American investors acquire interest for buying properties in the Costa del Sol
The Costa del Sol is one of the most attractive in the world for tourists seeking beach, sun and luxury, all combined in one place. The current real estate market situation has prompted some foreign investment that are not so traditional in the region. In Marbella, most investors are Arabs, Asians or Europeans, however, the presence of Americans is growing increasingly, both individuals and companies investing in large tourist and real estate complex.
Since the boom of foreign investment Marbella lived in the 60`s years, Americans were key in Marbella acquired international projection, since besides the glamor of the stars who visited at that time such as Frank Sinatra and Liza Minelli, there were hippies and young travelers who ventured to reach these shores. In recent years we have seen that the visit of great icons of Hollywood like Brad Pitt and Angelina Jolie, or Paris Hilton is becoming more common in the Costa del Sol, so much so that George Clooney bought a villa near Sierra Blanca and to the very first lady of the United States Michelle Obama, also he visited this coast.
The exclusivity that has always characterized Marbella, next to the behavior of the real estate market has caused interest in the region again, and become one of the favorite destinations for Americans to invest and vacationing in Europe, leaving aside some of the favorite cities such as Rome, Paris, London or even Madrid. This way you can say that now Marbella here to stay and continue romancing American tourists.
In what invest Americans in Marbella?
The Costa del Sol is synonymous with luxury and elegance, in short, a cosmopolitan city. Therefore buyers who invest in this region looking for these types of properties and the price must correspond to the demands of the owners. In this way, private buyers looking for homes of this type and spare no expense to make their properties from the best, putting everything to your liking.
Most American investors allocate their capital in Marbella are from the U.S. The motivation of these, differs greatly from that of European or Arab, seeking retirement homes or holiday. US investors are largely investment funds that have been on the Costa del Sol a business opportunity, therefore, have been acquiring properties as real estate, commercial and luxury real estate, for example, before 2008 were valued at 1 million euros and today you can get for 800 thousand euros.
One example was a mansion bought by an American investor last year at a cost of 12.5 million euros, in one of the most exclusive residential areas of the city, La Zagaleta, located very close to one of the best areas of Marbella in Puerto Banus.
Similarly, major real estate conglomerates, have decided to invest in the Costa del Sol. One of the most important has been the company from Colorado, Real Capital Solutions (RCS) with over 30 years in real estate in the United States, and that plans to invest over 200 million euros both in Marbella and the rest of Andalusia until 2018. RCS has already acquired 2 developments in the Marbella coast at a cumulative cost of 15 million euros. Cosmo Beach and Valley Heights gather together more than a hundred houses, which were built prior to the housing crisis and who had been in the hands of banks.
The cost of property in Cosmo Beach are between 186,000 and 380,000 euros, while in Valley Heights, go between 269,000 and 464,000 euros.
American real estate investors emphasize the similarity between Miami and Marbella, and although the Costa del Sol has its own characteristics, climate and tourism in both regions are very similar. It should also be noted that both Miami and Marbella were the first to recover from the real estate crisis in the United States and Spain respectively.
These similarities also make work easier for architects and engineers, as the same designs used on the coast of Florida can be used in the Costa del Sol.
What Marbella offers to Americans?
Although Americans tend to enjoy the beach in places like Miami, California, the Bahamas or Jamaica, those traveling to Europe, do in order to find exclusive and rub elbows with the jet set. This is possible only in places like the Costa del Sol located on the shores of the Mediterranean.
With this degree of luxury it is natural that property prices are not cheap. The price per square meter in Marbella is one of the highest in Spain with an average of 3430 euros, while the average price of properties is 826,579 euros, the most economic zone Sabinillas with an average price of 136,900 euros, for the month of February 2016.
The price to be paid for a property in Marbella, makes it worthwhile when compendium of attractions that exist in the Costa del Sol. Playing sports in Marbella, is one of the main reasons to visit, especially selected sports like golf, karting, sailing, sport boats and any other sport you can develop at sea, are perfect to be practiced in Marbella.
In fact, the Costa del Golf, as is also known Marbella, boasts 21 golf courses and about another 40 in other municipalities belonging also to Andalusia, this makes it perfect to do business both in Spain and in Europe, and that is one of the preferred ways for Americans. Ports, exceed the ten, in those who are special for fishing and other sports activities.
- Mediterranean Best Beaches
Americans are fans going to the beach for sunbathing and activities and beach sports. Marbella has an impressive 23 beaches along 27 km of coastline are bathed by the Mediterranean Sea, it should be noted that in all there are 7 beaches with blue flags, an international standard to indicate the excellent water quality, services, and meeting a range of environmental conditions and facilities. Among the most outstanding beaches of Marbella they are:
– Bounty Beach: It is perfect for relaxing and also its location is very convenient as it is close to the city. Chill out music features, and prices of services are quite accessible.
– Nikki Beach: His name has become famous worldwide as synonymous with celebration and fun, and this tradition is still maintained today, with champagne and some of the best beach parties to which it can assist in Spain.
– Playa Nagüeles: Distinguished by its exclusivity and golden and clean sands, is located in the Golden Mile and is visited by the rich and famous, and there are the most expensive restaurants and clubs most important beach in Marbella, there you can you can also go cycling along the promenade and rent yachts for the day.
The nightlife of the city is famous worldwide 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. But keep in mind that Marbella is distinguished from the rest of Spain for its exclusivity, ie, it may seem uneconomical, but enjoy nightlife with which few cities in the world can be compared.
- Excellent opportunity in the real estate market
Prices of real estate in Spain, it is estimated that they will continue their upward trend during the course of 2016, such as happened in 2015 where the price increase ranged from 12% to 30% especially in the major cities such as Marbella, Madrid and Barcelona accentuating this trend in the most exclusive areas and higher costs. However, analysts are a bit more conservative with projections made for 2016 where an increase in prices from a range of 3 to 5% and may vary to areas of greater tourist and real estate activity in the Costa del is expected sun, ie Marbella where you can achieve an increase in the value of properties to 10%.
How much invest Americans in Marbella?
Marbella is so attractive for foreigners, that 85% of purchases of residential property that are made in the city are made by foreign, mainly from countries of the European Union. This behavior is justified because of the good economy that have shown most European countries and that coupled with the housing crisis that occurred since 2008 which reduced property prices, helped that impelled much more investment foreigners in a market that already was the most important in Spain.
Americans have not yet managed to occupy much of the real estate market in Marbella, and remain overshadowed by Europeans, Asians or Arabs. However, growth and interest of the Americans in the Costa del Sol is expected to increase further. We have seen that most Americans seek properties that invest in the region, aims houses large, spacious and luxurious, never skimp in terms of money is concerned. The same applies to Canadian buyers, although less, also seek these properties with all the amenities, whether homes, condos or townhouses that have gyms, swimming pools, places to have fun, etc.
What artists have visited the region?
The glamor that has accompanied Marbella since the 50`s is directly related to the stars and celebrities who used to visit her and many still continue to do so.
The city whose history as an international tourist destination is linked to the jet set and the glamorous era when Hollywood stars such as Deborah Kerr, Frank Sinatra and Liza Minnelli regularly visited this coast bathed by the sun.
After years of inactivity by American visitors, Hollywood stars the likes of Prince, Melanie Griffith and George Clooney have rekindled passion for Marbella, and its wake seems to have left also influences the large investments have been made in this region. US investors, having acquired several luxury housing complex in Marbella and surroundings, are looking to expand their participation in the area, with a budget of over 400 million dollars.
These have been joined by the famous Brad Pitt and Angelina Jolie couple, who spent several summers in the city as well as the Paris Hilton socialite, who followed the footsteps of his grandfather, not so much to create a hotel chain but enjoy Marbella, since Conrad Hilton in 1969 came personally to inaugurate a hotel belonging to his signature, although its establishment has been sold. Michelle Obama, though, is another of the personalities who have visited the Costa del Sol and also made touring the rest of Andalusia.
Purchases by Americans are not significant when compared with European, Arab or Chinese, however, it has shown great interest in urban complexes by large American real estate conglomerates, which will spend large amounts of money to contribute and participate in real estate. Individual purchases have also increased, mainly luxury homes, and with the contribution of famous visiting Marbella, is expected to draw the attention of more buyers to invest in the Costa del Sol.
Written by: CAPD
Contribution to the reader: Know and understand why the growth of American investment in the Marbella real estate, with large investment companies, and the visit of personalities to the coast.