The Costa del Sol’s Flourishing Property Market

After a crisis filled seven years there are clear signs of a recovery for the Spanish market after all, especially for Costa del Sol.

Recent research published on the respected Spanish property information site www.spanishpropertyinsight.com reports that the Spanish property market has turned an important corner in the cities and prime coastal zones popular with foreign buyers. Long gone are the inflated pre-crisis prices and false dawns of recovery, the market genuinely experienced an expansion in January. The growth has been registered in ten of the last eleven months signalling that the market has found a foundation after seven long years of decline.

According to the National Institute of Statistics, in January, the market increased by 28% in a month and 10% in a year. But at a closer glance, this positivity for Spain states that sales are primarily concentrated in segments and certain areas only, it is not evenly spread out. Excluding social housing, home sales totaling up to 286,408 increased by 4% when compared to the figures of 2013.

The star performer of 2014 was the province of Malaga, which is home to the Costa del Sol- a favourite location for overseas buyers looking to invest in luxury villas and beachside apartments. Sales in the region are up by 20% in comparison with the national average of 4%, a clear recovery for the housing market in Costa del Sol.

Other areas that are performing well are the perennially popular cities of Barcelona and Madrid, and the Canaries, Costa de la Luz and the Balearics. In contrast, areas like Aragon and Sevilla, which are highly dependent on local demand, still experienced a shrink of approximately 10% or more in 2014.

In Malaga, re-sale properties rose by 50%. Sales in Marbella are increasing and in the best areas, house prices are witnessing small gains.

A leading Spanish property portal www.idealista.com shows property prices in prime Marbella locations have recently risen by 9%, making today’s asking prices just 17% less than they would have been at the peak of the market. The recovery on the Costa del Sol and Marbella is mainly down to foreign investors, domestic demand is still constrained with mortgage restrictions and other social factors. Whereas, foreign demand is better financed and diversified.

If you would like further information about property for sale on the Costa del Sol contact Bromley Estates Marbella at info@bromleyestatesmarbella.com.