Demand or Speculation, Bubble or Boom?

Though it was hard hit at the time, people have long since stopped talking about crises on the Costa del Sol. Tourism has been booming for some time now, and the property and construction sectors are also well and truly back on top.

New-build projects are growing steadily, bolstered by solid demand for both modern and resale properties, but in spite of this we’re still well behind the 2007 highs and boom/bubble years.

As a result, there has been a great acceleration of new project start-ups in recent years to satisfy the strong demand for Marbella villas and apartments featuring the angular white geometry of modern architecture, as well as open-plan interiors and high-tech features such as home automation systems and climate control.

Buyers are therefore in a strong position when looking for existing homes, which still tend to offer more space and ‘home’ for your euro but often require updating, while the new-build and especially off-plan markets are strong – too strong, say some.

Where next?

But, is this, and the rapid increase in property prices in this segment evidence of a bubble? And also, are the more than 100 projects under construction, on the drawing boards or nearing completion in our region proof that supply has caught up with demand and may overtake it?

Based on our information on the ground, this current growth cycle does not look or feel like the pre-bust bubble of 2006-2008. Sales volumes, price increases, speculation and even construction levels are still well below that danger mark, and most of the projects are considerably smaller – more boutique – than before, ensuring that we need not worry about a big bursting of the bubble.

However, investors and developers alike would be well-advised to start exercising some caution, as the focus in new development should shift increasingly to quality smaller projects, and be wary of signs of over-supply. If new development is well managed in this way, the current market should be able to sustain solid growth for some time to come.

 

Adam Neale | December, 2018



New
Development
Sotogrande, Off plan first-floor luxury apartment for sale in the exclusive community of Village Verde, next to La Reserva Club Sotogrande

Off plan first-floor luxury apartment for sale in the exclusive community of Village Verde, next to La Reserva Club Sotogrande

Ref. TMNA1304

  • 2 beds
  • 2 baths
  • 181 m² built
  • 65 m² terrace

Village Verde is nestled within an 18-hectare site of wooded parkland and is a much sought after development of apartments, penthouses and townhouses. This contemporary first-floor apartment is luxuriously...

490,000 €
New
Development
Sotogrande, Off plan luxury penthouse for sale in the ultra-exclusive community of Village Verde, adjacent to La Reserva Club Sotogrande

Off plan luxury penthouse for sale in the ultra-exclusive community of Village Verde, adjacent to La Reserva Club Sotogrande

Ref. TMNA1317

  • 4 beds
  • 4 baths
  • 524 m² built
  • 204 m² terrace

Village Verde is nestled within 18-hectares of wooded parkland and is a desirable community of apartments, penthouses and townhouses. This contemporary penthouse is luxuriously appointed with a spacious...

1,080,000 €
New
Development
Sotogrande, Off plan luxury ground floor apartment for sale in the tranquil community of Village Verde, next to La Reserva Club Sotogrande

Off plan luxury ground floor apartment for sale in the tranquil community of Village Verde, next to La Reserva Club Sotogrande

Ref. TMNA1324

  • 3 beds
  • 3 baths
  • 288 m² built
  • 123 m² terrace

Village Verde is a gated residential enclave within 18-hectares of wooded parkland and features apartments, penthouses and townhouses. This contemporary ground floor property is luxuriously appointed with a...

640,000 €
New Listing Estepona, Elegant 2 bedroom duplex penthouse for sale in the prestigious beachfront development of Costalita, New Golden Mile, Estepona

Elegant 2 bedroom duplex penthouse for sale in the prestigious beachfront development of Costalita, New Golden Mile, Estepona

Ref. TMXA1023

  • 2 beds
  • 2 baths
  • 102 m² built

Located in the gated and secure complex of Costalita and a short stroll from the beach, this stylish and low maintenance duplex penthouse has been upgraded to the highest standards with no detail overlooked....

399,000 €
Reduced Nueva Andalucia, Stunning 2017 new construction architectural villa for sale in Los Olivos, Nueva Andalucia, Marbella

Stunning 2017 new construction architectural villa for sale in Los Olivos, Nueva Andalucia, Marbella

Ref. TMXV08163

  • 5 beds
  • 5 baths
  • 660 m² built
  • 1.350 m² plot

Situated in the upscale development of Los Olivos in Nueva Andalucia, this elegant yet sleek home is designed to reflect the artistic and architectural combination of great taste, luxury finishes, and...

2,250,000 € - Reduced from 2,425,000 €
New Listing Benahavis, 2 bedroom apartment for sale in superb condition with garage and storage room in Las Mozas, Benahavis

2 bedroom apartment for sale in superb condition with garage and storage room in Las Mozas, Benahavis

Ref. TMRA11396

  • 2 beds
  • 2 baths

This very well presented apartment is positioned in the community of las Mozas, walking distance to the village of Benahavis and all amenities. The complex is situated at the entrance of Benahavis town...

279,500 €
New Listing Estepona, Sophisticated duplex penthouse with private pool in the exclusive beachfront complex of Los Granados del Mar, Estepona

Sophisticated duplex penthouse with private pool in the exclusive beachfront complex of Los Granados del Mar, Estepona

Ref. TMXA1116

  • 4 beds
  • 4 baths
  • 380 m² built
  • 173 m² terrace

This light, bright, and spacious duplex penthouse just footsteps from the sand boasts contemporary finishes throughout for the ultimate in modern luxury living. The property is well-distributed featuring a...

1,950,000 €
New Listing Marbella Golden Mile, Plot with sea views and project and license in progress for sale in the highly desirable Las Lomas del Marbella Club, Marbella Golden Mile

Plot with sea views and project and license in progress for sale in the highly desirable Las Lomas del Marbella Club, Marbella Golden Mile

Ref. TMXP0705

  • 1.034 m² plot

Located on the prestigious Marbella Golden Mile, this is one of the last remaining large residential plots available in the coveted pocket of Las Lomas del Marbella Club and represents excellent value. The...

1,300,000 €
New Listing Marbella Golden Mile, Plot with sea views and plans and permits in progress for sale in the highly sought after Las Lomas del Marbella Club, Marbella Golden Mile

Plot with sea views and plans and permits in progress for sale in the highly sought after Las Lomas del Marbella Club, Marbella Golden Mile

Ref. TMXP0706

  • 1.018 m² plot

Situated on the ultra-prestigious Marbella Golden Mile, one of the last remaining buildable plots has become available in the coveted pocket of Las Lomas del Marbella Club and represents fantastic value. The...

1,300,000 €
New Listing Estepona, Plot for sale in Estepona old town less than a minute from the beach

Plot for sale in Estepona old town less than a minute from the beach

Ref. TMRP1125

  • 242 m² built
  • 145 m² plot

A superb plot in one of the best locations in the old town centre of Estepona, positioned close to the beach and situated in the heart of the centre. The plot offers the opportunity for a very large...

350,000 €