The annual DM Properties/Knight Frank Market Report offers an authoritative insight into the dynamics and trends of the Marbella real estate market. With all that happened in 2016, the 2017 DM Properties/Knight Frank Market Report is particularly informative.
2016: Market Trends
The period between 2013 and 2016 offered a clear enough picture of economic revival and property sector recovery on the Costa del Sol spurred on by an earlier (and continued) surge in tourist numbers, the stabilisation of the banking sector and the gradual return to growth of the national economy.
As this trend solidified, what were once ‘toxic assets’ got snapped up by investment funds, most of the previously unsold properties sold out and before long the machinery of the construction industry started moving again.
A new generation of foreign buyers was ready to rekindle the love affair with Marbella, but the landscape had changed since the pre-recession years.
Suddenly newly built properties featuring the latest architectural styling and technical amenities were very much in demand, leaving the market for resale properties to recover but lag behind, with demand for older properties in prime locations with renovation potential also strong. Nonetheless, keen competition for scarce ready-to-build land caused prices to rise fast, particularly in Marbella.
It seemed that the region was on track for a classic up-cycle, yet at the end of 2015 we received the first shock to the system when the 2010 PGOU urban plan was annulled by the Supreme Court in Madrid.
The ensuing problems surrounding planning status in some parts of Marbella have since taken a little of the steam out of Marbella growth, but demand for the properties and lifestyle of this region is so solid that the focus merely shifted to Benahavís, Estepona, Mijas and also Ojén – all town halls untethered by planning licence issues and keen to attract investment…
Words Michel Cruz / Photography courtesy of DM Properties & Knight Frank