FOR some people, to merely buy a luxury villa it is not enough – they have to build one!
Well, for those people cost is presumably not much of a problem, because the latest data indicates that the cost of building one in Marbella has exceeded €5 million.
This is according to Pure Living Properties, a leading luxury real estate agency in Marbella, which has releasedRevealed: Malaga city is among the hottest property markets in Spain after prices rise by 107% since 2014 –… a guide dissecting the financial layers involved in crafting bespoke havens.
The study, which takes into account the current price of land, materials, and construction costs, found that the average cost of building a luxury villa in Marbella comes to €5.1 million.
The main factors driving the increase in costs are the rising price of land, the increasing cost of materials, and the shortage of skilled labour.
The cost of land in Marbella has been rising steadily in recent years, due to the high demand for luxury properties in the area.
Concurrently, the cost of materials has also increased, due to factors such as the global supply chain crisis and the war in Ukraine.
The shortage of skilled labour is another factor that is contributing to the rising cost of construction.
The study found that the most expensive areas in Marbella to build a luxury villa are the Golden Mile, Las Lomas de Río Verde, Sierra Blanca, Altos de los Monteros, and La Zagaleta.
The cost of building a villa in these areas can start at €10 million and can go up to €20 million or more.
“Many of our clients ponder whether it’s more economical to build a custom home from scratch or to purchase and refurbish an existing property. This prompted us to create this guide,” Javier Nieto, CEO of Pure Living Properties, explained.
The study also found that the most popular features in luxury villas in Marbella are swimming pools, gardens, terraces, and views of the sea.
The average size of a luxury villa in Marbella is around 2,000 square metres.
Post-purchase, the design phase kicks in, with costs varying significantly based on the chosen architect, villa size, and style.
Architectural design for a high-quality residence typically accounts for 6%-7% of the total cost.
With construction prices soaring due to international conflicts and inflation driving up raw material costs, the actual building of the villa is the most expensive phase, estimated at around €2 million.
Interior design projects hover around €35,000, while outfitting a mansion with high-end furniture can cost between €500,000 to €600,000, with kitchen expenses averaging between €60,000 to €70,000.
The integration of state-of-the-art SmartHome systems adds approximately €485,000 to the bill, allowing owners to control various home aspects remotely.
Despite these eyewatering costs, the study concluded that the demand for luxury villas in Marbella remains strong – and will remain so for the foreseeable future.
The high demand is being driven by a number of factors, including the strong economy, the favourable climate, and the beautiful beaches, with the majority of buyers being foreigners.
Namely, the Brits, the Germans, and the Scandis.
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