The Marbella property market has seen some turbulent times since the property bubble burst back in 2007. Since then, there have been various twists and turns and unpredictability with regards to the state of the market recovery, leaving some potential buyers a little apprehensive with regards to purchasing a property for investment purposes. Several hurdles such as planning issues and the disputes over exactly which pieces of land are eligible for construction and which not, have been a driving force contributing to buyers searching further afield from Marbella itself when looking to buy a property in the Marbella area.
The Rise Of Surrounding Areas
Marbella’s planning issues are providing further growth for areas in the Marbella property market such as Benahavís, Estepona, and Mijas, which have individually followed in the wake of the new recovery crafted by their bigger, more internationally known neighbour. The shortage of land in prime locations in Marbella combined with the city’s natural expansion has also meant that land in neighbouring areas like Benahavis and Estepona have become increasingly in demand, mainly due to the fact there is still space for future development.
Other Contributing Factors To The Expansion Of The Marbella Property Market
There is also another major factor contributing to this process. A lot of the important residential investment carried out by large US and international funds was already centred upon Estepona and Benahavís and Mijas prior to the PGOU restrictions hitting Marbella in November of 2015, with projects such as Cosmo Beach (Estepona) by RCS and Sunset Bay Village. Futher examples include Golf Hills Village in Estepona and Jardinana in Mijas Costa, both owned by investment group CTH Capital, (a London based firm) with the participation of JAMSA.
Land is cheaper and generally more plentiful in areas like the New Golden Mile, but as a rule of thumb this is also reflected in the sales price the properties built on this land can achieve, so the growing popularity of these surrounding areas is not justified by price, planning and availability alone, but also by the growing demand from potential buyers.
Areas that were once disparate towns and resort areas are becoming increasingly homogenised – not just because of the geographical spread of development, but also because the glamorous appeal of Marbella and the Golden Mile is rubbing off on its neighbours. Prime locations in Marbella, Puerto Banús and the village of Benahavís are forecast to gain further exclusivity in the process, but the lack of large pieces of undeveloped land within the more consolidated central parts of this region, means the area of Marbella East, Mijas Costa, Ojén’s La Mairena, Benahavís and Estepona are becoming highly attractive options for the extension of the Marbella way of life.