The planning scandal in the Marbella Town Hall erupted in 2006 when it became clear that the planning laws, last revised in 1986, had been routinely ignored for years.  Building licences had been illegally granted in return for bribes, resulting in tens of thousands of properties facing demolition once the shambles was exposed.  The Town Council was dismissed and central government put in administrators until a new mayor was elected in 2007.  Since then the number one task has been to draw up new planning regulations, get them approved and start the process of rehabilitating Marbella's reputation as a 5* destination.

Finally, this week the new PGOU (Plan General de Ordenacion Urbana) or Urban Development Plan was approved at Marbella's Council Meeting and as a result about 17,000 properties will receive retrospective building licences and thus become legal.  The Plan also lays out how the Marbella area will develop over the next decade and beyond.  Nearly five million square metres of land have been designated as green zones, not available for development, and a further two million are being set aside for public amenities.  At last we will know what can be built and where and it is expected that the new regulations will come into force in October.

But the Town Hall has had to make a big concession.  The mayor, Angela Munoz, had stated publically several times that she would not countenance the demolition of any building that was already occupied, saying that purchasers, many from overseas, had bought in good faith and should not be penalised for the illegal activities of others.  The regional government in Seville, the Junta de Andalucia, did not agree and refused to ratify any plan if it included the legalisation of developments in areas classified as green zone in the new plan and months of stalemate ensued.  Seville wants these properties demolished, occupied or not, and this stance puts at risk about 1000 empty properties and 500 already occupied, among which are the infamous Banana Beach apartments which not only contravened the 1986 local laws but also the 1988 Ley de Costas (Coastal Law), which prohibits any construction within 100 metres of the high water mark.  Faced with further prolonged deadlock Munoz has given way.

Now that the plan has been agreed at local level it passes to Seville for ratification and once that has happened responsibility for finding a solution regarding the properties that are still illegal passes to the courts so some people may have to live with uncertainty for years.  But for everyone else it's very good news.  Best of all, buyers who have been deterred by the scandal can now go ahead and buy with confidence.