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.