The Marbella property market has been through many cycles, from boom and bubble to burst and subsequent slowdown. In rising and falling in this way, the local market reacts to the financial and macroeconomic factors that affect the strength of demand elsewhere, mostly abroad. As a result, the Costa del Sol represents an economic island within Spain, that is more in tune with Northern Europe than it is with the national economy.
For this reason Marbella and its surroundings often enter and leave recessions before the rest of Spain, as has been the case with the latest cyclical downturn and recovery. By the time the international financial crisis hit and Spain succumbed to recession, much of the Costa del Sol had already begun to slow down in the face of weaker outside demand. The reverse is also true, and by 2012, when the rest of Spain was still hurting, the first signs of recovery were visible here.
In many ways 2012 was the turning point. Though the recovery in the property sector only really became visible the following year, it has been building on an upsurge in demand, enquiries, sales and investment ever since. Together with an earlier revival in tourist numbers – which continues into 2015 – the property market’s return to growth has given Marbella new wings. Employment is growing, as are new business start-ups, and the town’s famous positive spirit is riding high again.
Property prices have now stabilised and are beginning to rise again in certain areas, investment is flowing in, building land is in demand again and construction activity has resumed as new developments are being launched. These reflect the latest styles and technologies, and new villas and apartments are being designed to give a new generation of homeowners exactly what they want. As the next growth cycle begins, Marbella’s bank-held stock has all but disappeared and financing becomes available again, no-one expects the crazy boom years of the past to return.
Marbella is evolving, and with this it is continuing to invest in beautification projects, new infrastructure and such public projects as the recently opened boulevard in San Pedro Alcántara, the extension of the coastal pathway and the possible extension of the railways to Marbella and on to Algeciras. With prices still highly attractive, interest rates low and the euro now cheap against other main currencies, this is the ideal moment to invest in Marbella real estate again!