For the first time since the crisis began, the statistics show a relief on the real estate market on the Costa del Sol. In the first nine months of this year, the sale of properties in the Malaga province has managed to break the negative trend of the previous four years, by growing 3.5% over the same period of 2011. According to the Ministry of Development, a total of 12,692 built homes in the province have been sold between January and September, almost a third of all properties sold in Andalusia.
In spite of the current difficult situation in Spain, the real estate market on the Costa del Sol remains one of the strongest, as Malaga is one of the provinces with the most property sales in the country: this year ranks as the fourth province with the largest amount of sales, behind Madrid, Barcelona and Alicante. A large part of this success is due to the growth in foreign demand, which is currently increasing at a rate much higher than domestic demand.
The Association of Builders and Developers of Malaga (ACP) receives this news with a mixture of optimism and caution. "Something is moving, the proof is that the 'stock' has been reduced to 15,000 homes by our calculations," says Violeta Aragon, secretary general, who gives another reason for this increase in demand. "Many purchases are being moved forward, as from the 1st of January 2013 VAT rises and the housing tax relief disappears," she says.
Builders do not trust the domestic demand for the industry's strong recovery in the short term. In contrast, foreign demand is experiencing a continuous growth, the ACP hopes to maintain or even intensify in 2013. Between January and September this year, the province exchanged 3099 real estate transactions where the purchaser were foreigners, 8.7% more than in the same period of 2011. These operations are centered in coastal homes.
Emerging Markets:
According to data held by the ACP on the real estate market on the Costa del Sol, the UK is still has the largest property buyer on the Costa del Sol, covering up to 30% of property sales to foreigners. Following are the Scandinavian countries, which together account for 20% and Germany with 9%. A growing minority, include the so-called emerging markets, particularly Russia, which absorbs 5% of the homes sold to foreigners.
The behavior in the type of property bought is also changing in new development properties and resale properties: the first is still falling (17%), while the second hand rose by 11%, representing almost 80% of total sales. By towns, sales go up especially in Manilva (which has doubled) and Estepona (16.4%). They have also grown, though less, in Fuengirola, Marbella, Mijas and Torremolinos. Instead, the areas that have experienced a decrease are Malaga (with 17.4% fewer homes sold) and Vélez-Málaga.
Source:
Diario Sur
