Marbella property market comeback?

The new mayor – like much of the town’s population, according to recent polls – hopes demolition will not occur. “I do not believe that demolitions are an appropriate solution for Marbella, and I will do everything in my power to protect the interests of innocent buyers,” she says. “We will appeal against demolition orders.”

At best, however, that will leave some owners, such as those at Banana Beach, in legal limbo. Given the length of the dispute about the legality of such developments, some of the affected owners would prefer swift demolition and a compensation package.

“I haven’t been able to get a straight answer from anyone in five years, and this looks set to drag on,” says Russell Ellis, 63, a pensioner from Sidmouth, in Devon, who in 2002 spent €189,000 on a two-bedroom flat on Banana Beach. “I would prefer a decision tomorrow – even a bad one – so we can move on. But I’m not holding my breath.”

To some in the property industry, the unlucky owners in the Banana Beach complex are scapegoats. “What will happen in cases where the developer can’t, or won’t, compensate the town hall?” asks Morales. She fears that the solution will only spark more confusion, although she does admit that July was “an excellent month for the local market”.

There are voices of optimism in some quarters. “The worst is definitely behind us,” says Desmond O’Connor, head of Alanda Homes, a blue-chip developer and the Spanish division of McInerney plc, Ireland’s largest home-builder.

Michael Hornung, director of Marbella Club Real Estate, the property division of the exclusive club, also feels that the town is about to turn the corner. “Wealthy buyers are coming back,” he says. “They know Marbella is cleaning up its act.” Building work slowed during the corruption investigation, but John Fleetham, 47, a developer from Sheffield, has since invested £1m in three plots, with planning permission, in the upmarket Sierra Blanca urbanisation. “I believe Marbella will bounce back,” he says. “If you have made any money in the UK, this is where you want to be. This place is aspirational.”

Muñoz, meanwhile, plays up plans for a new terminal and runway at Malaga airport, and, eventually, a high-speed train link to Marbella, which will boost visitor numbers.

James Hewitt, 49, the former lover of the late Princess Diana, is one newcomer who couldn’t be more enthusiastic. He arrived here a year ago, with plans to establish a bar-restaurant, and is renting a flat while he gets the business off the ground. “Whatever the recent problems, the quality of life here is unbeatable, and that will always attract people,” he says. “My quality of life here is three times better than it was in London, for about a quarter of the price. With the mild climate and outdoor lifestyle, I feel as if I’m living 600 days a year.”

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