Costa del Sol housing market a bellwether for Spain says expert

The property market on the Costa del Sol will start to recover before the rest of the Spain, argues José Luis Suarez, a professor at IESE business school, and Spain’s leading authority on the housing market.

With its high percentage of holiday-homes built with foreign buyers in mind, Malaga province (home to the Costa del Sol) can count on internationally diversified demand, whilst many other Spanish provinces have to rely solely on local demand weakened by recession and unemployment.

“In the real estate sector, the Costa del Sol is a leading indicator: it went into recession before other areas, and it will start to recover before them as well,” said Suarez in a recent interview with local newspaper La Opinion de Malaga, during an industry conference called ‘In Search of a New Identity’.

Knock ’em down

Suarez also warned that some new developments might have to be demolished because they have no market. “Many of the new homes in stock are flats of poor quality or located in undesireable areas,” said Suarez. “The stock will have to be digested by the market over time but I will tell you one thing: there are some developments that will have to be demolished because they cannot be sold. It’s something we have yet to see in Spain…..though there have been precedents of this kind in other countries.”

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3 thoughts on “Costa del Sol housing market a bellwether for Spain says expert”

  1. gtibruce

    Quote; The property market on the Costa del Sol will start to recover before the rest of the Spain, argues José Luis Suarez, a professor at IESE business school, and Spain’s leading authority on the housing market.

    Why does this person have to even mention any part of Spain will recover? Why cant we have some positive bearishness all-round instead of any utterances of a glimmer of hope Let the bears rule for a change

    Its always got to be someone of importance who we should look up too making claims of confidence to guide us because they always know best?? Well its the people in high places that has got the world in the mess its in today Thanks!

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About Mark Stücklin

Mark Stücklin is a Barcelona-based property market analyst and consultant, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on ms@spanishpropertyinsight.com.