By Kevin Fraser Park •
Published: 03 Nov 2023 • 9:50
La Hacienda Alcaidesa Links Golf Resort
72 per cent of the Spanish homes of the ultra-rich are on the Costa del Sol. Of the 1,212 Branded Residences completed or under construction, 869 are planned in the province of Malaga.
The Spanish real estate market is witnessing, first hand, the rise of branded residences or branded homes. These homes sell for around 15% to 20% more than the average asking price for similar properties. The reason? “These units are meticulously designed and, in most cases, expertly managed by leading international hotel operators who specialise in the luxury segment,” explained real estate and financial advisors Colliers.
The exclusivity, the quality of the location and personalised services – similar to those of a 5 star hotel -everything revolves around luxury and exclusivity. And the main focus of this in Spain is Marbella.
The majority of branded residence developments, whether currently established or planned for the future, are predominantly located along the Costa del Sol, accounting for approximately 72 per cent of the overall total, according to a report published this October.
This region, renowned for its tourist appeal and favourable climate, is home to notable projects such as Epic Marbella by Fendi and Four Seasons Marbella Resort. A significant proportion, approximately two thirds of the total, is currently under construction, comprising projects such as Elie Saab Villas Marbella and La Hacienda Alcaidesa Links Golf Resort.
The Colliers report notes that last year saw a slowdown in “wealth creation” due to the “underperformance” of financial markets. But this blip in the economic boom is just that, a blip. Forecasts for the next few years suggest a boom period.
According to papers published by the Boston-based consulting group Credit Suisse, the number of ultra-high net worth individuals will grow by 5.3% over the next five years, ending the decline in total assets of ultra-high net worth individuals over the past year.
The broader segment of high net worth individuals, including those with assets in excess of $1 million, is also experiencing substantial growth. Over the past year, this group grew by 2.9% and is expected to grow by an “impressive” 57% over the next five years, reaching a global population of more than 109 million people.
In other words, the right conditions are in place for the branded home market to take off with a bang. The purchase of luxury homes increased by 45% compared to 2021, reaching more than 1,000 transactions of over €2 million.
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Kevin was born in Scotland and worked in marketing, running his own businesses in UK, Italy and, for the last 8 years, here in Spain. He moved to the Costa del Sol in 2016 working initially in real estate. He has a passion for literature and particularly the English language which is how he got into writing.
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