Balance of the real estate sector on the Costa del Sol in 2017

2017 can be considered an optimistic year when it comes to the real estate sector, even specialists have come to call this year as the year of the reactivation or recovery of the real estate market after a tough first quarter of 2016.

In the first quarter of 2017, the real estate market consolidated its recovery, due to the increase in demand along with the large supply of existing homes at the time. This large supply and demand in the real estate sector is due, among other things, to the economic recovery that is occurring in Spain, this creates that the population acquires more confidence and that the investment risk is lower compared to previous years. 

Among the communities that have seen the most positive behavior is Andalucía, it is the autonomous community where there have been the most housing transactions in Spain. But especially and as we will see later, where a large number of transactions have been carried out, it have been in the province of Málaga. 

In the following graphs you can see the total number of real estate transactions of homes in Andalusia during 2016 and 2017.
It can be seen that in 2016 the interest and behavior of the public regarding the real estate sector was positive, until 2017, when we observed that the number of housing transactions has been maintained or even increased. Malaga is a clear example of this, in the graph we will see that it is the province where more acquisitions of housing is made throughout Andalusia. 

Purchase and sale operations of homes on the Costa del Sol (2016)
Fuente: Ministerio de Fomento
 
Purchase and sale operations of homes on the Costa del Sol (2016)
Fuente: Ministerio de Fomento
 
In the tables we have observed the significant increase in housing transactions in Malaga compared to last year and in the absence of data from the last quarter of 2017, but with these data we can already draw conclusions:

- There is an increase in housing transactions in 2017 with respect to the previous year (which was considered the year of the beginning of the recovery of the real estate sector)

- Malaga is the province with the largest number of housing sales transactions in Andalusia.

- Users of foreign nationality make a large number of these transactions.

- One of the reasons for this great notoriety of property sales in Malaga are also due to its magnificent climate and lifestyle that makes people do not hesitate to make Malaga their new home.

According to information obtained by the newspaper El País: "The real estate sector in Malaga grows more than the average of Spain and Andalusia".

Currently Malaga is a booming city and that is reflected in the great demand and interest in the homes of this Andalusia province, but why this interest in the Costa del Sol? The reason is simple and its own name indicates it, “La Costa del Sol” offers a fantastic climate along with some wonderful beaches, mountains, one of the best gastronomies in the world, all this becomes a great attraction for nationalities from all over the world who finally decide to acquire a property in this fabulous province.

But not all housing transactions originated in the city of Málaga, we must also highlight another city in Malaga that has a significant number of home purchase transactions, and that is Marbella, with 140,744 inhabitants, its proportion of transactions of housing is comparable to that produced in Malaga with a total of approximately 569,009 inhabitants, surprising right?

In the following graphs we see how the number of sale transactions in Marbella in 2016 and 2017 is quite high compared to other cities in Malaga such as Torremolinos, Mijas and Benalmádena, where the demand for properties has also increased in recent years.

Purchase and sale operations of homes on the Costa del Sol (2016)          Fuente: Ministerio de Fomento 

Purchase and sale operations of homes on the Costa del Sol (2017)      Fuente: Ministerio de Fomento

The main reason why the number of property sales transactions is highest in Marbella is mainly due to the fantastic and luxurious lifestyle that this city has, and secondly, another of the main reasons is the great offer of properties that exist in this area.

In this world-known city you can find fantastic homes and luxury properties, from an incredible penthouse with all the amenities on the beachfront as a contemporary villa in the mountains overlooking the golf course and the Mediterranean Sea and located at only 10 minutes from the beach. These aspects for anyone visiting Marbella for the first time seem incredible, but if we put together everything that this wonderful city offers, it becomes a strong reason to strengthen the interest of users in buying a home in Marbella.

But in the latter years, the high saturation of tourists and the high level of demand and supply of housing in this city has led promoters and investors to move their areas of interest to other areas near Marbella such as San Pedro de Alcántara, Benahavís or Estepona among others.

There are many projects that are currently being developed in these new attractive areas, among which we can highlight:

Atalaya Views is a contemporary villa located in the heart of the Atalaya Golf & Resort Golf Club, the villa has fantastic views of the Mediterranean Sea, Gibraltar and North Africa as well as the Sierra de Marbella.  It can be a great opportunity for golf lovers.

ATALAYA VIEWS - Contemporary frontline golf villa in Benahavis

On the other hand, Perlas del Mar is a new development project in San Pedro de Alcántara and it is a complex of 10 villas of contemporary character together with a modern design, located a few meters from the sea and close to all services (restaurants, schools, banks...).  Perlas del Mar is a project never seen in San Pedro.

Perlas del Mar - New development of 10 Beachside contemporary villas in San Pedro Beach

After this great 2017 for the real estate sector, it is expected that in 2018 it will remain on the same line and will even continue to increase significantly. It is estimated that this year the number of tourists visiting Spain will be higher than in 2017, which has already been considered a magnificent year in terms of tourism numbers. It should be noted that La Costa del Sol is still one of the most requested tourist destinations by users from other countries along with another great destination that also welcomes a large number of tourists every year and that is Barcelona, but after the political problem suffered in the community of Catalonia, there could be a rebound effect that would benefit the coast of Malaga and other attractive tourist destinations. This is because tourists want to visit cities where there is economic and political stability and where there is a certain social tranquility.

Therefore, it is expected that in 2018 Marbella will continue to maintain this positive trend in the property sales sector, both for second-hand homes and in the purchase of plots for subsequent home construction.

 

 

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