Urban Plan of Marbella’s PGOU

Urban plan of Marbella’s PGOU

Marbella may be bouncing back but it’s important that buyers understand that the legality of thousands of homes in the region has been cast into doubt following a court ruling. That is why Costa Del Sol Property Group would like to fill you in on the situation.

Marbella Property will always be in demand

Looking at the Marbella beachfront and the Costa del Sol will tell you that it appears to be business as usual in the region. Some people are enjoying drinks in the “Chiringuitos”(beach bar) or on the boardwalk (Paseo) and others are enjoying sunbathing on the sand or, for the very rich, their superyachts. Boutiques and restaurants are opening up throughout the Marbella Old Town and new properties are being built on the beachfront. Even San Pedro, a village near Marbella, is coming to life. Local agents are saying that the demand for property, as well as the prices for that property, are on the up now that the main artery of the town has been re-landscaped and traffic is being directed through a tunnel instead.

The problems arose after a shock announcement made in November last year by the Madrid Supreme Court. They ruled that the 2010 PGOU of Marbella, the urban plan created six years ago to decide who could build what in Marbella for the next decade, was illegal. The 2010 plan was originally designed to fix the planning issues that were left behind following the decade of corruption from 1991 under Jesus Gil, the previous mayor of Marbella. The courts decided that it had been drawn together too hastily and that it ignored environmental and economic issues. The courts added that the plan didn’t take into account providing basic utilities to the rapidly growing Marbella. The PGOU was thrown out overnight and the old PGOU from 1986 was reinstated instead.

This has left many buyers, owners, and people interested in Marbella property unsure what happens next. One of the major concerns with throwing out the 2010 PGOU is that it was to legalised 16,500 properties built illegally under Gil on what is basically greenbelt land. Whether these properties are still legal or not has been cast into doubt once again and the owners of these properties will likely not know for sure what will happen until the new plans are put in place which could take another 4 or 5 years.

Another problem is whether the banks will lend on those properties while they have questionable legal status. Some bank managers will assess each property on a case by case basis for now.

One thing is for sure is that the demand to buy property in Marbella and the Costa del Sol will always be there and illegal properties will carry on being sold in Marbella and the surrounding areas.