2016’s wealth report by Knight Frank allays many of the accusations that the past decade has been a period of sufferance for all – and most especially the property market. In fact, there has been an abundance of new ultra high net worth individuals (UHNWI) across the globe and much of this wealth has been allocated to real estate – whether primary residences or second homes.
Real Capital Solutions was glad to see Marbella featured in the enlightening report, taking the 35th spot on the PIRI listings. PIRI is an acronym for Prime International Real Estate Index and the world’s residential property market rose at an average rate of 1.8%. However, Marbella experienced an annual increase of 2.8%, beating New York, Moscow, Mallorca and Brussels, amongst others.
Of course, it is no surprise that the Mediterranean in general was one of Europe’s strongest region of growth. Whilst fears remain for the stability/ safety of countries such as Egypt and Turkey, the traditional Spanish hotspot of the Costa del Sol sees a significant increase in tourism arrivals in 2016. The hotels are filling up already and hopes are realistic for a sell-out summer!
Knight Frank’s Wealth Report also goes on to explain that investment within a country is not only due to its industries and tourism but also its “wealth accessibility”. Wealth accessibility is a measure of the ease of connections between itself and other high net worth locations. Many an investor or entrepreneur will include a number of second homes within easy access of their primary residence, and these destinations are where the investments into relaxation and indulgence are made. Marbella has the benefit of a major international airport situated at either side of the Costa del Sol that can transfer a visitor from the confines of the major European cities to the Spanish Coastline in approx. 2 hours. Plus there are direct train links from Málaga to Madrid and Barcelona. Marbella’s average of 320 days of sunshine (the best across most of Europe) often seals the deal when considering a weekend get-away or 2nd home.
These statistics comes as no surprise to Real Capital Solutions who, following similar analysis, realised that Marbella was a market ripe for investment. The Spanish head quarters were opened in 2013, and success came quickly with 50,000,000€ of property sales in just the first 24 months.
For more information on Real Capital Solutions’ projects portfolio, click here. The American equity firm continuously seeks real estate to acquire or develop. Please feel free to contact us for more information.