, and approximately 120 square metres in size for luxury apartments with prices per square metre of approximately 5,000 euros.
Welcome back clients from all over the world!
This season coincides with the arrival of foreign clients who, in addition to enjoying the resort lifestyle that Marbella has to offer, are interested in investing in properties that will appreciate further and visiting the area for the first time, owing to the low incidence rate of COVID-19, the advanced vaccination schedule, and the end of most travel restrictions.
“With the relaxation of restrictions and the reactivation of international mobility, foreigners will return to Spain and invest in housing again,” according to the Instituto de Valoraciones. Foreign buyers accounted for 9.7 percent of transactions in Spain in the first quarter of the year, which is “a sign that foreign investors are still interested in the Spanish property market.” Swedish clients, for example, have more than doubled their interest in purchasing luxury homes in Marbella this year, according as per the real estate portal Idealista.
In line with the findings of the preceding study, Smadar Kahana observes that “Marbella’s real estate market is very cosmopolitan. This is reflected in our buyer profile: approximately 55% of Engel & Völkers’ clients in Marbella are from abroad, primarily from Germany, Scandinavia, the United Kingdom, France, and the Netherlands.”
Temperatures rise, taxes fall
The Andalusian Government approved a reduction in the land transfer tax and stamp duty that will be maintained until the end of this year.
The land transfer tax (ITP) will go from rates of 10 %, 9 % and 8 % to a single rate of 7 %, while the general tax for documented legal acts will be reduced from 1.5 % to 1.2 %.
That said, the reduced taxes applicable to transactions certified before a notary are stipulated as follows:
Land transfer tax: 7%
Stamp duty: 1.2%
If you are considering buying a property in Marbella this is the best time to do so and benefit from this temporary tax reduction until 31st December this year.
Kalinka Hermann | 30/Jun/2021