High-end property entrepreneurs in the 'Golden Triangle'—comprising Marbella, Estepona, and Benahavís—are forecasting a rise in sales for luxury properties in the latter half of 2024, despite a general market downturn.
This optimistic outlook was a key takeaway from the latest round table event hosted by DOM3, an association of entrepreneurs and professionals in the luxury housing sector. They attribute the anticipated growth to a surge in luxury home sales, which has cemented the Costa del Sol as one of the world's premier residential destinations. "This boom is boosting a business sector that has become the region's main economic engine," a spokesperson for DOM3 stated.
These predictions starkly contrast with the broader national property market, which saw a 19.3% decline in March, according to Spain's national statistics institute (INE). Even more concerning was a 27.8% drop in property sales in Malaga province. However, the Golden Triangle is bucking this trend, with demand in certain areas outstripping supply.
According to DOM3 members, the region's appeal to affluent international buyers is driven by a solid legal framework, competitive pricing, and favorable weather, boasting over 300 days of sunshine annually.
Key Challenges
The round table, chaired and moderated by DOM3 president Charly Simon, identified three major challenges the Costa del Sol must tackle to sustain its growth: improving local infrastructure, ensuring water supply, and enhancing public safety. José Luis Rodríguez from Ros Legal emphasized the need for the town halls of Marbella, Estepona, and Benahavís to collaborate and pressure governing bodies for these improvements. He noted, "The high revenue this sector generates for public coffers through property taxes and building licenses warrants such action."
Architect Manuel Burgos highlighted how prospective clients' perceptions begin upon arrival: "They start analyzing Marbella as soon as they leave Malaga Airport, and sometimes the cleanliness isn't up to par. We are already lagging in infrastructure, and the town hall must address this."
Issues and Solutions
While the Costa del Sol welcomed over 14 million visitors last year, challenges such as drought, road congestion, and public safety concerns could threaten these numbers if not addressed. DOM3 is calling for proactive measures from public administrations to mitigate these issues.
To counter the lack of public infrastructure, many high-end buyers are opting for gated communities with private, on-site services.
Looking ahead, DOM3 expects the luxury property market to continue its upward trajectory, though they caution that the shortage of experienced professionals and new housing stock could pose challenges.
Conclusion
The Golden Triangle's luxury property market stands resilient amid a national downturn, driven by international demand and the region's unique attractions. However, sustained growth will require addressing infrastructure, water, and safety concerns through concerted efforts from local authorities and stakeholders