Investor confidence in Marbella running high
A consensus is forming amongst real estate professionals that the controversial annulment of Marbella’s 2010 General Plan (PGOU) could well turn out to be a good thing for the town. Despite an initial period of uncertainty following the Supreme Court decision, it is becoming apparent that there is no lack of investor confidence when it comes to new developments in Marbella.
In a recent article in Spanish daily newspaper Diario Sur several prominent businesspeople—including FM Consulting founder and Group President Fausto Martínez—were positive about the town’s prospects since it reverted to the 1986 PGOU.
Sr. Martínez pointed out that investor interest in Marbella has not waned following the annulment of the 2010 plan, and while recognising that there may be a great
er demand for urbanisable land than provided for in the 1986 plan, new activity has not been greatly affected. He said: “We do not have a negative perception—every day we are reassured as more investors contact us and remain interested in Marbella.”
In fact, some professionals believe that the 1986 PGOU is actually better than the 2010 one that was struck off. President of the Federation of Builders of Andalusia, Ricardo Arranz, said that the new situation is certainly no worse than before the Supreme Court decision. “The General Plan we had was unmanageable.” In his opinion the 1986 PGOU is more adaptable to the needs of the city despite being 30 years old.
In a similar vein, the president of the business association CIT Marbella, Juan José González, shares the criticism of the document recently annulled by the Supreme Court. He noted that although there are projects that have been affected by the cancellation of the 2010 PGOU, it has at the same time opened up other areas and freed projects that had been blocked by the cancelled plan but are permitted under the 1986 regulations.
According to Sr. Martínez, the housing market has actually become more active in recent months, with Arab, Russian, German, Belgian and Spanish buyers searching for high end villas as well as contemporary apartments.
While some professionals are calling for more legal clarity, Sr. Martínez says we already have it. “What more legal certainty can you have than a Supreme Court ruling that says exactly what to do.”
Marbella town hall recently announced that it was working to adapt the 1986 PGOU to fit in with more recent planning
regulations from the Junta de Andalucía to increase investor confidence. Meanwhile a new PGOU is also being drawn up to regularise the position of some 16,000 homes left in legal uncertainty when the 2010 PGOU was annulled in a process that could take up to three years. Though issues such as these remain to be cleared up, the demand for and dynamism of Marbella’s property market continues to grow.
- The article in Diario Sur can be read here.