Costa del Sol, a Very Attractive Region for Real Estate Investment
Many years have passed since the beginning of the crisis somewhere round 2007, due to the global financial crisis and the bubble generated in the real estate sector. The restructuring has been slowly occurring until 2013, with 2015 being the inflection point towards the first symptoms of recovery.
During 2016, the purchase and sale of housing reached 403,866 units, 85% of them were second hand, being the highest amount since 2010. The BBVA entity expects that more than half a million transactions will be closed in 2017.
According to data collected by the Center for Statistical Information of Notaries (CIEV), 48,695 homes were sold in March.
The restructuring is slow and necessary, in some areas the price path is slower and more prudent, even within the same province, zones that are still in the stabilization phase.
Real estate in Malaga
The total amount of real estate sold during the last year in this city has reached 26,186 homes, the highest figure since 2008 (data collected by the National Institute of Statistics (INE)).
Malaga is a very attractive city for real estate investment. Either for its features or consolidated cultural and leisure growth, Malaga has become the fourth of the provinces with greater activity only surpassed by Madrid, Barcelona and Alicante. It has experienced significant growth during 4 consecutive years, due to the continuous and growing demand for the foreign market.
The Costa del Sol is one of the most touristic destinations, where the increase of the demand and a greater financing, is causing a generalized increase of the prices in the coastal localities. The acquisition of homes by the foreign market, especially headed by Belgians, Norwegians, Danes and Russians, has experienced a great improvement, activating the business and the desire to invest in these coveted areas. Marbella and Mijas experience the greatest increases. The square meter on the Costa del Sol already touches the 2,600 euros.
Second-hand housing is the most demanded, due to the shortage of new construction. According to Aguirre Newman, 37 projects are being developed in Marbella, with an average price of 2,594 €/m², prices far from the ones of the years 2006 2007.
The low supply of the long-term rental and the price increase
The high demand in the long-term rental is causing real headaches for many real estate companies, which are overwhelmed by the scarcity of this type of real estate and the great offer they get. The current situation is encouraging 62% of young people to consider buying a home before they get to 35 years. 72% assume that they will have to apply for a mortgage and 58% think they will spend more than 200,000 €. Data collected at Uniplaces.
A critical factor to confront this new paradigm is specialization and professionalization. An example of this type of companies is Orangestate, located in Fuengirola and with more than 15 years of experience. They are well aware of how important it is to provide an excellent service in the whole process of purchase of a property, an integral service that assists the customers at all times, helping them to choose the property that best suits their interests and expediting the tedious consulting processes that come with buying a property.
An effective and exclusive methodology of work is a fundamental basis for your business model.