Buying a house in Marbella can cost up to 60% less10 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.
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.”
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
Article by Brice Benarroch Mennessons10 Jun 2014