Having weathered the initial shock effect of the unexpected Brexit result in the British referendum of 23rd June 2016 – when 52% voted to leave the European Union – the Marbella property market bounced back very strongly in 2017.
This meant that the initial drop in British enquiries was more than compensated by the very strong demand among especially Scandinavian and Belgian, but also French, Dutch and Middle Eastern homebuyers.
Additionally, the British market also recovered, and people from the UK remain the largest single source of buyers on the Costa del Sol.
This process has continued throughout 2018, and once again international ‘scares’ such as the so-called trade war between the USA and China, as well as issues in Russia, the Ukraine, the Middle East and the renewed US sanctions on Iran, have failed to impact significantly on this region’s real estate market and economy.
In fact, it only highlights how privileged and pleasant this part of Europe is, and is further bolstered by the overall health of European and many international economies during this year.
For this reason, in Marbella we have long since stopped talking about the financial crisis and the subsequent recovery, but are now in a solid growth cycle in its own right.
The fact that this is not a boom such as the one seen before 2008 is shown in the overall balance between buyers and sellers, where in the past the crisis years produced a classic ‘buyer’s market’ that was preceded by the ‘seller’s market’ of the boom years.
The result is the lack of a property bubble, and this again is born out by the movement of property values on the Costa del Sol.
Sustainable growth levels for Marbella property
The latter suggest sustainable levels of growth, as increases in property prices are solid but reasonable, and in no danger of overheating and turning into a property bubble now.
Moreover, the buying public is geographically diverse and well-spread, making the property market in Marbella more resilient. The market did see a two-month drop in activity in the wake of the final stages of pre-Brexit negotiations, but such monthly fluctuations are not unusual and transaction levels have returned to normal.
With an excellent choice and indeed range of new properties reaching the market in different areas of the coast, extending from Estepona to Mijas Costa, the Costa del Sol property market looks healthy and sustainable at this point, with price levels that remain highly competitive in comparison with most of Europe and reasonably good economic forecasts for 2019.
With this and the inimitable Marbella quality of life in mind, it is with confidence that we look to the new year, where we think the market will further consolidate itself, making this a good time to look at the Costa del Sol.