Costa del Sol real estate market
The Costa del Sol real estate market is finally booming after many years of stagnation and crisis. Both the region’s most important city – Malaga and the coast – are experiencing a period of high demand for real estate that has been going on since 2015.
There is no doubt that foreign tourists who spend longer periods in Spain and the boom in the real estate market rented for a short period through the popular booking.com and airbnb.com websites contribute to a large extent to the increase in demand for new and new properties from the secondary market.
The increase in demand has caused real estate prices on the Costa del Sol to rise, prices in some locations have reached pre-crisis levels in 2008. As experts emphasize, however, there are still opportunities on the market that must not be allowed to escape.
¨Costa del Sol is a reference point for foreign investors, especially Malaga. The city has all the qualities important from quality and ease of life, attractiveness for investors: high-speed rail, port, airport, very wide cultural and gastronomic offer. All this means that more and more people from Spain and Europe choose this place to spend autumn life “, emphasizes Claus Vestergaard, founder and CEO of HOME INTERNATIONAL real estate.
There are three types of investors on the Costa del Sol market: institutional – large investment funds purchasing real estate portfolios or implementing development investments, a small investor buying property on the Costa del Sol for themselves or as an investment, and a local investor – buying an apartment or house also as a deposit of funds and investment.
Future of Costa del Sol real estate market
It is estimated that this dynamic development in the real estate market and boom will last 4 or 5 years.
The rental of real estate is a very important element of the market, many foreigners first rent a property and then decide to buy. Of course, short-term tourist rentals are also very important, where profitability can reach even 10 or 12%.
Buyers from Sweden, Belgium, Germany, and France are the largest group of foreign customers purchasing real estate on the Costa del Sol.
Costa del Sol was the first region that began to recover from the crisis due to the interest of buyers from abroad.
Strong demand caused a change in prices in some locations, such as in the Marbella, Estepona and Benahavis triangle, where currently there is nothing below EUR 300,000.00 and where the average sale price is from this base up to EUR 1 million,” emphasizes Claus Vestergaard from HOME INTERNATIONAL real estate agency.
The cities where the market develops most dynamically are Mijas, Fuengirola, Estepona, prices in these locations are quite high, at the other end are Benalmádena and Torremolinos.
Most new investments are being built in Estepona, a large number of golf courses, great views of Gibraltar and Morocco, attract both developers and buyers of real estate.