The Costa del Sol property market in 2019

Publication: 7 Feb. 2020
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Looking at the Costa del Sol, and in particular the Marbella property market in 2019, it was a year of both challenges and opportunities. Internationally, there were the distractions of the American-Chinese trade dispute, fears of a global recession and of course Brexit to contend with, though the first two seem to be fading into the background, and while Brexit has undoubtedly dampened the traditionally strong demand for Costa del Sol property from the UK, it continued to be the largest single market.

The marginal drop in sales to British buyers was offset by increased interest from Scandinavia, France, the Benelux, Middle East and France, while German buyers have taken to new developments situated within the La Mairena, Ojén areas. This points to an overall balance, albeit accompanied by a slowing down in the rate of growth and property prices. However, right now there are a number of positive factors that are putting wind in the sales of the Costa del Sol real estate sector, not least of which is the rise in enquiries and property sales that began to take shape last autumn.

Encouraging factors

• New Andalusian regional government lowers inheritance and gift tax in the region by 99%!
• Progress is being made in speeding up the processing of planning applications, with the first ones in five years recently approved in accordance with the Marbella town hall’s commitment to eradicate bottlenecks
• The same process has seen the town hall commit to publishing the first draft of the new PGOU urban planning directive by the summer of 2020
• Spain and the Costa del Sol record a sixth consecutive record number of visitors in 2019, with a booming tourist and residential tourism sector
• The short and long-term rentals markets are booming
• A series of prestigious international hotel brands will open their doors in the coming years, representing an important level of investment, employment and further raising the standard of service and accommodation in Marbella and surroundings
• The GB pound opens the year up against the euro and dollar compared with most of 2019

Add to this a great variety of newly built and quality resale properties to choose from in Marbella, along with a slowing down in property prices, and the conditions are ripe for a year of steady growth driven by excellent consumer options. Contact the Marbella Hills Homes team for further details if you would like to know more about the property market, lifestyle and quality homes for sale in Marbella.