Kings, princes and businessmen investing in the Costa del Sol
Today when you think of the Arab countries, the first thing you think is in luxury cars ,last model gold plated, 7 star hotels, artificial islands, and all the extravagances that oil money can buy. But something in particular, many sheiks, princes and wealthy people of the Arab world also invest in Marbella occurs. The reason is that Marbella has all this luxury to which they are accustomed, without so many excesses, and with the comfort and freedom of being in Western Europe with a mild climate and bathed in the waters of the beaches are for many the best in the world in the Mediterranean Sea.
This makes the Arab investment is tradition in Marbella since the 60`s and that many of the most famous and wealthy property belonging to citizens of these countries. The main stakeholders in properties both in Marbella in Spain, are tourists and investors coming from the Arab States (USA) Emirates which have been favored by the relief granted by the European Union to the citizens of this country who It allows freely throughout European territory without a visa, which was made in order to increase tourism in the region, and promote increased investment, particularly in terms of real estate.
This measure allows the Arabs pass through Europe without any legal requirement, provided that their stay is less than 90 days and 180 days can return to any European country they wish. The Arabs, who have always been attracted to Spain, now enjoy more, and can make their trips more frequently either leisure or business Spanish territory.
What has made Marbella tradition for Arabs?
It is well known that Marbella has been the preferred destination of Europeans, and Arabs have been here too long. However, at present, are the Arabs who have been pushing more in the Marbella real estate market, not by the amount of property they buy, but for luxury and size of these.
Marbella has the best weather on the Mediterranean coast with over 300 days of sunshine during the year and an average temperature of 19 ° C, with mild winters and low rainfall during this season, while summers are sufficiently warm without being suffocating for tourists, and of course for the Arabs is a relief, because in their countries are reached to 40 ° C at any time of the year for being almost entirely deserted.
- Luxury homes, shops and nightclubs
Arab investors buy properties in the most elite and most luxurious of the Costa del Sol residences, among them are La Zagaleta, Sierra Blanca, Marbella Club and Puerto Banus, and of course, are those best placed and that they have better views.
Puerto Banus is around all the shops of major fashion brands in the world are here as Gucci, Dior, Dolce & Gabbana, Louis Vuitton, Bulgari, just to mention a few. The same applies to restaurants and nightclubs that are decorated with frequent visits of artists and TV characters. Most of the premises are located in the Ribera street where clubs like Pangea, Tibu, Cavalli, Seven, are among others, that make famous to this port.
The nightlife of the city is also another highlight, that makes it famous around the world and probably one of the best in Spain for fun, competing only with Ibiza in that regard. The variety on offer to enjoy the night in bars, pubs, discos and beach clubs, which can find in different parts of the city both in the center and on the seafront. Two of the best known discos are Funky Buddha and Olivia Valere, and as well as other clubs have also assured fun, but keep in mind that Marbella is distinguished from the rest of Spain for its exclusivity, ie, it may seem uneconomical, but you enjoy nightlife with which few cities in the world can be compared.
Economic factors that drive Arab investment in Marbella
- Arab investors were not affected by the global economic crisis, the oil in their countries continued to produce and therefore their fortunes remained almost intact. This makes it possible to acquire property where the square meter reaches 10,000 euros, and properties worth millions reach, we must also add that Arab investors spare no expense in terms of decoration and equipment owned means. On many occasions they have come to spend up to 80 thousand euros for just a lamp.
- Many people may think of why the Arabs do not invest in other cities more luxurious like Monaco, where the price per square meter reaches between 30,000 and 40,000 euros, and the main reason is that the type of properties that are available in Marbella is not the same as getting in Monaco. The Costa del Sol is perfectly suited to the demands of the Arabs, as they seek to farms and villas with pools and all the luxury possible.
Arab kings and princes in Marbella
An assiduous visit to the city of Marbella, was the King Fahd and now followed by his brother Salman of Saudi Arabia. Both with a house each and every time they visited the city was synonymous with extravagance and flaunt everywhere. In a visit of King Fahd, they were made available to more than 300 rooms, 100 limousines, yachts 2, 7 airplanes, and 122 grants to make your caravan to his home in the Golden Mile.
Prince Salman with his son Sultan still frequenting the city to visit his home in the Al Riyadh Batatal. Other members of royal families Arab from Kuwait, UAE and Qatar also visit Marbella, as well as the president of Congo.
Impact of Arab tourism in Marbella
Wealthy Arab citizens also continually visit the Costa del Sol, especially after last Muslim holiday of Ramadan. These investors hold between 35 and 50 years, who come to enjoy all that Marbella offers. On average account for 7% of tourism in the city for the end of summer. Sports specially selected sports such as golf, karting, sailing, sport boats and any other sport you can develop at sea, they are perfect to be practiced in Marbella and are sought by the Arabs. In fact, the Costa del Golf, as is also known Marbella, boasts 21 golf courses and about another 40 in other municipalities also belonging to Andalusia. Ports, exceed the ten, in those who are special for fishing and other sports activities.
Arab hotel investments are also in Marbella
Large investments in the hotel business also had Arab investment. Such is the case of the hotel 5 stars Don Miguel that was purchased in 2012.
One of the largest hotels that can be found in the Costa del Sol, this hotel is located on a plot of over 70,000 square meters, five minutes from the center of Marbella, on foot of the mountain and on the side of La Concha, surrounded by subtropical gardens and large pools. It has 502 rooms and 28 meeting rooms, some of them with the greater capacity there on the Costa del Sol, the idea of this acquisition
The benefits are Arab citizens in Europe
- Free transit through Europe
One factor in favor of Arab investors especially those coming from the United Arab Emirates (EUA) have freedom of transit through Spain and across Europe with just your passport.
- Facilities airport to reach Spain
Since early last year, offering direct flights from Dubai to Barcelona and Madrid, which makes it easier and faster trips enthusiasts Arab citizens Spanish territory. Similarly, Spain has excellent road facilities, railway, and airport communication between all cities, and also the Arabs will have legal limitations, since they can travel without a visa throughout the European territory.
Why must continue to invest in Spain?
While public investment from Gulf countries is significant, it can continue to grow thanks to the following:
- Tourism will continue to grow in Spain
Spain historically has been a tourist destination, with a flow of tourists hovering between 60 and 65 million people a year. For this reason, Arab investors have taken to invest in large hotel chains and hotels tradicón in the country as the Renaissance Marriott in Barcelona, Intercontinental in Madrid, and the aforementioned Don Miguel in Marbella. And with that over a billion is exceeded in hotel investment in Spain.
- The property prices remain low
After the purchase of real estate reached record highs in 2007, in 2008 it bottomed with the economic crisis, which led to a fall in prices of 30 to 40%, in some extreme cases even 50%. These low prices changed the trend from 2014 when the most important cities such as Madrid, Barcelona and Marbella began their recovery. Therefore, the Arab real estate investors have seen their great opportunity in this market, which have focused on the purchase of residential, office and commercial buildings in order to diversify their investments into other industries. To this must be added the strength that has the Dirham against the euro and the dollar that makes it much easier transaction. While traditional investment locations in the Middle East, like London or Paris are suffering from the high prices that limit the ability to enter these markets, Spain offers lower barriers to entry for investors seeking investment opportunities.
- Strength of the Spanish economy
The International Monetary Fund has made positive estimates of the economic recovery in Spain, and this has encouraged investors to increase their contribution rate and amount of capital to the Spanish economy. Since 2014 it has had a total of 7 billion euros in purchases the property market not related to residential properties, the latter type have reached 6 billion euros, where foreign owners clearly dominate and highlight the Arabs.
- Good profitability in the future
While it is true that the prices in Spain have already begun to grow, compared to other European countries like France and England where and prices are high and there is little profit that can be generated by buying real estate in those places why Spain represents a promise of big profits in the real estate market in both the short and long term.
- Following the global trend
They have big household names worldwide for its wealth, decided to invest in Spain, including large financial institutions such as Goldman Sachs, who have made significant contributions to the Spanish economy. Of course, the Arabs did not want to fall behind and also want their share of the market, so leading companies in the Middle East as the National Bank of Abu Dhabi, the Arab Bank Kingdom, IPIC (International Petroleum Investment Company of Abu Dhabi) Emirates and Qatar Airways are already looking where introduced into the Spanish market, which may be beyond real estate. This creates a tendency of investments that encourages other companies lower capital and private citizens to engage in business in Spain.
Buying real estate in Marbella by Arabs has already become a tradition, it is even possible to say that, where a citizen of any of these nationalities to acquire a property here, provides status for luxury and exclusive to Costa of the sun.
The fact is that the extravagances of the Arabs combine perfectly with what is achieved in Marbella, and it is estimated that this union will continue to maintain and becomes stronger due to the current market conditions that attract more buyers.
Written by: CAPD
Contribution to the reader: Explain that the tradition of Arab investment in Marbella, with its iconic, besides showing the reasons why buyers continue investing.