How much does it cost to build a luxury villa in Marbella?

This Market Report by Pure Living Properties Offers the keys to building a luxury villa in Marbella 

1. Guide for to build a Villa in Marbella

Marbella, nestled in the ‘Golden Triangle’ alongside Benahavís and Estepona, stands as one of the world’s most exclusive locales for luxury villas, be it for year-round living or as a secondary or tertiary residence to enjoy leisure time and the Mediterranean lifestyle. If you desire a home in Marbella, you have two paths: building a custom villa from scratch or purchasing one of the select properties available on the market, whether new or second-hand, and then adapting it to your preferences and needs.

1.1 Choosing the Area and Plot

Identifying the future location of your home is the first step in constructing your dream. Decide whether you want it near the sea or nestled in the mountains, close to urban centers and shopping areas, or surrounded by nature.

The Golden Triangle offers options for all preferences in some of the world’s most coveted and exclusive areas and developments. Plot prices vary not just by size, but also by location and land availability in the chosen area.

In Las Lomas de Río Verde, close to the sea and Marbella’s urban core, plot prices start from an average of 3.7 million euros for around 2,000 m² and can reach up to 20 million euros for those with sea views and over 10,000 m².

In Sierra Blanca, one of Marbella’s most exclusive areas, urban land prices start from approximately 1,000-2,000€/ m², and the average plot size ranges between 1,500-2,000 m².

In Altos de los Monteros, more remote plots start from 700,000 euros for 1,500 m², going over 1.5 million for urban plots of about 2,000 meters with sea views.

In Puerto Banús, a traditionally high-demand area of Marbella, a buildable plot of about 3,500 m² is priced around 4.8 million euros, reaching up to 18 million if the land is near the sea and exceeds 15,000 m².

La Zagaleta, one of the world’s most exclusive developments, still has numerous plots available. Prices vary based on size and factors such as orientation, views, or proximity to the resort’s golf courses. Properties overlooking the sea and the Rock of Gibraltar are most sought after. Premium location plots can even reach 10 million euros for 10,000 m².

 

At Pure Living Properties, we have land in strategic areas to offer our clients the opportunity to build their dream villas from scratch. Here are some examples of the plots we manage:

• A plot in Marbella’s Golden Mile with panoramic sea views, spanning 1,300 m², priced at 1.3 million euros.
• A plot in a relaxed area of Estepona, considered the new Golden Mile, extending over 6,300 m², priced at 1.6 million euros.
• A plot in Nagüeles of over 4,000 m², with sea views and the capacity to build up to four villas, priced at 3.5 million euros, one of the last large buildable plots available in the area.

After choosing the area and plot, consider that prices do not include additional expenses such as land registration, notary fees, and the Property Transfer Tax (ITP) at 7% of the sale price. This can be added to VAT (10%) if not already included, and the AJD Tax (1.2% of the purchase price) on new properties, subject to certain conditions.

Before finalizing the purchase of a plot, it’s crucial to know the legal status of the land, which can be obtained from the Marbella Property Registry, offering personal and online services via their website. It’s also important to know the urban classification of the land we are acquiring, information available from the Marbella Town Hall, where an urban report should be requested.

To facilitate the task of buying a plot to build a house, the best option is to hire a lawyer specialized in real estate and urban law, who will legally advise on all transactions until acquiring the land.

Pure Living Properties has a wide network of professional collaborators, experts in various urban law matters, to advise and recommend the perfect lawyer for each issue.

1.2 Project and Architect

When beginning to define our dream home, we need to find three key professionals: the architect, the technical architect, and the project manager. Choosing these professionals and coordinating among them is essential to ensure the project’s success.

The architect will be responsible for creating the project from scratch, shaping our dreams. Considering preferences, the desired style, and the land’s specifics, the architectural studio will custom-design the home, setting guidelines for all the professionals involved.

The architectural project for a home typically accounts for between 6% and 7% of the total cost. Therefore, for a medium-sized villa priced at around two million euros, it would be around 130,000€.

Each architect has their personal signature and style, so it’s highly recommended to visit some of their designed works before choosing the professional who will undertake our home project. Here are some of the reference studios in Marbella:

• Diego Tobal. Integrates traditional and contemporary architecture, creating custom villas that blend with the landscape, boasting over 40 years of experience in luxury construction.
• Ismael Mérida. This studio undertakes comprehensive projects combining architecture, interior design, and landscaping, as well as engineering, planning, and urbanism.
• Juan Salvador Shvartzberg. Specialising in classic and contemporary architecture, he is adept at creating projects in harmony with the environment, with numerous works in La Zagaleta, Sotogrande, or Sierra Blanca.
• Alejandro Giménez Architects. A studio heavily influenced by the Mediterranean style and the architecture of white villages.
• Guillén & Asociados Architects. With experience in countries like Switzerland, Argentina, Uruguay, and Asia, the studio focuses on quality architecture and the most exclusive designs.
• Graciela Leanza. Architect and interior designer. Her projects combine avant-garde nuances with more eclectic elements in textures and materials. She has completed luxurious private villas, developments, and hotels in the most prestigious areas of the Costa del Sol.
• Pablo Villarroel. The second generation of an architecture with its own hallmark started by his father Melvin Villarroel, emphasizing landscaping and the Mediterranean style. The studio boasts 50 years of experience in Marbella and other top national and international destinations.
• Ames Studio. Specialised in high-end villas, combines design and functionality to realize the dreams of their clients.
• INHABIT. Based in Marbella, offering international services, undertakes comprehensive projects encompassing architecture, interior design, and decoration.

Do I Need a Project Manager?

A project manager ensures the construction of our home follows the agreed conditions and parameters. They should coordinate with all professionals and companies involved in the build. The Project Manager plays a crucial role in luxury home construction, ensuring quality standards, deadlines, and budget compliance, and that the owners are satisfied with the final outcome. Their experience and management skills are vital for project success.

Key functions of the project manager include planning and scheduling with architects, designers, and contractors, selecting companies and professionals for construction, coordinating and supervising the professional team, quality control, and managing possible changes. Undoubtedly, a fundamental objective of this role in a housing construction project is to ensure client satisfaction, necessitating constant communication to report progress.

Do I Need a Technical Architect?

Similar yet distinct from the project manager, the technical architect, also known as the construction manager, will oversee aspects like technical supervision and control of the work, document management, cost control and adherence to the budget, coordination of subcontracted services, and quality supervision. In short, the technical architect is essential for technical supervision, financial management, and construction coordination.

1.3 Project Execution and Construction Company

Executing the project, i.e., constructing our home, is undoubtedly the most crucial step in this process, bringing to life the architectural studio’s design and following all the guidelines set by the professionals. The cost of constructing a luxury villa in Marbella depends on various factors, such as size, the chosen company for execution, and the materials used. The average cost for a standard-size villa with pools, gardens, and outdoor areas typically rounds to about 2 million euros, although this amount can increase for larger constructions or more exclusive facilities.

With the rise in luxury construction, many companies in Marbella and its surroundings have specialized in recent years in building majestic villas. Here are some of the companies specialized in luxury construction:

• B. SOLÍS. With over 25 years of experience, has built more than 200 high-end homes in the most exclusive areas of the Costa del Sol.
•  Jamena Construcciones. A company with 40 years of experience and over 100 professionals dedicated to high-quality building.
• Atlas Group. A company specializing in the design and construction of luxury villas in premium areas of Marbella and the rest of the Costa del Sol, with some international projects in Nice and Monaco.
•  Construmarbel. Based in Marbella. This company specializes in the new concept of luxury, focused on design and technological advancements.

1.4 Licenses and Taxes

One of the first steps in our construction project is applying for all necessary permits and licenses. Although most are common across Spain, there may be specific requirements depending on the municipal area where our plot is located, so the first step is to contact the urban planning department of the relevant Town Hall: Marbella, Benahavís o Estepona.

Regardless of each municipality’s urban planning, these are the essential permits required for building our home:

1. Building Permit. The main permission to carry out the construction. We must apply for it at the Town Hall, presenting the plans and all technical documents describing the project. The price of this license varies based on the project, its size, and the materials used.
2. Environmental Impact Study. If our future house is near protected natural areas or the project is of significant impact, an Environmental Impact Study is necessary, along with the required permission from the Andalusian Environmental Agency (www.juntadeandalucia.es/organismos/sostenibilidadmedioambienteyeconomiaazul.html).
3. Geotechnical and Structural Studies. To ensure the construction is safe and complies with all regulations, geotechnical and structural studies of the project may be required.
4. First Occupation License. Once construction is complete, to inhabit, rent, or use the property, we must obtain this license, which verifies that the building meets all necessary regulations. The Town Hall also grants this license, and its price varies depending on the municipality and project, averaging around 450€.
5. Permission and Registration for Public Services. To equip our home with basic energy and water supplies, we must register these services with the companies operating in Marbella. Acosol The public company managing water services on the Costa del Sol, where we can find everything needed for home registration. Hidralia. A water management company serving the Golden Triangle (Marbella, Benahavís, Estepona) where we can directly process the license. For energy supply, we must register directly with the chosen company. Endesa and Iberdrola are two multinationals providing services in the area
6. Activity License. If we intend to use our new house for commercial purposes, such as tourist rentals managed by Pure Living Properties (www.purelivingproperties.com/rentals), we will need a commercial activity license, which must be applied for with the Andalusian Government.

Normally, the construction company or the project manager handles all these license applications, but it’s appropriate for the owner to be aware of all the steps in their home construction project.

In this project phase, it’s essential again to have a lawyer specialized in urban matters who will handle all these procedures, as well as any legal issues that arise during the construction of our new villa in Marbella, making the process much easier.

1.5 Interior Design and Decoration

The personality and character of our villa are defined from the architect’s first sketch, but it will be the interior design team’s work that really determines the style of our new home. Decoration will be key to making this project our home, whether for year-round living, long holiday stays, or to earn income through rental. Interior design trends for this newly begun 2024 continue the trajectory set in 2023, but with a strong commitment to innovation and incorporating technology into the home. Here are some of the key trends shaping interior design this year:

– Sustainable design.  the focus on environmental care means construction is increasingly sustainable, a trend also evident in home interiors with a strong emphasis on natural elements like wood and greater importance on green areas and plant-based decoration.

– Smart Homes. Home automation and domotics advance to control everything from any location, and the design of devices has also evolved to integrate seamlessly into a home’s interior design project.

– Quiet luxury. This rising trend in the luxury market also reaches interior design this year, featuring noble and high-quality materials, art pieces, and designer jewel-like furniture that shy away from ostentation and overexposure of logos.

The cost of an interior design project for our villa depends on factors like the chosen studio, style, size, and the services offered by these professionals. The average cost starts from 2,000€/100 m².

“For a medium-sized villa, around 500m2, the fees for an interior design project are approximately 35,000 €, to which is added about 500,000-600,000 € for the cost of materials, although these amounts can vary significantly depending on the chosen materials,” indicate from Gunni&Trentino.

Marbella boasts a wide catalog of professionals capable of meeting our needs, here are some of the reference studios:

• Aalto Exclusive Design. Located in the heart of the Golden Mile, it has a 1000m2 showroom and specializes in bespoke projects.
• Heidi Gubbins Interior Design. A boutique studio based in Marbella working internationally, specialized in luxury residential projects.
• Pedro Peña. Starting in the 1970s in Marbella, it now has a showroom of over 3,500 square meters where clients can view its work.
• Gunni&Trentino. A showroom specializing in high-end decoration, a national company with over 50 years of experience in premium decoration, specialists in comprehensive work in services and products. Its spaces feature a selection of the top design brands in kitchens, indoor and outdoor furniture, wardrobes, flooring, taps, sanitary ware, and lighting.

1.6 Comfort Installations, Home Automation

The comfort level of our home will depend on the quality of the installations. Having a home automation system that allows interconnection between them, as well as with Siri, Alexa, and Google Dot assistants, will make our life easier and also have a significant impact on efficient resource management.

Incorporating Smart Home technology into our home construction project offers multiple advantages. Here are some of the essentials:

• Confort. An automated home allowing us to control parameters like lighting, climate, sound, audiovisual equipment, the pool, or garden watering from an app is much more convenient than one without such technology.
• Sustainability and energy efficiency. A smart home manages resources efficiently, leading to less environmental impact and significant savings for the owner
• Security. Home automation enables the implementation of video surveillance cameras and sensors connected to security forces, capable of detecting any incidents and notifying both the owner and the authorities.

The price for complete home automation of a luxury villa depends on its size, installations, and the quality of the devices used. Currently, total home automation control for a 1,200 m² house is around 85,000€

This adds to the rest of the technical installations necessary to ensure maximum comfort in a villa, collectively costing around 485,000€. Centralized air conditioning in all rooms is priced at about 200,000 euros, underfloor heating around 85,000€, the complete electrical system about 80,000€, and intelligent lighting inside and outside the villa approximately 120,000€.

Here are some of the reference companies in technical installations to guarantee comfort, specializing in the luxury villa segment.

 

• TecnoClima.An engineering, installation, and maintenance company specializing in luxury residential. It designs the complete installation of the house, including climate control, plumbing, electricity, home automation, and audiovisuals.
• PROINSERMANT. A leading company in Marbella for home automation installation and in the design and creation of Smart Homes. It also offers services in plumbing, pools, home cinemas, energy control, and telecommunications.

 

1.7 Kitchen Design and Installation

The kitchen, one of the main rooms of a home, also involves one of the largest investments in our future villa’s construction project. As with other sections, the final price depends on multiple aspects like size, appliance brand, and material quality. For a standard-sized villa with high-end equipment and appliances, the average price currently ranges between 60,000€ and 70,000€ although this figure can increase considerably based on our preferences.

The Costa del Sol has a wide range of companies specializing in the design and installation of luxury kitchens, here are some of them:

• Boffi. An Italian firm specializing in designer kitchen furniture.
• Bulthaup. A German-origin design kitchen brand, specializing in top-level villas. It has a presence in Marbella, where it carries out bespoke projects for clients in the Golden Triangle.
• Decodan Studio. Over 15 years of experience in creating custom kitchens.
• Fernando Moreno. Offers 5,000 m2 of exhibition space for bathroom and kitchen supplies and decor.
• Puya. A family company with over 45 years of experience, specializing in the design of indoor and outdoor bathrooms and kitchens.
• Danespan. Designs and manufactures bespoke kitchen and barbecue furniture for luxury villas. It also has a dedicated section for bathroom furniture, dressing rooms, closets, and living rooms.

 

1.8 Landscaping and Garden Design

Marbella’s climate, with over 300 sunny days a year and pleasant temperatures across all four seasons, makes outdoor areas a key aspect of a home. Designing the garden, pool, and terrace, relaxation, or fun areas is a crucial step in defining the house’s personality and style. The first step is to shape our ideas, which requires finding a landscaper to design the garden and pool efficiently and sustainably. The price of a landscaping project for a medium-sized villa ranges between 3,000€ and 5,000€.

In Marbella, there is a wide range of professionals to approach for our desired garden design, here are some of the landscapers and companies in the area:

• Beatrice Perlac. CEO of Adarve Gardens, has a unique style that fuses beauty and functionality in gardens in harmony with nature.
• Laura Pou. A leading landscaper in the Costa del Sol, boasts decades of experience designing gardens for luxury villas and housing developments.
• Juan Pedro Sacedón. A team of professionals offering landscaping, architecture, and design services, especially focused on the luxury construction sector.
• Carlos González Mora. An architect and landscaper with over 40 years of experience in custom garden design.

Once our garden project is designed, we can shape it and make it a reality, requiring a specialized company, which can be the same one that did the design or another meeting all the requirements set by the landscaper. Executing the gardens of a medium-sized villa costs between 40,000€ and 50,000€, but can reach even 150,000€ or 200,000€ euros in larger properties and in developments like Sierra Blanca or La Zagaleta.

In Marbella, there are numerous companies for constructing and maintaining gardens, many of which specialize in bringing to life and creating green spaces in majestic luxury villas. Here are some of the leading companies:

• Agrojardín Landscaping. A leading company in creating and maintaining gardens and green areas, also offers design consultancy.
• Viveros Gúzman. One of the largest plant producers in Europe, also undertakes custom projects for villas and residential developments.
• Atlas Group. A construction company specializing in luxury villas, also has a department specializing in designing, creating, and maintaining gardens, green areas, pools, and wellness zones.

While shaping the garden, the pool construction also takes place. This can also be handled by the same landscaping and green areas company, the villa’s construction company, or a firm specializing in this sector. The construction cost depends on the chosen materials and incorporated pool features. Most include basic salinization and LED lighting equipment, but Infinity Pools, those with exclusive mosaics, covers, heating systems, or controlled through home automation are also common.

Prices for these pools start from between 40,000 and 60,000 and reach 200,00 to 250,00 for the most equipped and exclusive ones.

1.9 Starting to Live

Once our dream has come true and we have our desired villa in Marbella, if we have initiated this project to live there, whether year-round or just on vacation, we now need to seek the various professionals who will manage the home.

A good option for managing the day-to-day in our new home is to rely on a household manager, who will be responsible for organizing all professionals performing cleaning, cooking, childcare, or maintenance of the garden and pool. Additionally, they will coordinate the various companies providing services at our house.

The salary for this professional profile depends on their training, experience, and dedication and can reach up to 2,000 euros per month.

– The Role of Concierge Service

Personalized attention to make our lives easier has advanced significantly in recent years, with the concierge service becoming an increasingly present figure in our daily lives.

These professionals have extensive knowledge of the area and numerous contacts to satisfy our needs and fulfill our wishes, whether on vacation or in everyday life.

Multilingual and highly personalized attention and 24/7 availability are some of the features of this burgeoning service. Here are the main tasks where a concierge service can assist us:

• Comprehensive holiday planning. From managing flight tickets to making restaurant reservations, seeking museum or show tickets.
• Personal shopper service. These professionals will handle any purchases we need and provide guidance and contacts in the most exclusive boutiques.
• Transport organization, Airport transfers, coordinating transfers, or locating and managing exclusive services like helicopter trips.
• Beauty and wellness. Managing appointments, reservations, and schedules at specialized personal care centers.
• Security and health. Emergency assistance, medical appointment management, or resolving incidents like lost keys.
• Leisure and free time. Recommendations, and booking management in restaurants, cocktail bars, events, or shows.

Pure Living Properties offers a Home Care department that manages complete property management, from cleaning to renovations or maintenance, including any other service the client may need to fully enjoy their home.

1.10 Capitalizing on the Investment

Once our villa’s construction project is complete, if we haven’t undertaken this project for habitation but rather for economic profitability, we can sell it or rent it for long-term or short stays.

Pure Living Properties has departments specialized in sales, long-term rentals, and holiday rentals to maximize the return on investment made. If we opt for holiday rentals to a select market, the price of our villa per night could start from around 1,000€ and even reach 25,000€ depending on the size, the services it offers, and the time of year.

If we choose long-term rental, our villa could generate monthly income between 15,000€ and 30,000€  depending on the size and area where it’s located, as well as other aspects like views, services, or surrounding environment.

If our goal is to quickly and directly achieve profitability, the best option would be to sell our villa. In Marbella and the rest of the Golden Triangle, the current demand for high-quality luxury homes exceeds the available supply, causing continuous price increases. Therefore, by selling our property, we can multiply the initial investment.

The price, as in rentals, depends on the size of the home, the quality of materials, the services the property offers, and its location.

2. BUYING A PROPERTY

The second option for owning a home in Marbella, and what may seem at first glance the simplest, is buying, although there are also key aspects to consider for a good investment:

• Knowing the offer. The first step we should take is a general search on the Internet to understand the market situation and have an approximate orientation of the prices in different areas and in the style of home we want.
• Using the services of a specialized agency. Pure Living Properties has an international team specialized in Marbella’s luxury real estate market that will assist us with everything we need during the property buying process.
• Hiring a specialized lawyer, Like the construction process, in the purchase of a home it’s essential to have a real estate lawyer specialized in international transactions to assist with all procedures.
• Fiscal consultancy. It’s also advisable to consult with a tax advisor to understand the implications of the purchase operation.

 

2.1 Procedures and Documents Necessary to Buy a Property

Pure Living Properties has a team of expert professionals in all the processing to facilitate our clients’ purchase and sale of their dream villa in Marbella.

Buying a luxury villa involves a series of important procedures, and to carry out the operation correctly, legally, and without problems, we need various current documents:

• Identification document. We must have a passport or Foreigner Identification Number (NIE).
• Reservation contract. Should include details like the purchase price, payment deadlines, conditions, and penalties in case of breach.
• Property registry certificate. it’s important to obtain up-to-date information to verify the ownership and legal status of the villa, as well as any charges or encumbrances that may exist on the property.Construction license and permits, we must ensure that the home complies with all current regulations.

• Ten-year insurance. Also known as decennial damage or liability insurance, is a specific policy in the construction field. In Spain, it’s mandatory for developers of new residential buildings. This insurance lasts ten years and primarily covers significant structural damages that may arise in a building during that period.
• Energy certificate. Spain requires an energy certificate for all properties sold or rented. This certificate assesses the energy efficiency of the villa.
• Non-debt certificate. Before buying our villa, we must ensure it’s up-to-date with Property Tax (IBI) payments and any other encumbrances.
• Earnest money contract. A preliminary agreement where an initial deposit is made to reserve a property, must establish the exact terms of the transaction and penalties in case of breach.
• Power of attorney. If we can’t be present during the purchase of the property, we can grant power of attorney to our trusted lawyer to act on our behalf.
• Tax settlement. If the property we’re buying is second-hand, we must pay the Property Transfer Tax (ITP), and if it’s a new villa, we must pay the Value Added Tax (VAT).
• Change of ownership. Once the entire purchase process is complete, we must register the property in our name at the Property Registry and update the change of ownership in utilities like water and electricity.

 

Pure Living Properties, based in Puente Romano, the heart of Marbella’s luxury, has extensive experience and profound knowledge of the high-end real estate market, ensuring success in all its operations. If you dream of owning a luxury villa in Marbella, Pure Living Properties will help make it a reality.