News this month from the Malaga Developer’s Association reveals that the Russians have overtaken the Germans to become the second largest international home buying audience on the Costa del Sol. Marbella agent Spanish Hot Properties believes this is a trend to continue.
Nick Stuart, Director of Spanish Hot Properties, says, “Russians now make up 9% of foreign property purchases leaving the Germans trailing with 7%. This is still minimal in comparison to the Brits who lead the way with 35% but, in my opinion, the start of a greater wave of Russian clients on the Costa del Sol. Russian purchasers tend to be quite privileged and have money to spend on top quality homes. Most are seeking a villa, as opposed to an apartment, and some are especially drawn to secure, private, gated communities such as La Zagaleta – one of Spain’s most coveted country estates. Price tags of two million euros, ten million euros, don’t tend to scare them.”
The Russian community is certainly making its presence felt on the Costa del Sol. Currently under construction 10km west of Marbella is the largest Russian Orthodox Church in Spain, sponsored by the Moscow Patriarchate and designed by a Russian Architect, a place that will also become a cultural and social centre for meetings celebrations and events. Local retailers are starting to stock native Russian produce, restaurants catering to Russian taste buds and everyone from gymnasium owners to health clinics learning the language in order to communicate professionally with this lucrative market.
Nick continues, “The kind of Russian who comes to Marbella has a healthy bank account and will spend good money on golf courses, in elite fashion boutiques and fine dining restaurants – up to double that of their British counterparts. Little wonder Costa enterprises are adapting their business models accordingly. And, as Marbella will always have something that Russia doesn’t, endless bright sunshine and long warm summers, we can expect our new Russian neighbours to be around for some time.”
The Spanish Consulates in Moscow and St Petersburg have had to double the number of staff handling visa applications, although complaints are made about Spanish bureaucracy, the time it takes to obtain permits and the restrictive nature of maximum 90 day visas.
If, however, the Spanish Government goes ahead with its proposal to offer residency to foreigners who spend more than 160,000 euros on a property, the number of Russians, and indeed Chinese and other investors outside of the EU, participating in Marbella’s property market could really surge. A very welcome ray of light in a market that is still adjusting to reduced overall purchaser activity, suppressed prices and very little new construction at all.
