2021 has been the year of challenges where we have all demonstrated our ability to overcome the crisis and that is why thanks to our 5 offices in the most exclusive areas of Marbella, our international network and an excellent marketing strategy we have sold more than one property for day of the year, reaching a record number of luxury property sales.
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Seizing opportunities and expanding
At the beginning of 2021 we said that in order to define our strategy it was important to look at where we were coming from and now applying the same method to real estate activity we can see that it is currently at its highest level in 13 years according to figures provided by the Association of Registrars.
According to the Real Estate Registry Activity Index (IRAI) compiled by the Association of Registrars, whose objective is to analyse the evolution of the sector both from the demand side (transactions and mortgages) and from the supply side (commercial real estate activity), in the second quarter of this year activity soared by 20.9% year-on-year to 117.8 points, the highest level since the beginning of 2008.
The latest official data suggest that the upward trend could continue. In fact, home sales and mortgages recorded the best figures recorded in July since 2007. In absolute terms, both monthly statistics remain at their highest levels since 2012, according to the study by the Association of Registrars.
We must also add, what we could also read as an increase in the attraction of potential customers for the purchase of a second home, that the province of Malaga, according to the National Institute of Statistics, was the preferred destination for domestic tourism this summer, ranking above Alicante, Cadiz and the Balearic Islands. Spanish residents have flocked to the Costa del Sol to spend their vacations this summer. National tourism has led Malaga to be the first province of Spain in Spanish residents’ reservations in hotels during the months of June, July and August. They represent 3,192,740 overnight stays of the nearly 5.2 million stays with which the hotels on the coast have closed the high season period.
At Engel & Völkers Marbella we have been able to capitalise on this real estate boom from the very beginning by acquiring numerous luxury properties, the best exclusive listings in the Marbella market, as well as new real estate developments that have resulted in successful sales.
Another very relevant data is to be noted in new property transactions. For yet another month they have increased. Specifically, in July 2021 there were 9,510 new home sales and purchases, which represents a year-on-year increase of 40.2% compared to 2020.
And if, in addition to the net amount of sold homes we talk about their asking prices, a very positive fact is that the price of properties in Marbella has had a steady increase, allowing that owners who did not feel very confident about selling their property now think that it is the best time and in the other hand those who are looking for a home right now, accelerate the decision making. In the same way, for the investor client it is the best moment to acquire a property to renovate since he can be sure that once the construction is finished his investment will be revalued.
Another important point that can be made to understand the reason for this success in sales is the huge interest from high-end clients from abroad. Marbella currently ranks second in the ranking of investment destinations for this group of clients with 16% of all high-end searches coming from abroad, led by the UK and Sweden with 12% respectively, Germany in third place with 9%, then the Netherlands with 8% and the United States with 7%.
We took advantage of this immense boost in the real estate market to expand by opening our 5th shop located in the Guadalmina area and focusing on the western part of Marbella which encompasses private communities such as Guadalmina Alta, Guadalmina Baja, Los Flamingos, La Alqueria, Los Arqueros, among others.
This expansion then meant that Engel & Völkers Marbella stood out in the ranking of the best E&V offices in Spain and Andorra, positioning our 5 shops within the top 10, giving us greater exposure and capacity to attract international and national clients.
With this expansion we have conquered the real estate market in Marbella by having more than 50 agents specialised in each of the micro-areas of this city who have successfully achieved a large number of exclusive properties creating a unique portfolio in the market. These same agents have been able to play as a team, supporting each other between our offices to attract interested clients and in turn have managed to make the most of Engel & Völkers’ international network around the world.
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Adapting to new technologies and formats
The COVID-19 crisis forced us to accelerate our conversion to the digital world, allowing us to quickly adapt to new technologies and tools to offer a luxury service to our clients, who have undoubtedly welcomed the opportunity to have better access to information and the digitalisation of the viewings and negotiation processes.
In this way we have seen a change in the consumption habits of customers looking to invest in real estate who focus on online channels. In order to get closer to these clients we have invested time and capital in the continuous updating and improvement of our new website, our presence in search engines and the constant updating of content in the most recognised and exclusive portals in the market.
We have also improved our digital tools such as virtual tours using 3D-Matterport technology which has enabled our clients to continue to experience the luxury of visiting our properties from the comfort of their own homes even in the strictest moments of confinement; we have maintained direct communication with owners through our unique Owners App, allowing them to be kept up to date in real-time on the actions taken to successfully sell their property; and last but not least, we are in the active and constant search for new digital media that will allow us to remain at the top of technology focused on exclusive and luxury service for all our clients.
Observing the strong trend of progress in digital formats we quickly noticed a growth in the interest of potential clients in, in addition to high quality photos of properties, entertaining and interesting videos that make them glimpse what it would be like to live the home of their dreams. Therefore, we have put a lot of effort in the production of videos that have generated significant growth of our Youtube channel and in turn has improved our positioning within the most important real estate portals of today.
We have also opened the door to the opportunity to collaborate with social media influencers from different cities around the world with whom we have worked for the lifestyle campaigns that we are currently publishing on our Instagram and Facebook accounts. With this collaboration strategy we have managed to increase the reach of our publications and in turn the interest in our product: Marbella’s most exclusive properties.
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We do not forget the traditional media
Although the world has moved into the digital age, traditional media are still an important source of information to which a large number of potential customers flock. That is why this year we have once again printed our long awaited property catalogue “Private Residences”. An edition with more than 25,000 copies distributed at strategic points in Marbella that includes in each of its pages our most exclusive listings of penthouses and apartments as well as villas and townhouses in the best private communities in Marbella. And the most special thing about this edition is that it invites users to go beyond the pages by offering them the possibility of scanning a specific QR for each property and thus obtain more information of interest, direct contact with our agents and audio-visual material.
It is important that in a city like Marbella you also have commercial partners with impeccable reputations with whom you can collaborate. This is the case with the most important local magazines such as Exclusive Life and Essential Magazines, with whom we work with every edition to present the most interesting properties of the moment in the Marbella market. This means that our brand is present monthly in 20,000 copies of Essential distributed from Marbella to Mijas and in 5,000 copies of Exclusive Life Magazine every three months in the most exclusive luxury points of Marbella.
And speaking of magazines we must also highlight the publications of our incredible exclusive properties in the specialised real estate magazine GG Magazine edited by our Head Quarters who distributes more than 250,000 copies in major cities around the world
On the other hand, the presence in the national and international press is also a remarkable point, since thanks to our name recognized worldwide this year we have achieved numerous interviews both for local media such as Diario Sur or Marbella TV where we presented our exclusive project La Fuente, and for national newspapers such as the Expasión who considers us a source of information on the Costa del Sol in terms of the real estate market and this year, Due to the excellent results we have obtained, the Dutch TV channel RTL 4 was interested in doing an interview with our Managing Director Smadar Kahana which was broadcasted in the programme Woon Inspiraties where we were able to share some secrets of our success and show the wonders of Marbella.
All these actions have added up to our successful 2021 where we reported in the first half of the year an increase of 187% in the volume of transactions and revenue compared to the previous year and we can already foresee that at the end of this year this percentage will be even more positive for our brand. You can read our report here.
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When one achieves the proposed goals the next challenge is to maintain the success by raising the quality and service we have with clients, owners and the public. At Engel & Völkers Marbella we work every day with passion for what we do, with responsibility and sincerity towards each of the groups involved in the process of purchasing a property, and above all, with the strong conviction that our luxury product is unique.
Under the above premise, we have also launched the publication of our properties in the international portal of Engel & Völkers “Private Office” aimed at the highest standing market that seeks properties of the highest value in the market and works under a totally discreet purchase process.
The world changes and only those who are able to adapt quickly manage to keep up, which is why at Engel & Völkers Marbella we are committed to constant market research and the business possibilities that a city as dynamic as Marbella has to offer.
New projects are already cooking from the main office of Engel & Völkers Marbella and we are sure that it will mean a radically positive change for the Marbella real estate market, we hope to be able to share this news with you very soon.