The real estate market on the Costa del Sol is going from strength to strength, yet one constant fact remains – it’s all about the location.
The Marbella property market has been plagued in recent years due to the annulment of its General Urban Planning regulations (PGOU), which have only been reinstated. One of the effects of this was a slowdown in granting building licences for new construction in the Marbella area at a time when buyer demand was increasing. As a result, major investors, who are typically always in a hurry to reap the rewards of their investments, looked to other areas of the coast where they could get planning approval through without a wait. It may appear that these new areas, where new developments are springing up at a rapid pace, are the new most desirable locations, but this is not strictly true. Any buyer looking for a property on the Costa del Sol now, should be aware that things are not always as they seem and are advised to do their research into the market conditions.
What we are currently seeing is an oversupply of property in some areas with a corresponding slowing down in sales. Eventually, we can expect that prices will not rise as predicted by developers and promoters. Many of these off plan new properties have been purchased by investors and most likely will all come together as re-sale on the market when completed. And those buyers who are not first in will discover that the resale potential is also reduced due to the high supply.
Marbella, on the other hand, offers an exceptional opportunity for buyers and sellers who take an educated approach to the local property market. Location, location, location – this has been the name of the game everywhere and always, not only in Marbella. You’ll never lose money if the location is right. Marbella is in the unique position of being a location where buyers can always be sure to keep the value of their investment and, with the right product, also make gains.
The lack of new properties has meant that demand is outstripping supply in the Marbella area, which takes in the wider area stretching from Cabopino in the east to Nueva Andalucía in the west. Properties in prime locations that come on to the market in Marbella are like a precious jewel due to the shortage of luxury properties. And, because of this, Marbella properties hold their price and sell faster than other areas, although the price has to be right and the presentation as well. Hence, those who purchase real estate in any prime location in Marbella, don’t lose their money. To sum up, when looking at where best to invest in property, Marbella and its prime locations is still a winner.Smadar Kahana | Managing Director | 13/Apr/2018