However, in the medium term, one of the many effects of the Euro will be an equalling out of price differentials. This indicates that prices will undoubtedly rise over the medium term, especially in the better, more fully developed and mature residential areas. And also, one must remember that prices have only surpassed the 1989 highs in the last couple of years, which leaves plenty of room for upward movement in the years to come. When one is unable to reproduce a property, or a property is unique in position, design and finishes, its value disconnects with reproduction cost factors and can rise quickly if market demand is strong. There is a consensus among property professionals that the market highs are still several years away, and those who have waited until now to purchase a second or retirement home in Marbella should move with confidence, but with prudence - carefully checking out real estate values through comparable sales.
Nobody has a crystal ball.
It took over thirty-five years for Marbella to enter into its own, and have the infrastructure, public and private services, sporting facilities, and a reputation for quality that it now enjoys. These massive investments, with or without Gil in the future, are betting on a continuing positive evolution of the Municipality. Once a trend is fully established, it is not broken overnight. There will be a continuing move of businesses and shops out of the City itself, due to congestion and parking problems inside the city. This problem has been experienced for the last fifty years in growing cities throughout the world, and Marbella is certainly no exception.