At the beginning of November the Supreme Court overturned Marbella’s 2010 Town Plan which re-categorised land and worked out a compensation system in order to legalise 16,500 homes. This means that the 1986 plan is now in effect, with 18,000 illegal properties in the Marbella area, and property owners, purchasers and developers are concerned about what the future holds.
The Mayor of Marbella and the Junta de Andalucia have met to discuss how to solve the issue and show unity in the face of this crisis and promised to put temporary plans in place within six months, to ensure that construction and property sales do not stop whilst a new plan is created. The new plan is expected to be completed by the end of 2018, a long period of uncertainty for all involved in the Marbella property market. The council are seeking clarification of the annulation of the plan, particularly in regard to demolition orders for illegal properties and the Supreme Court’s views on the compensation system that the 2010 PGOU proposed. They are aiming to put together a new plan which Mayor of Marbella José Bernal says “has to definitively resolve the town planning corruption seen for 30 years”. Find out more
There will be nearly three years of limbo for owners of illegal properties in the Marbella region (from San Pedro to Cabopino) and it is expected to also effect owners of legal properties in the same area, due to fears of further changes and revisions making buyers nervous, and likely to boost sales in other parts of the Costa del Sol without these issues. The best course of action would be to wait and see what the temporary plan says before putting your property on the market, as the news will certainly push prices down. The market is recovering and is expected to continue to rise slowly but steadily over the coming years, so why not hang on to the property whilst the new plan is created and demand increases and then capitalise on demand and interest in 2019? Your property will certainly be worth more by then, and over the next few years you can rent out your property short or long term, generate income to cover costs and more whilst waiting for a resolution and improving market conditions.
Renting your property can be highly profitable and we expect this news to create yet more demand in the long term rental market, where there is already more demand than supply which is pushing monthly rental rates up. Long term rentals are a low effort, secure way to rent out your property, if you don’t want to use the property yourself. If you like to use the property for holidays, especially in the low season, then renting your property for the peak months of April to September is very attractive. You can expect to get the same for one week rental in high season as one month long term rental, so it’s really profitable, however there is more marketing and management required.
HomeCareontheWeb are Costa del Sol property management and rental specialists with powerful marketing throughout Europe to attract long term and short term clients, secure and easy booking systems, customer service professionals and a team of cleaners, maintenance personnel and support staff to manage all aspects of rentals, without any hassle for you. With HomeCareontheWeb there to support you there’s no need to worry, simply sit back and wait for the rental fees to start coming in whilst you bide your time and see what the new PGOU will mean for you. Get a quote or contact us today