The Andalusian Mediterranean coast continues to show the greatest increases in price and general activity, especially the Costa del Sol, and, more specifically, Marbella and nearby locations. The promotion of new construction is intense in this area, which is a focus of attraction for foreign demand with a high average purchasing power.
30% of the homes that were bought last year in Malaga were acquired by foreigners.
Who buys what, where and for how much?
Nor Estates insight to the Costa del Sol’s real estate market.
Beachfront New development in Golden Mile REF: NE00259
The Málaga region tops sales in Costa del Sol
The Málaga region is the fifth “most important” real estate market in Spain, located in privileged positions both in terms of the sale of new developments and secondary market.
It is estimated that the positive figures and healthy growth will continue throughout 2019 and 2020.
Marbella and Mijas are among five coastal towns that sold the most homes on the whole Costa del Sol in 2018.
Luxury Villa in Nueva Andalucia REF: NEV0050
According to a report by Tinsa, the area between Marbella and Manilva (an area to the west of Marbella) and the one between Torremolinos and Mijas are the ones that currently have the highest rates of activity. Marbella is the third in the ranking with 4,077 sales and Mijas is the fourth with 3,047 sales. Estepona (2,515) and Benalmádena (2,372) also appear in prominent positions.
In terms of the increase in prices in the last 12 months, the Costa del Sol continues to stand out. Torremolinos stands third with 16.1% increase, Mijas fourth with 15.3%. Estepona, Fuengirola and Marbella also ranked well with 13.7%, 13%, and 10,02% respectively.
What developers offer
Property developers are once again showing their strong presence. Every year since 2013, they have been building more modern, more intelligent and more ecological homes. They often offer the latest technologies to meet the expectations of the current buyers that explore the coast.
The forecast for new build developments continues to look good. Developers offer various property options: apartments, bungalows, townhouses and villas. Because of the fierce competition and every-year-higher clients’ demands they offer attractive locations, distinctive architecture, healthy lifestyle concepts, impeccable quality and, of course, competitive prices.
New development in resort REF: NE00255
For the last years, the number of projects under construction has been growing steadily. For example, Metrovacesa announced that by 2020 they will build 4,000 apartments on the Costa del Sol. Other large construction companies are not very much behind. Taylor Wimpey, Neinor Homes, Kronos Homes, Aedas, TM Grupo Inmobiliario are just a few giants of the housing market in Spain who have a strong presence on the Costa del Sol. The off-plan market is an interesting proposition for those investors who don’t mind waiting until their home is built.
Buying an off-plan property, they pay a price often 30% lower than those who decide to buy a property already built and ready to move in. The areas that have seen a great increase in activity both with new and resale properties are the New Golden Mile, La Alquería, Los Flamingos, Atalaya, Nueva Alcántara and La Cala de Mijas.
Valuations of homes per sq m
The forecasts show that the real estate sector continues its upward trend, although the growth is more moderate than in previous years. The market is reaching an equilibrium point which is giving way to the stabilisation of the market.
Some regions, including Andalucía, are still in full upswing, others are beginning to see a slowing down of growth.
According to the Tinsa report, the beachfront apartments on Marbella’s Golden Mile and Puerto Banús reach €14,000 per sq metre. If we take for example some of the villas on the Golden Mile, their prices per square metre can go up to €20,000. The below graph shows how many m2 can be bought for €1,000,000.
Malaga-Costa del Sol Airport had a record-breaking in 100 years
This year, Málaga airport has been the busiest since its creation 100 years ago. According to data from airport operator AENA, Over 2.2 million passengers passed through the region just in August alone, 4.1% more than the same month last year.
Duplex Penthouse with sea views REF: NEA0083
Last year, in general, was a very busy period for the whole of Spain. The number of passengers reached 263.7 million, a growth of almost 6%. At the same time, Málaga registered 19 million passengers travelling both nationally and internationally. Both foreign and domestic numbers increased. This is the highest number Málaga has seen until now.
According to the AENA report, the UK remained a leader in 2018, bringing over 5m travellers. The next highest number of travellers came from Germany, 1.6m, France 1.1m, and Holland, 1.1m.
So who buys homes on Costa del Sol?
While the market share is still very much dominated by the Brits (their market share back in 2015 was over 21%), in the light of Brexit this figure has dropped to 15%. This allows other countries to represent a bigger chunk of the market share.
The chart below represents the top 10 nationalities buying properties in Marbella and around.
As one can see, the overall market situation is optimistic. Steady increase in prices, many new and attractive developments, more investment funds increasingly engaging their funds in the market – all this makes us believe that we have another good year ahead of us.
Penthouse with sea views REF: NEA0077
If you are looking for a property, our team at Nor Estates will be glad to help you choose the best option for you.