Sales of High End Properties in Marbella Defy Current Market Trends in Spain
Champneys, the largest destination health spa group in the UK, have defied the credit-crunch by reporting strong sales of properties at their exclusive Spa Resort in Marbella indicating that high-end properties are still in demand despite the current economic slow-down All but two of their million Euro penthouses at the Spa Resort in Marbella have been sold since March this year, outselling the less expensive apartments.
The popularity of the most exclusive properties on their first overseas luxury development is in-line with the current trend of the global super prime property sector that saw a rise in prices of 11% last year according to a report released by Knight Frank in April 2008. They are a niche of investors who are prepared to pay the top prices and are undeterred by whatever may be going on at the lower end of the market. Many high end purchasers are from countries which have triumphed due to the commodities boom and want to invest in second or holiday homes. In a recent report by The Independent newspaper, Knight Frank identifies a similar trend with London property stating that "residential properties valued at £10m or more increased in value, by 2.9 per cent in August alone".
Marbella remains one of the most sought after locations for the world´s super rich although due to town planning irregularities there is a shortage of quality new developments in the area. Tony Roberts, Sales Director of Champneys Marbella comments "Marbella is still desirable and despite economic issues, bricks and mortar is still good.” The added attraction of Champneys is that owners can submit their property to the rental pool for the months that they are not using it and gain a return on their investment. Taking an average occupancy rate of 65% of 323 days of the year; owners could expect excellent returns.
In addition, an increase in square metre prices this year makes such property all the more attractive to wealthy investors. In a recent article in the Diario Sur newspaper it was commented that “According to the latest figures, the square metre price has gone up by 1.65 per cent in Marbella during the last year. While most house prices are plunging as a result of the current economic crisis, Marbella has not yet been as badly affected by the situation in the rest of the province of Malaga and for that matter the rest of the country.”
The successful sales results for Champneys Marbella Spa Resort reflect the fact that the top end of the market is not as susceptible to market conditions as the mainstream and there is no sign of a decline in demand for these types of properties. William Claridge, a successful businessman from Bedford and avid fan of the Champneys Springs Resort spotted an opportunity to combine sunshine with his passion for spas and has bought in the Marbella resort. He comments “Even though the credit crunch is being heavily documented in the press, those that can afford it are less likely to feel the pinch. And despite the prices already rising in the Champneys development it is still affordable especially as it makes such a good investment.”
About Champneys Marbella Spa Resort: Set within the hills of Marbella’s National park this exclusive development boasts an idyllic location overlooking the coast line of Marbella and Puerto Banus. Apartments and penthouses are available in the exclusive luxury resort combining the Champneys spa lifestyle and stunning climate of the Mediterranean. Prices start from €696,358/ £552,492 for 2 bedroom apartments. There are just two 2 bedroom penthouses available at €971,729/ £770,966 and €1,026,705/ £814,622. Also available are 3 bedroom 3 bathroom vast duplex suites with private pool, two parking spaces and two store rooms at €1,700,000/ £1,348,836.