Germans have now been overtaken by Russian buyers to become the second largest group of international homeowners in parts of Spain.

According to the Malaga Developer’s Association, Russians now make up 9% of foreign property buyers in Spain while the number of Germans is at just 7%. British buyers still lead at 35%.

Marbella property experts believe this is a trend set to continue. ‘Russian buyers 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 drawn to secure, private, gated communities such as La Zagaleta, one of Spain’s most coveted country estates,’ said one representative of the Spanish property market.

The fact that the largest Russian Orthodox Church in Spain is being built 10 kilometers west of Marbella simply cements the idea that this Russian community integration is set to be a long-term thing, and buyers are showing no sign of slowing down. The church, which is sponsored by the Moscow Patriarchate and designed by a Russian Architect, is set to also become a cultural and social center for meetings celebrations and events for Marbella’s Russian community.

Local retailers are beginning to stock Russian produce, while restaurants are now catering to Russian taste buds. Business owners, from gymnasium owners to health clinics, are learning the language in order to communicate efficiently with this potentially lucrative market.

The draw of Marbella to its Russian patrons (especially those with a healthy bank account) is the abundance of golf courses, elite fashion boutiques and fine dining restaurants, at all of which they usually willing to spend 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 neighbors to be around for some time.

The Spanish Consulates in Moscow and St Petersburg have doubled the number of staff handling visa applications, although complaints have been made about Spanish bureaucracy and the time that it takes to obtain permits, as well as the restrictive nature of the maximum 90-day visas. However, if 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 European Union, participating in Marbella’s property market could dramatically increase.

While the majority of the Spanish property market is seeing reductions between 20 and 40%, and in some extraordinary cases even further, the luxury sector is profiting from wealthy Russian and Asian buyers across the globe, a surge that has been, at least in part, attributed to the Russian middle classes becoming more affluent and snapping up properties overseas in sought after locations. In the past it was only a select few oil rich Russians that had immense buying power, however this seems to changed and evolved into a much more open market

The fact that Russian buyers will pay elevated prices if the product meets their expectations means that the new builds on the Marbella beachfront are kept in high demand. These types of properties have been recession proof, where developers continually invest in the latest designs and construction techniques while still reducing the sale price accordingly with the market.

Today’s buyers are changing too, insisting almost exclusively on sea views and quality designs which means that we are obliged to offer only the very best of what the market has to offer. Interest in Andalucían rustic style homes is now very rare, with many buyers viewing it as second best.

The proposed residency law has definitely had an effect as well. Interest has been expressed from Middle Eastern and Asian groups, and will purchase property purely to meet the requirement for residency. In many cases they will never even make use of that property with their sole interest being Spanish or European residency.