Although the property market as a whole is faltering it seems that Russian and Arab investors are keeping the market afloat purchasing homes between 4 million and 10 million euros.
There has traditionally been a good deal of investment from the Russian market here on the Costa del Sol and 2011 has continued this trend with many Russians purchasing multiple high-end properties.
The Costa del Sol has recently received members of the Qatari royal family and other dignitaries from the Arab Gulf creating rumours of massive investment in multiple development plans. The visit have gone the other way too with Angeles Muñoz, Mayor of Marbella, recently visiting Qatar, Abu Dhabi, Dubai and Kuwait.
President of the Andalucian Developers and Residential Tourism Federation, Ricardo Arranz, explained that there is high interest in the Costa del Sol from the Russian and Arab markets. Investment from the Chinese is also on the rise.
Arranz went on to say that the banks are currently selling properties with large discounts, up to 50%, mainly on the coast between Marbella and Estepona. He also added “the only positive thing about legal scandals such as the ‘Malaya’ and ‘Ballena Blanca’ cases is that available houses are becoming scarce in Marbella and more need to be built, which will create employment”.
I’m not sure I agree with that though. There are thousands of empty properties here on the coast. It may be an idea to create a census of these wasted spaces and start housing people in need. The Costa del Sol is already over-developed. There is no need for more housing along the coast. The development I live in is only 40% occupied and that is not unique. Make use of existing property before you build any more!