Infrastructure, security, and water supply: the major challenges for the golden triangle to continue growing above the national average

DOM3 calls on local councils to join forces to demand improvements from the competent administrations.

Nationwide home sales have fallen by 19.3% in March, and in the province of Málaga, the decrease was even greater, reaching 27.8%, according to data from the National Institute of Statistics. However, the golden triangle (Marbella, Estepona, and Benahavís) not only escapes this trend but in some specific areas, demand even exceeds the available supply.

This scenario, with expectations of continued growth during the second half of the year, is due to the boom in high-quality housing that has positioned the Costa del Sol as one of the most coveted premium residential destinations in the world. This is contributing to improving the figures of a sector that has already become the main economic driver of the region.

Legal certainty, affordable prices, and favorable weather with more than 300 days of sunshine per year are the three main attractions for large international fortunes deciding to invest in the high-quality housing market on the Costa del Sol.

These were some of the conclusions of the Association of Businesspeople for High-Quality Housing DOM3 at their latest roundtable, a debate moderated by the president, Charly Simon. Manuel Burgos of MB Architects, José Luis Rodríguez of Ros Legal, Ness Yammine of Aalto Exclusive Design, and Jesús Sánchez of Jamena Construcciones discussed topics such as safety, infrastructure, growth forecasts, and the rise of branded residences. “Marbella is a bubble within a bubble; there's no place like it in Europe, but this needs to be managed carefully—we cannot die from our own success,” warned Jesús Sánchez.

Joining forces to demand solutions

In this context, the entrepreneurs pointed out three major challenges that the Costa del Sol must address to continue growing at the same pace and above the national average: improving infrastructure, water supply, and public safety. “The three city councils (Marbella, Estepona, and Benahavís) must agree and join forces to demand improvements from the competent administrations,” noted José Luis Rodríguez, emphasizing the high tax revenue generated by this sector in public coffers through property tax (IBI) and building permits.

Architect Manuel Burgos referred to clients' perceptions: “They start analyzing Marbella from the moment they leave the airport, and sometimes the cleanliness is not the best, I have already received some comments in this regard. As for the infrastructure, we are already late, the City Council must take measures,” he commented.

The Costa del Sol is an internationally known residential destination, last year it received more than 14 million visitors, however, problems such as drought, traffic collapse especially in high season, or the increase in news related to public insecurity could weigh down this figure if necessary, measures are not taken. A matter that DOM3 tries to prevent by claiming "proactivity" from public administrations.

“Marbella offers more than 300 days of sunshine a year, it's a unique place in the world, but nevertheless crimes and thefts have increased in the last five years and action must be taken now. With the drought, they waited until there was no water left, it's time for the authorities to be proactive,” stressed Ness Yammine.

The rise of gated communities

As highlighted by the entrepreneurs, many clients in the high-quality housing market are opting to invest in gated residential communities with private services to compensate for the lack of public infrastructure. “Developments with their own roads, private security, and exclusive services for owners are having a lot of success,” assured Manuel Burgos.

Regarding growth forecasts, DOM3 estimates that the sector will continue to increase its figures at the same rate over the next few months, but some important aspects must be considered, such as the lack of professionals and the absence of stock of new finished housing in specific areas like La Zagaleta, where currently the demand exceeds the supply.

“There are no human resources, we have technical team shortages, staff cannot find affordable housing, they have nowhere to live and this is another problem that we must take into account,” warned the director of Jamena Construcciones.

The trend of branded residences

The speakers also analyzed the paradigm shift the sector is experiencing, with increasingly younger clients and a significant increase in properties ranging between 7 and 10 million euros, as well as those exceeding 20 million euros.

Another topic analyzed at the DOM3 debate table was branded residences, under the title “Exclusivity and prestige. Exploring the world of branded residences,” the experts debated the marketing strategies of the big brands behind the projects being built in the area.

Some entrepreneurs see these projects as a passing trend, while others talk about a change of model to meet the needs of younger clients and ensure that they position Marbella at the level of major cities like Miami and New York.

DOM3 will hold the last meeting of the season on Tuesday, June 18, an occasion that will serve to review the activity developed in these months and to take the pulse of the sector at the start of the busiest time on the Costa del Sol. The association brings together about 40 companies related to the different business lines of high-quality housing that provide direct, high-quality, and highly qualified employment to about 2,500 people.