Costa del Sol’s Luxury Property Sector Calls for Urgent Infrastructure Investment – Luxury Real Estate Demand
The high-end property sector in Costa del Sol is urging authorities to invest in infrastructure to ensure water supply. This comes amid concerns that the ongoing drought in southern Spain could impact sales and rentals. The DOM3 business group, comprising nearly 40 luxury villa companies, has initiated a petition to the public authorities to develop a plan to mitigate the issue.
DOM3 Advocates for Responsible Water Use
DOM3 emphasizes that its members are committed to responsible water use in their operations. However, they stress that public administrations must also play their part in creating necessary infrastructures. DOM3’s president, Charly Simon, stated that waiting for rain is not a solution to a long-term problem.
Drought Not Yet Impacting Luxury Housing Market
Despite the drought, the luxury housing market, largely made up of foreign owners of second or third homes on the Costa del Sol, has not been affected. DOM3 insists that administrations must continue to enhance existing infrastructures and create new ones to sustain the tourism industry and generate wealth in the region.
Concerns Over Water Shortage Impacting Sales and Rentals
The high-end sector fears that the water shortage could impact sales and rentals if not addressed. A Marbella property administrator noted that their clientele, who pay premium prices for villas, expect access to water at all times. This issue extends beyond residential tourism and property rentals.
High-End Hotels Express Concern Over Water Shortage
High-end hotels have also expressed their concerns over the water shortage. Ignacio Gómez-Escolar, director of Hard Rock Hotel Marbella, fears that they may be prohibited from filling their swimming pools for the summer. This could lead to cancellations from tour operators, particularly from the UK, their largest market.
Public-Private Consortium Proposed to Address Water Shortage
The luxury sector, a significant contributor to the wealth of Marbella, Estepona, and Benahavís, has a direct impact on the local economy. Bernard Fay, CEO of UHY Fay and Cou, proposed the creation of a public-private consortium at the annual Study and Evolution of the Market conference. The consortium would involve companies and public administrations in creating a strategic plan to address the water shortage and other infrastructure issues.
