Study forecasts 10pc growth In Costa del Sol market

Costa del Sol

Costa del Sol

Buoyed by foreign buyers, the Costa del Sol property market is forecast to grow by ten per cent this year, according to a report by the Instituto de Practica Empresarial (IPE) business school, in collaboration with property company Mar Real Estate.

The study by IPE, a business school that specialises in real estate, claims the property sector will grow 10% in beach destinations like the Costa del Sol, between 5% and 7% in big cities like Madrid and Barcelona, and by 3% in cities in the interior.

In particular, the Costa del Sol property market has a bright future, says José Antonio Pérez, from the IPE, in comments to the Spanish press. Sales in Malaga province, home to the Costa del Sol, are already up 10% this year, and now represent 5% of all sales nationwide.

If sales continue growing at their present trend, the property market in Málaga province, home to the Costa del Sol, will increase to 30% of the Andalusian market, which in turn will increase to 20% of the overall Spanish market, buoyed by foreign demand for holiday homes on the Costa del sol.

Surging sales will help digest the glut of new homes on the coast, argue the IPE. The excess inventory of new homes is expected to fall by 50% this year, and new home construction start to show signs of life, having fallen by 90% since the top of the boom.

Luxury home sales, in particular, are coming back strongly on the Costa del Sol, says Pérez, driven by a better exchange rate in Pounds and Dollars, and the security and stability of Spain compared to other destinations with pleasant climates but problems of security.

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7 thoughts on “Study forecasts 10pc growth In Costa del Sol market”

  1. Bernard Hornung

    Having just spent 10 days on the Costa del Sol, I find this hard to believe. The patchy, fragile and uncertain recovery may possibly have manifested itself in a few spectacular and wholly unrepresentative sales.

    The market remains hugely over supplied. Elasticity of supply will assure Spain with a perpetual boom-bust property market.

  2. David

    Sales may be up but prices are down, and so says a recent report on this site by the Institute of Tasacion which appears to have been forgotten already. One only has to drive around the CDS to see many unfinished developments, so many Se Vende and Se Aquilar signs, and there are 1000’s more properties just waiting to hit the market as things look like improving. Agents tell vendors to lower their prices and expectations but tell buyers another story.

  3. Amine BOUTALEB

    Je suis en accord total avec les commentaires de David et Bernard qui tempèrent les conclusions de cette étude…
    Aucun signe ne permet d’affirmer que le cycle baissier des prix de l’immobilier touristique en Espagne est en train de s’inverser. Je dirais bien au contraire, que pour les deux prochaines années, la baisse devrait se poursuivre (notamment du fait de la disparition quasi totale de la clientèle russe et ukrainienne suite à la dévaluation du Rouble et aux sanctions internationales). Témoin du repli du marché russe de manière général, EasyJet a cessé de voler à partir de Moscou vers Londres en raison de l’effondrement de la demande du traffic passager (Londres était pourtant la destination de prédilection des clients russes – cela en dit long sur l’état des autres marchés périphériques, dont l’Espagne…) : http://rbth.co.uk/international/2015/09/11/easyjet_to_stop_flying_from_london_to_moscow_49177.html

    Les chinois qui représentaient la plus forte progression de demandeurs de “Golden Visa” en Espagne risquent à leur tour de se replier sur les grandes capitales européennes et ne sont plus dans une optique d’expansion en Europe du Sud à cause de leurs difficultés sur leur marché intérieur et les conséquences de l’effondrement de leur marché boursier.

    Je considère en revanche, que ces deux prochaines années vont constituer une fenêtre d’opportunité unique pour les investisseurs sérieux qui vont profiter de ce trou d’air passager.
    Les atouts de l’Espagne sont uniques et ne vont pas disparaître de sitôt. La culture touristique du pays et la qualité des infrastructures en feront, j’en suis convaincu, le grand vainqueur autour de la méditerranée des turbulences géopolitiques actuelles… Je reste absolument fan de l’immobilier espagnol, à condition d’en faire son métier, et de le faire sérieusement…

  4. Profile photo of rojoybagorojoybago

    well folks, sorry but you’re out of date. The banks have just about got rid of all their stock ( in decent areas ) and have put up the prices of whats left by 10% plus. In A grade areas all the bargains went at least 18 months ago and I would say prices are up 20%. There is a lot of rubbish for sale but there always has been. The coast is teeming with buyers who are looking and buying. If you think there were thousands of agents in 2005, well, think again there are even more now and they’re selling.

    The whole coast is different and is in the process of a giant leap into the future …….. prices are up already for sure; are they going up more? not for the moment as developers are starting to build like crazy and the Euro economies are still treading water !

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