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Marbella Mayor’s Promised Improvements to Make Property Investment in Spain More Attractive - 11 May 2010

To further boost investment interest and tourism in Marbella, Spain, the mayor is improving the Spanish coastal city’s infrastructure and introducing new rules for purchasing property.

Mayor Angeles Munoz wants to “establish the character of Marbella as an important European city,” she said in a recent announcement. Under the General Plan of Marbella, which is expected to be approved later this year, buyers will not be responsible for developers’ misrepresentations or the failings of prior Municipal governments.

The City Council has also developed the Think Tank Advisory Group, which hopes to advance Marbella’s economic development and integrate its international business sector. The group currently includes Center for Tourist Initiatives, the British Chambers of Commerce and German-American Club and Dutch Business Club.

José Luis Hernandez, Councilor for Tourism, says the first order on the group’s agenda is to bring together the business community and the 137 nationalities residing in Marbella. He plans to set up networking initiatives, like golf tournaments, to unite professionals living in the area as well as lure potential investors.

Although Marbella is known as a premiere holiday destination, the city wasn’t immune to the massive hit suffered by Spain during the recent recession. The Bank of Bilbao Vizcaya Argentaria estimates that at the end of 2008, between 800,000 and 1,400,000 newly built homes went unsold in Spain, including an estimated 24,000 living units on the Costa del Sol.

In Marbella, the least expensive homes (under €700,000) were affected the worst, with prices dropping 20 percent to 40 percent. The most expensive properties (up to €3.000.000) suffered a lesser drop of 15 to 20 percent.

Viewings were also down 25 percent last year, whereas Internet searches were on the rise. Experts believe this signifies that serious investors will now make a move on their property interests with the economy on the mend.

As a matter of fact, sales in Marbella have already seen a 200 percent increase in the first three months of 2010 over the same time last year. Experts predict that demand will only increase, as Spain remains the top search on many property investment sites.

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