Costa del Sol Real Estate Market Set for New Decade of Renewed Prosperity
It all began around 10 years ago. The precise date varies from area to area, and region to region, but in 2007-2008 the Costa del Sol started to suffer the first shivers of what was to become an endemic property malaise. One decade on, the area’s real estate market is also the first to be bouncing back from the crisis: once again in good health, wiser and better managed, carefully avoiding another over-heating dilemma, and experiencing solid progress.
In fact, just about every index of business activity indicates that the market is in better shape than it has been for 10 years – which is good news for both buyers and sellers. The number of resale homes being sold is on the rise, developers have renewed confidence in investing in new builds, prices remain attractive for homebuyers, commonsense is prevailing when it comes to bank lending, and the repercussions of the dreaded Brexit have (at least so far) been minimal, as Britons continue to favour southern Spain as a residential-tourism destination and any slack is made up by increased interest from other nationalities.
A report this week in the Financial Times highlighted the key growth areas, quoting Adolfo Ramirez-Escudero, chief executive of the Spanish arm of real estate service firm CBRE, as noting, “Residential construction activity in Spain is finally back. The demand is there and companies are building again.”
According to the Financial Times, “This comes as the wider Spanish property market seems to have turned a corner. Housing prices fell 35.2 per cent from 2007 to 2015, according to property site Idealista, but are up three per cent this year and two per cent last year. Analysts say this is set to continue as Spain’s economy continues to grow at about three per cent a year — one of the strongest in the eurozone. ‘The scarcity of new housing in some places and the impulse of demand, supported by employment growth, point to new price increases,’ says Jorge Sicilia, the chief economist of BBVA, the Spanish banking group.”
Another authoritative figure in the industry, Mark Stücklin from the Spanish Property Institute, releases a “House Price Index Tracker” each month that plots the progress of the most-watched house price indices in Spain. “All the data published in August shows house prices in positive territory, and converging on modest house price increases to a greater degree than ever before,” says Stücklin. Specifically…
- The Land Registrars’ Association index +4.4% in June
- The Notaries’ Association index +1.4% in June
- The Tinsa index based on valuations by the company +3.7% in July
- The Idealista asking price index +1.7% in August
“Whilst house prices around Spain rose 3.7 per cent on average,” adds Stücklin, “they were up 6.4 per cent in big cities and provincial capitals, by 3.3% on the Mediterranean coast, and by 2.6% in the Balearic and Canary islands.”
Meanwhile, latest figures from Spain’s National Institute of Statistics show that home sales inscribed in the Land Registry rose by 19 per cent in July. According to the SPI, “Home sales have risen by double digits almost every month this year, in keeping with a recovery trend that started in March 2014 when the market turned the corner after seven years of declines.”
Finally, the controversy surrounding Ryanair’s flight cancellations across Europe has caused understandable anxiety and even anger among passengers, but there is at least some good news for those travelling to and from the Costa del Sol. According to a report in the Diario Sur newspaper, Málaga’s international airport is only affected by two of the 2,000 flights being cancelled to the end of October (from and to Marseilles yesterday – 21 September).
Luxury Living
One of the great success stories of the Costa del Sol’s real estate revival is Benahavís, where this contemporary villa is priced at an excellent €1,450,000.
Outstanding Homes
We appreciate your taking the time to read about this exceptional property, but perhaps it is not exactly right for you? If not, we invite you to have a look at our other stunning selections for:
Luxury Villas,
Apartments,
Golf Properties,
Seafront Properties,
La Zagaleta and
Special Offers. Simply click on the category of your choice and follow the link. Also please feel free to roam around our website:
www.villamarbellanow.com
English
Español
Pусский