Experts in the Costa del Sol property market warn of a moderation in the pace of sales and a slowdown in house prices in Marbella and its area of influence, known as the Golden Triangle, which includes Benahavís and Estepona.
The uncertainty generated by Brexit and the future of relations between Britain and the European Union and the slowdown of the international economy are holding back sustained growth in the property market that began in 2010, according to a report by the real estate company Diana Morales Properties Knight Frank, which has operated in Marbella since 1978.
Another factor that, according to the analysis, has also cooled sales in the municipality is the fact that Marbella is “in the process of resolving its General Urban Development Plan” after, in 2015, the Supreme Court annulled the 2010 PGOU and the municipal Corporation had to recover the planning of 1986, more than 30 years old.
Municipalities adjacent to Marbella, such as Ojén or Mijas, “have done their homework and have offered developers and customers a wide range of options to meet their needs,” which has allowed them to absorb much of the Costa del Sol property market development, although, the study warns, the increase in prices in these localities has meant a “gradual cooling of interest.
Uncertainty about Brexit “alienates” buyers from the United Kingdom, which, despite being the largest national group in Marbella and the rest of Spain, represent 15 percent of sales compared to 21 percent a few years ago.
The decline has been compensated by an upturn in domestic buyers and especially in the Nordic countries, such as Sweden or Norway, central Europe, such as France, Belgium or Holland, and Arab countries. “All of these regions have solid economic growth and find the Costa del Sol an affordable destination. In fact, Easter is one of the periods used by potential buyers to visit and learn first-hand about their future acquisitions,” the report adds.
The study warns, however, that the forecasts of growth of these economies for this year and 2020, below two percent, and a “lower activity of European and American investment funds” point to “a cooling of large fortunes in the near future,” to which are added the increases in land and construction of buildings.