Buying a house in Marbella can cost up to 60% less

10 Jun 2014 | News and Updates

The peculiarities of the market of Marbella make it so when you decide to buy a house in Marbella, the more expensive houses are the ones that have less varied their prices, since there is a demand for them, and that the cheapest properties are those that have become even cheaper, with declines of up to 60%, according to a tip from Benarroch real estate. Usually, these are homes designed for the national middle class market.

Buying a house in Marbella can cost up to 60% less

The new General Urban Development Plan (PGOU) of Marbella – that was approved three years ago – took into account an exceptional system for legalizing the tens of thousands of houses that had been authorized by the municipal governments of the Independent Liberal Group (GIL) overriding the urban planning rules. It was a system of land or cash compensations which developers would have pay to the municipality for the loss of facilities or open spaces.

16,500 households that obtained their license by overriding regulations, of which some are not even finished yet, could be legalized with the help of this system. So far, more than a thousand houses and one hotel have already been legalized. The period that developers had at their disposal to voluntarily apply for legalization – initially of one year and later extended to two years, is already over, and, three weeks ago, the Local Government Council agreed on starting to send developers the list of requirements that will help them meet their obligations.

The plan provided legal security and helped clear uncertainties that had greatly damaged the markets.

The general impression is that Marbella stays strong. ” There are clear signs of a recovering,” says Brice Benarroch, CEO of Benarroch real estate, and he explains that a “growing demand from Norwegians, Swedes and Danes for products of a certain quality” has emerged, “while also involving groups and investment funds that are once again interested in Marbella”. He also states that the English market, which used to include the number one buyers on Costa del Sol, “has fallen quite a lot, down to the point of being practically paralyzed”; and he confirms that the strongest demand currently comes from Scandinavian countries, where people benefit from funding.

However, a very different behaviour can be perceived on the national market, “The market is recovering, and that is good news, but the less good news is the effort that has to be put in lowering the prices, with decreases of up to 50% and 60% in some cases”, he explains; and he blames it on the real estate stock held by banks that has been put it up for sale at very competitive prices and with many financing facilities, thus pulling the prices down”. “Banks are distorting the market”.

In conclusion, at Benarroch real estate we perceive that we are living an ideal time for anyone who wants to buy a house in Marbella, or for those who want to buy a house in bad conditions and remodel it. “You can buy something that you really like at a very good price”; however, we warn you that “the prices will not get any lower than this, because we are already hitting the bottom line, which is the mortgage burden.”

Fuentes:
Diego Narvaez, El Pais, (2013, 6 mayo). Marbella legaliza un millar de viviendas por compensaciones urbanísticas. Recuperado 10 Junio, 2014, de https://elpais.com/ccaa/2013/05/06/andalucia/1367862692_047225.html

Brice Benarroch Mennessons

Article by Brice Benarroch Mennessons

10 Jun 2014
Share thisArticle

Properties for sale in Marbella East

Mediterranean style villa in Bahia de Marbella, Marbella East

Mediterranean style villa in Bahia de Marbella, Marbella East

1.900.000 €

Mediterranean style family villa situated on the second line of the beach in Bahia de Marbella, Marbella East.Through a well ...

Villa with breathtaking views in Elviria, Marbella East

Villa with breathtaking views in Elviria, Marbella East

5.995.000 €

Villa with breathtaking panoramic sea and mountain views in Elviria, Marbella East.Through a beautiful road we access the main ...

Contemporary Andalusian style villa in Elviria, Marbella East

Contemporary Andalusian style villa in Elviria, Marbella East

SOLD

Charming villa with a design combination of contemporary style and Andalusian style located in Marbella East, in Elviria.Elviria ...

Villa in Los Monteros Playa, Marbella East

Villa in Los Monteros Playa, Marbella East

2.500.000 €

Recently completed villa located in Los Monteros Playa, Marbella East, just minutes from the centre of Marbella and a five minute ...

Apartment close to the beach in Alicate Playa, Marbella East

Apartment close to the beach in Alicate Playa, Marbella East

SOLD

Beautiful apartment close to the beach located in one of the most recognized complexes of Marbella East, Alicate Playa.The ...

Andalusian style villa in Elviria, Marbella East

Andalusian style villa in Elviria, Marbella East

995.000 €

Villa in the newly built Heaven Marbella complex in Elviria, Marbella East, situated next to the Santa Maria Golf Club course and ...