The Costa del Sol has long been a favourite destination for sun-hungry people relocating from Northern Europe. However, since the Spanish property market collapsed in the wake of a world-wide economic crisis and corruption scandals erupting across Andalucía, high unemployment had dogged the country's economy and put off potential house buyers seeking to relocate to sunnier climes in the Malaga Province such as Marbella, Fuengirola, Estepona or the City of Malaga itself.
The most recently released statistics for employment in the region show a rather mixed bag of fortunes for Malaga Province. Although the region is still one of Spain's top performers when it comes to the reduction of unemployment, but job creation has slowed noticeably since 2014.
Figures for the latter part of 2015 may show a decrease of unemployment figures, but this was achieved by natural wastage rather than job creation. With a small working population the national unemployment report for the fourth quarter shows that the number of unemployed people in the region fell by 37,600. In the autumn of 2015, some 214,500 people where unemployed in Malaga Region, or in terms of percentage points, ca. 27% of the working population were without a job.
That may be nearly four percentage points below the same quarter result for 2014 and the lowest unemployment figures since 2009, but it still means that anyone relocating to the Costa del Sol with the view of working there needs to thing outside the traditional box before making that move.
Time to be entrepreneurial
Around 15,800 new jobs were created in the fourth quarter of 2015, which put Malaga Province in fourth position after Madrid, Barcelona and Almeria with regard to an improvement in unemployment figures. However, compared to 2014, when job creation amounted to 66,700 new workplaces, this result shows a serious slowing down of the region's ability to create jobs without large-scale investment.
According to official figures, the services sector was the main generator of new workplaces in the Malaga province in 2015, creating 500,000 new jobs. New technology start-ups are particularly dominant in the small business enterprise segment of this sector and Malaga has become popular with digital nomads, entrepreneurs hoping to take advantage of the vibrant new technology-based community that has sprung up in the city.
The construction sector, led mostly by new luxury builds in Marbella, added a modest 1,700 new jobs, while farming was responsible for creating 2,700 new jobs. Offsetting these positive trends are the 6,900 workplaces that were lost in industry.
The total number of unemployed people in Spain currently stands at around 4.8 million, the lowest since 2010. Last year, 678,000 people previously unemployed, found jobs. In Andalucía this meant that 197,400 people found new jobs in Quarter 4 of 2015. Naturally, this is good news, but it nonetheless means that 30% of people are still unemployed in the region.
Such figures make for uncomfortable reading, and not helpful to those hoping to buy their dream home in Benehavis or Elviria in the eastern part of Marbella this year.
It is time to put on entrepreneurial thinking caps. With lump-sum retirement fund hand-outs available for the first time for British residents, there are many new opportunities in Andalucía.
Exploiting Niche Sectors in the Tourism Industry
Tourism offers still a wide range of possibilities to those wishing to lead a more enjoyable life in warmer temperatures. One such area is wine tourism (enotourism), which has grown considerably in popularity over the last few years.
For entrepreneurs with a sizeable nest egg this either means buying an established bodega or purchasing land and turning it into a vineyard. Malaga Province is famous for its sweet desert and dry white wine (Muscatel), which is sold under the DO rule, meaning the Denominacion de Origin label that guarantees buyers wines come from exactly the region (and wine-producing tradition) stated on the bottle.
Andalucía boasts some 40,000 hectares of vineyards, many of which are located in stunning countryside with views over both sea and mountains. Wine tours are a popular addition to tourists' beach, water sports and nightlife itinerary and bodega owners have added wine talks, wine appreciation courses, wine museums and guided countryside walks into the mix to make it even more interesting for visitors and lucrative for vineyard owners.
Relocating to the Costa del Sol is therefore not confined to finding a job, buying a residential home in Marbella or Malaga and living happily ever after in the Mediterranean sun. One must also look beyond the traditional set-up of running a B&B, a bar or tapas restaurant along seafront promenades. Savvy investors convert run-down rural properties into small hotels with the help of rural tourism grants, or take on niche markets in the tourism industry and turn them into something that will provide them with a long-term income as well as offering a far more enjoyable lifestyle.