Positive “Brexit” Trends... and Strong Global Investment Confidence
When it comes to analysing the potential effects of Brexit on the Costa del Sol real estate market, an expert inside view is always valuable. This past week some particularly illuminating insight came from one of the Coast’s prominent new property industry protagonists, Round Hill Capital. The global property investment firm is developing the €250 million Palo Alto luxury residential development in Ojén municipality – on the outskirts of Marbella.
Round Hill Capital noted that, while historically the Costa del Sol had benefitted from private investment from the United Kingdom, renewed interest in the Andalucian coast from Scandinavian and central European markets was “dispelling the shadow of Brexit” in the real estate sector.
The company referred to official statistics showing that foreign buyer numbers appeared to have stabilised at a figure above 13 per cent, “which maintains a position as one of the all-time highs”. Britons were top of this list, the same as when the research began in 2006. “However, the market accumulates three consecutive trimesters losing traction in relative terms and giving rise to figures under 20 per cent. In fact, the decrease between the second and third trimester of 2016 is especially marked, dropping from 19.73 to 17.66 per cent, demonstrating a decrease of almost two per cent.”
According to Palo Alto, the number of French buyers increased by nearly two per cent to be second with 8.91 per cent. “This significant growth renders them one of the most active nations, with their increase compensating in part for the reduced British demand. Germans (7.32 per cent), Swiss (7.14 per cent) and Belgians (6.2% per cent) come third, fourth and fifth, respectively, in the rankings for buying a second home in Spain, strengthening their presence in the housing market and increasing their importance both in absolute and relative terms.”
On a more specific basis, with 50 per cent of its first phase sold, Palo Alto’s own experience and buyer statistics reinforce this trend on the Costa del Sol. Germans and Belgians top the sales figures with 38 and 15 per cent, respectively; Norwegian, Italian, Dutch and Spanish buyers follow, each with six per cent; and French constitute three per cent.
Explains sales director Simon Boxus, “The crucial commitment by the developer and architects to quality of design and materials and the privileged environment, together with the recovery of the economy at both a national and international level, means that Europeans view the Costa del Sol as an exceptional destination.
“In these circumstances, destinations like Ojén… offer both physical and legal security. According to the figures deduced from both the luxury reservations and the marketing reports, the decrease in the British market is undeniable. However, German, French, Belgian, Italian, Dutch, Spanish and Norwegian buyers have found an answer to their demands for high-quality real estate in Palo Alto.”
(Prices in the Palo Alto residential complex – featured here – range from €450,000€ to €795,000.)
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