Gone are the days when the Marbella property market was red hot and the streets were paved with gold . People from the UK, Ireland, Germany, Holland and other parts of Europe were rushing over in their droves to claim their piece of the Spanish property boom. Now many of the real estate companies have either downsized or disappeared and many of the sales people have moved on to sell property in Bulgaria, Dubai, Cyprus etc. So what does the future hold for the Costa del Sol property market?

Most people agree that a market correction was inevitable, the property market simply could not sustain that level of growth and price rises forever.  There was a massive upward cost spiral as land changed hands many times driving property prices up. Property investors were buying offplan and selling before completion. In some case off plan properties changed hands several times before completion.

As prices reached a natural plateau holiday apartments and villas were no longer 'cheap' second homes. In fact in a lot of cases apartments on the Costa del Sol and particularly in the Marbella region cost as much as peoples properties back home. 

We believe that the long term outlook is good for the following reasons. Firstly the Costa del Sol has a well developed infrastructure, flights are in abundence and relatively cheap. There are a great many nationailities living here in harmony giving Marbella and the Costa del Sol a real multi cultural feel.

In the past there may have been a tendency to think that the Costa del Sol was only the destination of choice for gangsters on the run, bucket and spade tourists or for the retired. The Costa del Sol is still very popular for retirement and as a tourist destination although holidays in Spain are no longer 'cheap' since the arrival of the Euro in 2002. With technology being what it is many younger people and couples are leaving their countries in search of sun, adventure and a better way of life. The internet, voip, mobile phones and email makes it easy for people to run their businesses or carry out their work while sitting on their sunny terraces.

The Andalucian government is spending money on technology and new business initiatives and this is much needed. In order for Marbella / the Costa del Sol to prosper again a strong and sustainable local economy is needed. People need to be able to find decent well paying jobs and there have to be alternatives to timeshare, real estate or working behind a bar.

The word on the street is that an upturn in the economy is still a year or two away. A stronger local economy and better employment prospects should attract more people and money to Marbella thus having a positive impact on the local property market. One thing is for sure, as long as the sun continues to shine on Marbella, there is nothing to worry about.

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