As the summer season comes to an end, Marbella Unique Properties decided to recall one of our feature interviews by the owners of our company created a year ago around this same time. We will point out thoughts and expectations on issues such as Brexit, 2017 real estate market forecast, the type of clientele that Marbella attracts and its variety of 5 star properties. Lucio and Yolanda were interviewed by Marbellas Television Production Company.
Presenter: Good evening everyone, today we are joined on the set by two people dedicated to Marbellas real estate market, they will explain how the sector works in conjunction with tourism and how together they this has formed the backbone of the Costa del Sols economy. We welcome Lucio González and Yolanda López, many thanks for coming.
Lucio & Yolanda: Good evening, thank you for having us.
P: Continuing our conversation we have pointed out that there are two key words that define the current real estate market, which are “Brexit” and the “General Urban Development Plan” (PGOU) recently having cancelled 2016 plan, therefore reverting back to the 1986 PGOU plan, for at least another 4 or 5 years. At the same time it also seems that having to revert to the 1986 plan has been beneficial for some.
L: Yes, it is true some have benefited from the paradox of the cancellation of the plan, it has left approx. 16,000 homes on stand-by but other people have certainly benefited.
P: And Brexit? Does it put us in a difficult position?
L: Well, Marbella is a very international city, our British friends adore us and we adore them, but it is true that it has slowed down Marbellas British market. It has left some people uncertain of what is going to happen and how the exit will evolve before deciding how to proceed with a sale.
P: How is your day to day after these events?
Y: Our day to day is pretty good. As Lucio mentioned it is true that the market has slowed down because with these two points as discussed and buyers are somewhat more cautious when it comes to investing. The situation is very positive and with respect to the past years of economic crisis we see that the market is moving and there are very serious investors who continue to choose Marbella.
P: As I was reading some reports previous to the interview there is one thing that I am curious about, the English were mentioned with regard to Brexit, but the Russian clients were not mentioned. What happened to them?
L: The Russians were the star clients during the economic crisis of 2008 and yet when the crisis ‘disappeared’ they also disappeared. Not literally of course, because they are still here, Marbella is a very Russian city, their presence is all around.
Y: Well, it is true that there were many Russian clients at one time, many investors who bought both as investment and as a permanent residence, but variation in their economy made them slow down a bit. Which has also made way to other markets, currently there are many Nordic, Belgian, Dutch, French customers … Clients who have always been in the background but not yet come to life.
L: One point that makes us very attractive for French or Belgian clients is to ‘escape’ from the taxation in their countries which is much higher than Spains.
P: The high quality luxury sector in Marbella doesn’t seem to be effected by the crisis.
Y: The crisis has affected everyone, although maybe not in the same way, the luxury market has a different economy and a different solvency. Marbella sells luxury very well, because that’s what we really have. We have privileged areas such as the Golden Mile, Puerto Banus, the Zagaleta, Sierra Blanca etc… where the price of properties doesn’t devalue as much because the land itself already holds a high price tag due to its privileged location.
P: I believe that we should point out another important factor and that is when a buyer purchases a property as an investment and not as a residence. Do you think that changes in trends in Marbella could cause a new market bubble?
L: Marbella has historically been city for second homes, but it is true that from the beginning of the crisis when properties fell in price and became more interesting, many investors looked to Marbella and reactivated the market.
Y: I think it has been beneficial, it has been a tough time and we are already recovering quite successfully and it has been great for regulating prices. We were in a housing bubble where prices were increasing to a point which was unrealistic, after the crisis prices stabilized and are became more interesting for an investor, the market is less volatile and offers a better profit return.
P: How was this summer in Marbella? What’s the market like at this time of the year?
L: Summer is a busy season too. The rental high season starts and although we work well in sales the season for luxury rentals is one of our greatest strengths. It is a very interesting time, it is a great source for client buyers who may not be active now, but will be in the near future.
Y: It is a very positive side to Marbella. Without going any further, this year (2016) Marbella is fully booked; we have an occupation of almost 100%. People still want to come and the hotels are full, the apartments and houses are also occupied.
P: You lived through the crisis of 2008. How did you see or do you see the market since then?
Y: Yes, we can say that we have gone through all the phases, and there have been times when we could see a complicated future ahead, but we have always been positive and it has worked out.
L: Marbella is a very attractive city for Europeans in particular, and it continued to be throughout the crisis. I believe that from 2013 to date we cannot talk about crisis, we can talk about a slower or faster pace, but neither in tourism nor in the real estate sector can we say crisis. We continue to discover new ways to work.
P: I want to thank you for having granted us this interview and your time.
Lucio & Yolanda: Delighted to come and thank you for inviting us.
After reading this interview and considering the ideas and predictions for the year 2017, Yolanda and Lucios answers were very close to what occurred. These facts confirm the experience acquired over 16 years in the local real estate market, and places Marbella Unique Properties as one of the best agencies to seek for advice. Do not hesitate to visit us.