Many may be aware of Marbella’s reputation as the St.Tropez of southern Spain. As well as its old-world charm (Moorish architecture and narrow, cobbled streets), the city is also a magnet for the world’s rich and famous.
Boasting golden beaches, glamorous restaurants and rows of super yachts docked around its harbours. As previously reported, millions have been poured into the area’s infrastructure (including €400m into the new port Al-Thani at La Bajadilla). Such luxury forms a stark contrast to the wider fortunes of Spain’s finances, however.
Optimism for the country’s economy remains cautious (its GDP increased for the first time since 2011 during the third financial quarter, though only by 0.1 per cent). Eyebrows were raised recently though when Microsoft founder Bill Gates invested $155m in Spanish construction giant FCC (Fomento de Construcciones & Contratas).
Returns in the short to medium-term future may look risky in Spain’s current market. However, as someone with a multi-billion dollar portfolio, perhaps investors should look to the philanthropist for inspiration.
Particularly in the Costa del Sol there is some real value in the market, with Real Capital Solutions – Spain (“RCS”) leading the way by way of development. The American Investment Fund launched 53 beachfront apartments to the Marbella property sales market this November. This is just the first property release from the fund that intends to invest a significant amount of capital into the Costa del Sol property market over the next 10 years.
There are a number of new RCS Spain property development releases set for the next few months. Come New Year 2014, RCS – Spain is expected to be the biggest provider of real estate in Southern Spain across the international market. With a distinguished track record of purchasing distressed properties and turning them around, it is expected that this influx of investment will reap great awards for the Spanish economy. CEO, Marcel Arsenault, states, “We have a strong understanding that most problems in the real estate business are solved with expertise, not just money.”
Source: A Place in The Sun