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In this article, Realista will share some landmark Middle Eastern Investments in Costa del Sol and their impact on the region’s real estate market.
Key Middle Eastern Investments in Costa del Sol
Middle Eastern investments in the Costa del Sol, particularly in luxury real estate, have grown significantly in recent years. Here is an overview of some of the key investments made by Middle Eastern Entities.
La Zagaleta Acquisition by Modon Holding
One of the most high-profile transactions in Costa del Sol real estate was the recent acquisition of La Zagaleta by Modon Holding, an Abu Dhabi-based real estate developer. Known for its exclusivity, world-class amenities and high-profile residents, La Zagaleta is the most sought-after destination for luxury living in Spain.
The deal aims to enhance La Zagaleta’s reputation and further solidify its position as a global benchmark for luxury living.
Majarambuz Project in Sotogrande
The acquisition also includes the Majarambuz project in Sotogrande, a prime undeveloped land with potential for future development. Covering 2.2 million square meters, the project aims to deliver luxury villas, world-class golf courses, and exclusive clubhouses, setting a new standard for upscale living. This project is expected to boost Costa del Sol’s appeal among international investors further.
This Acquisition of La Zagaleta shows the growing interest of Middle Eastern investors in Spain’s high-end real estate market as it was Modon Holding’s first major real estate investment in Europe.
To know more about the deal, read our article about Modon Holding’s Acquisition of La Zagaleta
DarGlobal’s Premium Developments: Tierra Viva and Marea
DarGlobal, a prominent real estate developer with a strong presence in the Middle East, has made notable investments in the Costa del Sol and launched two significant projects in the area: Tierra Viva and Marea.
Tierra Viva
Located in the picturesque Benahavís municipality, the Tierra Viva project is designed to offer residents a luxurious and modern living experience. This exclusive gated community features just 53 luxurious villas, each inspired by the iconic Automobili Lamborghini brand.
Marea
Similarly, Marea by DarGlobal is an exclusive gated community in Costa del Sol, offering luxurious homes with 2 to 4 bedrooms. The project is located near Finca Cortesin resort with convenient access to Marbella’s vibrant centre and two iconic marinas, Puerto Banús and Sotogrande, both just a few minute’s drive away. The project includes facilities like 24/7 security, an infinity pool, tennis courts etc.
By launching these projects, DarGlobal has positioned itself as a key player in the Costa del Sol’s luxury real estate sector. The company’s projects are not only attracting buyers from the Middle East but also contributing to the region’s economic growth and development.
Unicorn Royal Emirates’ Estepona Project
Unicorn Royal Emirates, an equity investment fund based in the United Arab Emirates, has recently made a significant investment in the Spanish hospitality sector. The firm has acquired a beachfront hotel project located in the coastal town of Estepona.
With an estimated total investment exceeding €150 million, the project will feature a five-star hotel, a collection of high-end residences, and a range of premium amenities and facilities. The development is not only poised to attract tourists but also aims to attract individuals and families to make Estepona their permanent residence.
Furthermore, the project is set to impact the local economy positively. It is anticipated to create over 250 direct and indirect jobs during its construction and operational phases, significantly boosting employment in the region. Additionally, the influx of tourists and residents is expected to generate increased revenue for local businesses and contribute to Estepona’s overall economic growth.
PIF Partnership with LIV Golf at Real Club Valderrama
The Public Investment Fund (PIF) of Saudi Arabia has formed a strategic partnership with LIV Golf to host a series of high-profile golf tournaments at the renowned Real Club Valderrama in Sotogrande, Spain. This collaboration is set to elevate the global standing of Costa del Sol as a premier golf destination, attracting golf enthusiasts from around the world.
Moreover, the partnership is expected to have a positive effect on the region’s economy. The influx of tourists and potential investors drawn by the prestigious golf events is likely to boost tourism revenue and real estate development.
Mabel Capital and Bloom Holding Joint Venture
Bloom Holding, a prominent real estate development company from the UAE, and LEAD Development, a leading player in the UAE’s real estate sector, have entered into a strategic joint venture with Mabel Real Estate, the high-end residential arm of Spain’s Mabel Capital. This collaboration aims to redefine luxury living in Costa del Sol by co-developing an exclusive residential project in Marbella.
The venture will bring to life the “Mabel Marbella Residences,” an ultra-luxurious development spanning over 100,000 square meters in Marbella’s prestigious Golden Mile.
This partnership promises to deliver a groundbreaking project that caters to global buyers seeking exclusivity and privacy in a prime location with all world-class amenities and beautiful Mediterranean views.
Rumoured Saudi-Led Acquisition of Sotogrande
There have been ongoing discussions surrounding a potential Saudi-led acquisition of Sotogrande, one of Spain’s most prestigious luxury residential areas. While details remain speculative, such an acquisition could mark another milestone in Middle Eastern influence on the Costa del Sol.
Drivers Behind the Surge in Middle Eastern Investments
The Costa del Sol has emerged as a prime destination for Middle Eastern investors due to its luxury lifestyle and investment potential. Here are the key factors that make the region appealing:
Economic Diversification
Gulf states are actively diversifying their economies beyond oil and gas. Investments in European real estate, particularly in stable markets like Spain, offer lucrative returns and long-term security.
Luxury Lifestyle
The region is known for luxury and offering upscale amenities such as world-class golf courses, marinas like Puerto Banús, Michelin-starred restaurants, and designer boutiques. Exclusive gated communities, such as La Zagaleta, and iconic destinations like Marbella’s Golden Mile attract high-net-worth buyers seeking luxury and privacy.
High-Quality Infrastructure
The Costa del Sol has modern infrastructure, including advanced healthcare facilities, international schools, and reliable public services, making it an ideal destination for families and retirees.
Climate and Natural Beauty
With over 320 sunny days a year, the region offers a Mediterranean climate that appeals to investors seeking a pleasant environment year-round. In addition to the climate, Costa del Sol’s stunning beaches, picturesque mountain ranges, and lush landscapes create a perfect balance of natural beauty and luxury living.
Growing Tourism Links
Costa del Sol has become a favoured holiday destination for Middle Eastern families. Frequent visits often translate into property purchases for vacation homes or rental investments.
Investment Opportunities
The Costa del Sol offers a dynamic real estate market with opportunities ranging from luxury villas to large-scale developments. Middle Eastern companies have invested in marquee projects such as the recent acquisition of La Zagaleta by Modon Holding and the JV of Bloom Holding and LEAD Development with Mabel Capital to develop Mabel Marbella Residences, which shows the confidence of Middle Eastern Investors in the region’s potential for growth.
All these attributes, combined with the stability of the Costa del Sol real estate market, continue to attract both corporate entities and individual investors.
Economic Impact on the Costa del Sol of Middle Eastern Investments
The influx of Middle Eastern capital has made a positive impact on the region’s economy:
- Rising Property Values: Increased demand for high-end properties has driven up real estate prices.
- Job Creation: Large-scale developments are expected to generate employment opportunities in construction, hospitality, and related sectors.
- Boost to Local Economy: Investments contribute to an increase in tourism, retail, and local businesses, helping in the overall growth of the local economy.
Conclusion
Middle Eastern investments in high-profile projects like La Zagaleta and Mabel Marbella Residences show the region’s appeal and its ability to attract global capital. These investments are driving economic growth and solidifying Costa del Sol’s position as a prime destination for luxury living and real estate investments.
