The number of foreign buyers in the Costa del Sol is in the rise and this could well end up boosting the residential property market in this area. This remains one of the most popular areas for foreign purchasers which is good news as far as the Spanish property market is concerned. The Costa del Sol has always been a popular settling spot for overseas buyers.
Instituto de Practica Empresarial (IPE) business school released a new market forecast report recently that in collaboration with Mar Real Estate, a property company. The forecast report seems to suggest that the market could grow by as much as 10% in the area, while there are also suggestions that the market could grow in major cities such as Madrid and Barcelona by as much as 5% and 7%. Other cities could well see market growth of approximately 3%.
Costa del Sol properties are already up by around 10% in the market according to the IPE, with a national sales representation of around 5%. If sales were to continue growing at the trend that has been set, the property market in the Malaga region could grow to 20% of the entire Spanish property market.
The Costa del Sol has always been a popular location as far as holiday homes are concerned, and the foreign demand is represented in the IPE report. The reports suggests that the glut of new homes in coastal areas will be helped by surging sales. It is likely that there will be a 50% drop in the excess inventory of new homes later this year.
The Costa del Sol has witnessed a surge in popularity of luxury home sales in particular according the IPE report. This is all thanks to the enhanced security and stability that has been experienced in Spain in recent times, as well as the better exchange rate in both pounds and dollars.
The positivity doesn’t end there either, with the latest report from valuation firm Tinsa showing that there has been a widespread increase in the Spanish property market. The average property price fell by around 2% year on year in July, which is the lowest rate of decline since May 2008. However, this doesn’t come close to some other parts of the Mediterranean which have seen price growth of around 2.8%.
The Mediterranean coast has seen prices fall dramatically since the economic downturn, by as much as 47.6% on average since it began. Since the end of 2014, the average price of a Spanish home has increased by 3.8%. Average prices in the Balearic and Canary Islands have seen average price increases of 0.2% and 0.9% respectively.
The data provided from Tinsa also suggests that the 10 most expensive property hotspots are located in the Balearic Islands. The data also suggested that the Balearic Islands were not as badly affected by the property market correction process compared to other parts of the country. The managing director of Mallorca Sotherby’s International Realty has said that prices per square metre in the Balearic Islands far exceed the estimations of Tinsa.
Alejandra Vanoli said “It’s not unheard of to reach as high as €30,000 per square metre for the most desirable Port Andratx home. Demand is strong from some of the wealthiest individuals and families in Europe, the US and beyond.”
Article provided by Panorama.es; Marbella’s no.1 real estate agent – the largest, longest running and most trusted agency on the Costa del Sol.