Costa del Sol: besides being an ideal place to buy real estate

Friday, March 3, 2023, 12:46 pm. Málaga, and especially the Costa del Sol, has become the province with the highest density of real estate per thousand people in Spain. This was announced at a round table organized by SUR in English in collaboration with Marbella City Hall at the Don Pepe Gran Meliá Hotel on Thursday, February 23. Marbella Mayor Ángeles Muñoz gave a welcome speech, after which five experts from the real estate sector discussed a wide range of issues, from what has made the Costa del Sol a popular destination for tourists and investors for over 50 years, to sustainable housing, the impact of the war in Ukraine and the cost of living crisis. Vanessa Davila, executive director of listings and marketing at a Spanish real estate agency; Juan Goni Uriarte, CEO of Klic Arquitectos; Felix Romero, first deputy mayor of Marbella; Mark Damian Elliott de Lama, owner and founder of Fluent Finance Abroad; and Setareh Moregi, director of Gilmar's international division, brought their experience and expertise to the debate.

Muñoz also spoke about the impact of the Covid pandemic on the city, which went unnoticed by the participants in the debate, who noticed that Marbella and the Costa del Sol in general are attracting more and more people from other regions of Spain and abroad who can work remotely and choose this place to live.

In addition to the always attractive attractions such as guaranteed sunshine, beautiful beaches and first-class gastronomy, the panelists emphasized important aspects such as security and infrastructure. Setareh Moregi pointed to the "exceptional offer of international schools" as an important factor for families thinking of moving here, while Mark Elliot pointed out that the Costa del Sol attracts "the younger generation, 35-year-old professionals coming to work in the technology park in Malaga and looking to buy property in Marbella". Continuing the debate on attracting a young audience to Málaga and the Costa del Sol, Felix Romero spoke about a recent law designed to attract so-called digital nomads to the country.

The debate turned to hotspots for investors from different countries and whether there has been a change in the type and nationality of buyers in recent years. This issue is closely linked to Brexit and its impact on British investment on the Costa del Sol. Setareh Moregi pointed out that while Brits continue to buyreal estate, they are also feeling the effects of Brexit and the cost of living crisis back home. However, according to Mark Elliott, there has been an increase in interest from people from Scandinavian countries, as well as an increase in the number of investors from the US, stimulated by the strong dollar against the euro.

Moregi also mentioned the 90-day visa rule for Britons spending time in EU countries that was introduced after Brexit, but noted that many British property owners stranded by the rule find ways to share their Spanish homes with family or rent them out when they can't travel to the country.

Responding to the mayor's comment that 2022 was a "record year", the debaters shared their opinion that last year was a return to normality for the real estate sector. Felix Romero emphasized that thanks to the weather, the luxury real estate market and lifestyle, "Marbella came out of the pandemic even stronger." He also noted that last year set "records such as the number of companies registered, the reduction in unemployment and the increase in tourism figures, as well as digital initiatives", which he said all contribute to the city's popularity as a tourist destination. Setareh Moregi confirmed the mayor's words with statistics from Spain's national statistical institute (INE). She pointed out that according to INE data, the number of residential properties sold in Spain in 2022 increased by 14.7 percent compared to 2021, and in the province of Malaga alone, 26 percent more properties were sold in 2022 than in 2021.

Davila also added: "Since the pandemic, some people are realizing that they don't want to share common spaces like the lobby or elevator in hotels, so they are investing the money they used to spend on hotel accommodation into buying real estate."

As for the so-called "golden triangle of Marbella, Estepona and Benahavis" that Moregie referred to, the latter is particularly sought after because of its small size, giving people the space they need. Juan Goni of Klic Arquitectos also agreed that last year was "the best year on the Costa del Sol as far as I can remember". Felix Romero emphasized: "People can work and play golf, we have good hospitals and warm weather. We have to take advantage of this opportunity." However, in the financial sector, Mark Elliott pointed out that "the situation is far from normal" at the moment. "Last year at this time inflation was at historically low levels. Now inflation is high," he said. However, he emphasized that "inflation is projected to start falling by the end of the year. Spain is holding inflation down, even though it is now at a high level."

Juan Goni observed that industrial inflation is now "higher than general inflation" and the construction sector is facing a 30 percent increase in the cost of building materials as well as labor shortages. He added that land prices are also rising. Mark Elliot reiterated the importance of security in Spain, saying that "Spain is a very safe country to live in and we are far away from the conflict in Ukraine. People feel safe here."

Felix Romero emphasized the importance of the PGOM and the SHEET to provide investors with greater "legal certainty." He said: "We are confident that the plan will attract important investments to the city" and will "offer guarantees".

The debaters agreed that much has been done in the last 15 years to create more sustainable housing, and Felix Romero noted the environmental aspects of the GHGM. Setareh Moregi said that she came to the symposium to be positive and the debaters agreed with her that there are many reasons to be optimistic about real estate and foreign investment on the Costa del Sol.