Luxury Property Market in ‘Golden Triangle’ Predicts Sales Surge Despite Market Downturn
Despite the overall downward trend in the property market, high-end property entrepreneurs in the ‘Golden Triangle’ (Marbella, Estepona and Benahavís) are predicting a rise in sales of luxury properties in the latter half of 2024. This optimistic forecast was one of the key takeaways from the latest round table event by DOM3, an association of entrepreneurs and professionals in the luxury housing sector. They attribute this growth to the surge in luxury home sales, which has established the Costa del Sol as a top-tier residential destination globally.
The Golden Triangle: A Beacon Amidst National Property Market Slump
The positive outlook for the Golden Triangle starkly contrasts with the national property market, which saw a 19.3% drop in sales in March, according to Spain’s national statistics institute (INE). The situation is even more dire in Malaga province, with a 27.8% fall. However, the Golden Triangle is not only bucking this trend but also witnessing demand outstripping supply in certain areas.
The Lure of the Golden Triangle
The association members believe that a robust legal framework for the property market, affordable prices, and over 300 days of sunshine annually are the key attractions for wealthy overseas investors looking to invest in the high-quality housing market on the Costa del Sol.
Challenges Ahead for the Costa del Sol
The latest DOM3 round table, chaired by its president, Charly Simon, identified three major challenges that the Costa del Sol must tackle to maintain its growth rate and stay ahead of the national average: improvements to local infrastructure, water supply, and public safety. José Luis Rodríguez from Ros Legal stressed the need for the three town halls (Marbella, Estepona and Benahavís) to unite and demand improvements from the relevant authorities.
The Costa del Sol: A Destination Under Threat
The Costa del Sol, which welcomed over 14 million visitors last year, is a globally recognized residential destination. However, issues such as drought, road network collapse, traffic congestion, and public safety concerns could potentially deter visitors if not addressed promptly. DOM3 is urging public administrations to be proactive in tackling these issues.
The Future of the Luxury Property Market
According to DOM3 entrepreneurs, many high-end housing market customers are investing in gated communities with private services to compensate for the lack of public infrastructure. They predict that the sector will continue to see steady sales growth in the coming months, but caution that factors such as a shortage of experienced professionals and a lack of new housing stock need to be considered.
