What is expected of the real estate market in the Malaga Coast?

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The market has set the funds for a continuous growing

The second province of increased purchases by foreign citizens in Spain is Malaga, where the Costa del Sol is located with a total of 4,739 properties, only in the first quarter of 2014, and this is a recovery process that started from the 2012. increases were seen in both the number of purchases and the number of sales, which have increased by 28% and 2.2% respectively in the region. This trend is expected to continue in the coming years, mainly in shopping, while prices may continue rising but not at such a rapid pace.
The trend for price increases this year, is expected to continue according to 2015 where there were increases of up to 15% in the most demanding areas such as Madrid, Barcelona and Marbella, mainly in the areas of greater luxury and exclusivity. By 2016, although it is expected that the trend is positive, the increase is not thought to be so abrupt, and it is estimated that this between 3% and 5%, however, may be higher in coastal areas such as the Malaga Coast, where you can produce up to 10% increase.
Malaga on the south Andalusia region over the past year there has been a slight increase in promoter activity, which is important because in the past three years had not started any new construction. However, the report notes that the initial supply of housing new construction in the regionhas fallen by 18.4% last year, from 18,485 to 16,508 units. Of the total housing new construction, 29.7% are unsold. A fact that “evidence a decline in stock on initial offer of 31.5% compared with the previous year.”
In this context of improvement of the sector it has analyzed a total of 266 promotions of new property in Costa del Sol (multifamily and single-family home). Of these, 207 were active promotions, paralyzed or 26 out of 33 marketing and promotions sold during 2013. The 41.06 percent of all promotions in marketing phase are being managed by financial institutions. If you also add promotions out of this situation (paralyzed or bank award processes), the percentage of promotions run by financial institutions and SAREB amounted to 53.6 percent (111) have stated since the consultant in a release. In the case of the SAREB that of the 3,000 houses that projects finish in Spain, will concentrate 166 on the Costa del Sol.
According to the consultant, half the homes in the south Andalusia have two bedrooms and 127 square meters; regarding family house, we find three bedroom type houses and 278 square meters. Average prices are 196,956 euros and 393,520 euros respectively, and after falling slightly less than 6% in the case of flats located on the coast of Málaga, and almost 10% for houses and cottages.

Market in the Malaga Coast

Market in the Malaga Coast

Foreign investment as a key to growth

The foreign buyer still found in the Spanish residential market a great investment opportunity, especially now with housing prices lower. This interest is even more tangible in areas such as the Costa del Sol, where foreign demand has registered an excellent performance last year according to the Report of the Residential Market of the Costa del Sol Golf, compared to a domestic demand stalled by the economic context , unemployment and difficulties in obtaining financing.
Statistics show that more and more buyers from outside Spain buy more floors to total transactions in the market, reaching record highs beat. Despite stabilizing prices, this trend has increased, and is that housing prices in this country are still very attractive especially in the coastal areas such as the Costa del Sol, for citizens from relatively stronger economies than ours.

Europeans are the most common buyers in Spain

Europeans are the most common buyers in Spain

The Spanish coast returns to dazzle the foreign buyer of a second home with his best claim. There is much activity of acquisition of new buildings, as well as buying opportunities existing homes. New turnkey apartments of one to three bedrooms and 800 meters from the beach chalets with ocean or mountain views, luxury homes that are a real bargain for a British, Belgian or German investor.
One indication that evidence the aggressive demand for housing by foreigners is that the supply of homes available in Marbella has been depleted and cranes reappear on the ground. Dozens of new projects have begun to develop since the beginning of the year and have been reactivated work halted at a rate of reasonable sales and marketing plan.
The growing demand is one of the reasons that energize gross profit for rental housing in the beach area, which is one of the key indicators of property value. Hence, the sale of houses to foreigners in this autonomous region is a great business opportunity, and if we consider that home buyers in Marbella, for example, are 70% foreigners.

Ease in obtaining credit

Among the causes attributed to the increase in real estate activity in the region according to Ignacio Acosta Sorge, is the fact that banks have made easier the process of obtaining credit, which in general terms to foreign buyers can get mortgages for 20 years interest rates up to 2.75%. This has aroused the interest of many buyers interested in Marbella and its surroundings were a while ago, but they have after the fall in prices during the housing crisis, and with these banking facilities, they determined to make the decision to buy a property in the region, which many real estate analysts, is considered as a safe investment.
After a month of moderate January signing mortgages to buy housing has accelerated its growth during February. Thus, the number of new mortgages constituted on homes registered in the records of the property stood at 24,887, 15.9% more than the same month of 2015, as reported by the National Statistics Institute (INE). In recent years, even with a weak economic recovery, it has not stopped since May 2014 hiring mortgage to buy a home maintain a positive trend, totaling 21 consecutive months of promotion.
The initial average interest rate for mortgage loans on residential property reached last February 3.31% compared with 3.35% a year earlier, while the average interest rate for total stood at farms 3.32%, with an average term of 22 years.
89.2% of mortgages last February used a variable rate, compared with 10.8% fixed rate. Euribor is the reference rate most used in constituting mortgages to variable interest, appearing in 93% of new contracts.

New projects in the door

Due to the growing real estate market in the region, new developments have their sights set on being built in Costa del Sol. An example of this is a series of luxury apartments to be built as close to the golf properties. The properties offered are modern, mostly two rooms, and prices are between 240,000 euros and 390,000 euros. They also have the advantage of being only 10 minutes from Puerto Banus and 5 minutes from San Pedro de Alcantara.
Wanda Star project is one of the most ambitious, and will be built at the initiative of the tycoon Wang Jianlin, who has seen great investment opportunities in the region, and therefore has made is choosing to build a tourist and hotel complex in south Andalusia. This project will be built in conjunction with the local group Villa Padierna, to form a luxury hotel expected, be successful and attract a greater number of Asian investors to the Malaga Coast.
Similarly, major American real estate conglomerates, have decided to invest in the region. One of the most important has been the company from Colorado, Real Capital Solutions (RCS) with over 30 years in real estate in the United States, and it plans to invest more than 200 million euros in the region.
One of these developments is Valley Heights located between Los Arqueros and La Zagaleta, which was built prior to the housing crisis and who had been in the hands of banks. The cost of property is between 269,000 and 464,000 euros, with apartments of 2, 3 and 4 bedrooms.

Property at Benahavis Hills Country Club

Property at Benahavis Hills Country Club

Other new luxury projects like Benahavis Hills Country Club, are examples of new developments in the region. This is more upscale than previous ones, and is composed of villas and town houses that have large areas.
Projects in the area are expected to continue rising as most of the space available for construction are located in this area. They also have the advantage of being close to many of golf clubs on the Costa del Sol, and is close to the major sites of importance in the region.
That is why large international conglomerates are interested in continuing to build in the area, which has already made its bet that until a few days ago was the wealthiest man in China.

The Costa del Sol Luxury reference for investors

The Golden Triangle of the region is where most investors have laid eyes since they began their investment in the region. They buy million dollar homes in developments such as La Zagaleta, the Golden Mile and Puerto Banus where the wealthiest people visiting the region invest.
Something that has always done highlight the Costa del Golf real estate over other destinations in Spain or Europe has been elegance. For this reason, here come together celebrities, movie stars, socialites, European aristocracy, and even the kings of Spain and Saudi Arabia have properties in this region and eventually spend their summers here. So if what you want is an autograph, you do not have to go to Los Angeles to search for artists but come in summer to Marbella.
Puerto Banus represents the ultimate in luxury and exclusivity that can be found in Marbella, which brings together shops, yachts, top brands shops, restaurants and hotels. It is for this reason that year visited by more than 5 million people.
In the port are some of the largest and most luxurious yachts in the world, so the price of mooring exceeds 2500 euros, and is the most expensive room in the world behind only three Italian ports.
The biggest fashion in brands the world like Dolce & Gabbana, Gucci, Louis Vuitton, Dior, Hermes have their shops in Puerto Banus. The same applies to restaurants and clubs where artists and celebrities share the music of the most famous DJ`s of the music scene in places like Olivia Valere, Pangea, Cavalli, Seven, Tibu, among others.

Written by: CAPD

Words: 2066

Contribution to the reader: Support with information to all that people that is interested in investing at the Costa del Sol, knowing wich will be the behaviour of real estate market in the region.

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