The Costa del Sol real estate market is the fifth “most important” in Spain, situated in privileged positions both in terms of the purchase and sale of homes and in the signing of mortgages. And it is estimated that, in the short term, the good figures will continue “at least” in 2019 and 2020 with “sustained growth”.
This is how forceful the experts’ forecast is, but we are going to break down all the details of this statement; some aspects will have to be taken into account.
More than 200 new construction projects on the Costa del Sol and around 11,000 homes for sale.
Malaga, Marbella, Fuengirola, Mijas, Estepona and Benalmádena lead the transactions throughout the Andalusian coast. These expectations are reflected in the large number of residential projects that are being developped in the Malaga coastal market: there are more than 200 new construction projects on the Costa del Sol and around 11,000 homes for sale, which will be delivered in the coming years.
They are also reactivating works that had been paralysed after the crisis, as is the case of a promotion of 150 homes in Mijas and another 80 in Fuengirola. New developments have also been started in Mijas Golf, La Cala de Mijas and Benalmádena. In this area, with respect to the land, feasibility studies are being carried out and prices are being tested which are not fully translated into operations, so there is still a clear excess of land to develop and even already urbanised.
The large developments in towns such as Estepona, Fuengirola and Mijas are, in part, pushed by “the breaking” of new projects in Marbella, after the suspension of the General Urban Development Plan (PGOU) by the Supreme Court.
So who leads the projects? They are driven by promoters or foreign funds, and also by local companies with their own funds or associated with other investors. That is why the Costa del Sol real estate market is attractive to different investor profiles due to its infrastructure, good communications and consolidation over time, among other factors.
Banks are once again relying on the promotion, albeit prudently. For the first time in seven years, financial institutions are open to financing promotions provided that the land is put by the promoter and there is a good volume of pre-sales.
The international client very interested in buying on the Costa del Sol.
A very high percentage of buyers on the Costa del Sol are international. The Scandinavians (Swedes, Finns and Norwegians) have taken the lead and are leading the purchases of houses on the coast of Malaga. They are interested in both new construction and second-hand housing. This type of real estate is fundamental to the reactivation of the sector, because it provides attractive housing at a price level, there are less taxes and there is a lot more availability.