Buying a home at the Costa del Sol, perhaps in glamour resort Marbella or in Fuengirola, is the dream of many Northern Europeans fed up with harsh climates, high property prices and living costs. The desire to flee rain and sleet for warmer climes, fine sandy beaches and an exciting nightlife seems to have resulted in a turnaround for Malaga Province in Andalucía. The region has recorded the highest number of property sales since 2008, when the country’s property market collapsed.
Time to make a decision about buying a Marbella holiday home!
24,705 properties were sold in 2015, that’s 11 percent more compared to 2014. Low prices and more realistic expectations among sellers have played an essential part in this turnaround, for this is the third year in a row that sales figures have steadily grown. So far, prices have not increased in most parts of the Costa del Sol, although luxury accommodation with sea views in resorts like Marbella has become scarce due to high demand.
The official sales figures were published by the Spanish Statistics Institute (INE) and confirmed that sales levels for Malaga Province have reached a level last seen before the start of the crisis in spring 2008. Generally speaking, an 11 percent increase is good news, but a closer look reveals that sales figures have slowed their ascent a little, when taking the 14 percent increase seen in 2014 into account. However, market experts have stressed that higher increases are more easily achieved when initial figures are exceptionally low – and tons of bargain-priced homes are on the market for buyers to choose from.
Malaga Province Home Sales best in Andalucía
Malaga Province home sales accounted for nearly 35 percent of all properties sold in this part of Spain, doubling the result achieved in Seville, where 11,536 homes were sold last year. It is a long, long way off what was sold in 2007, of course. Then the Malaga Province housing market was at its peak and 42,000 homes found buyers that year.
New homes are still in far less demand than second-hand homes. Indeed, the new-build homes market was 37 percent lower last year than in 2014. Last year saw the lowest ever result for new homes sold in Malaga Province. Eight out of every ten homes sold in the province was a resale home, although for statistical purposes this includes new homes repossessed by banks when developers could meet their loan repayments.
Spain’s Homebuilders and Developers confident for 2016
Those involved in the homebuilding industry believe that 2016 will see positive changes across Spain, estimating that at least 100,000 new starts will come to fruition. Developers are hinting further there could be as many as 350,000 new residential homes being built across Spain. Last year saw 50,000 new starts, while in 2014 this figure stood at 35,000 new homes.
Given that Spain’s developers and homebuilders were responsible for 760,000 new homes per year before the property market crashed, these are slim pickings, but estimates do show that the market for this sector is finally moving into the right direction. There are, of course, still huge numbers of unsold new homes on the market in many parts of Spain, and before these are sold or some other use has been found for them, there is little hope that the pre-2008 levels of home building will return.
What does this mean for Northern Europeans in search of sun and fun-packed beach holidays and a Marbella home-from-home?
Holding out for the “perfect time” when the market bottoms out and prices are at their lowest is no longer an option. Demand has been very high in the 2-3 bedroom apartment segment of Malaga Province’s property market since the beginning of this year – and with older resale apartments being offered at 150,000 euros, even in Marbella, now is the time to buy for those hoping to secure their little place in the sun.