The evidence seen by FM Consulting of growing investor interest in Marbella real estate projects has been backed up by reports recently released by international organisations.
While they deal with sentiment at a national level, there is no doubt that the research is highly applicable to the construction and real estate industries in Marbella and the Costa del Sol, which have been leading the country-wide sector on an upward trend for several years now.
This trend looks set to continue through 2016, with a report from Jones Lang LaSalle (JLL), in collaboration with global business school IESE, stating that nine out of ten large investors have given entry into the Spanish real estate market a ‘high’ or ‘very high’ priority. While the majority were considering commercial or tourism property, some 38% were searching for opportunities in the
residential sector. For the construction industry, what is particularly interesting was that 31% of these investors were looking to buy land, indicating a desire to develop real estate projects—a pattern mirrored by what FM Consulting has seen on the Costa del Sol. The survey focused on 100 substantial players in the field—47% of them controlling investment funds of €100 million or more.
The JLL survey followed closely on the heels of the Global Investor Intentions 2016 report released by international property consultants CBRE, which revealed that Spain ranks third in Europe behind Germany and the UK as a principal target for real estate investments from the international property sector.
Marbella and the Costa del Sol have retained their position as leading destinations for major investment projects, with a €200 million hotel and luxury villa scheme announced for a seafront plot at Las Chapas, as well as further projects at Sotogrande and Marbella worth hundreds of millions of Euros recently announced.
Despite initial uncertainty, it would appear the Supreme Court decision to annul Marbella’s 2010 PGOU (General Plan) has done nothing to dent investor confidence in the town, as we reported in a previous blog. FM Consulting has been receiving enquiries on an almost daily basis from leading investors in both Spain and abroad looking for opportunities to participate in development projects.
As leading real estate specialists offering integrated project development, resort management and property sales services, we view prospects for the industry during the remainder of 2016 and over the next few years as being highly favourable. Marbella and the Costa del Sol proved to be resilient in the face of the economic downturn and have further shown to be at the forefront of the recovery during the past few years—something that is set to continue as the region entrenches its position as a highly desirable destination for an international client base.