From the very start of the pandemic, the new-build sector on the Costa del Sol has proved able to withstand a crisis. And 18 months from the arrival of Covid, new builds continue to consolidate their upward trend. A study of Costa del Sol’s new-build prices for Q2 this year finds that increases range from 2.45% to 4.4% in the western resorts.
The latest report from the Malaga city-based Property Observatory (OMAU) looks at the new-build sector in the province between April and June this year. It concludes that in Q2, “prices remain stable”.
Specifically, the price per square metre build reached €2,974 in the second quarter of this year, a year-on-year increase of 2.45%. The western Costa del Sol, Torremolinos to Manilva, saw a similar increase, although resorts within it posted a higher rise.
New-build prices in Estepona went up the most – by 4.4% to €2,679 per square metre. Marbella came close behind with a 3.64% increase, bringing the average new-build square metre to €4,162, the highest on the Costa del Sol.
Contained but better than other areas
The OMAU pointed out that the recent figures show that new-build prices on the Costa del Sol are currently contained but without “the decreases seen in other parts of Spain”.
The Observatory attributes this difference to the twin aspects of the Costa del Sol property market. On the one hand, the property serves the first-home market and on the other, is an investment asset. “Property as an investment appears to have no real effects,” said the report.
Marbella prices ahead of those in 2007
Prices for Spanish property in the current cycle always take 2007 as their benchmark for the highest values on record. In Q2 this year, Costa del Sol new-build prices generally were 6.3% higher than their peak 14 years ago.
New-build properties on the west coast now cost 6.1% more than they did in 2007, although the overall percentage hides huge differences. For example, in Marbella, it now costs 25.5% to buy a new build while in Estepona, it costs 6.6% less. In Manilva, the difference is even higher – in this resort, current new-build prices still lag 15.8% behind those registered 14 years ago.
Fewer building licences
The OMAU report also measures new-build activity on the Costa del Sol by looking at the number of new licences issued by each council. In the year to Q1, new licences dropped by 32.43%. The decrease was probably caused by the uncertainty in the general economy in the wake of the pandemic.
However, yet again, the figure masks big local variations. In Marbella, for example, 58 licences were issued in the year to March, a 56.76% increase on the previous 12 months. Mijas, where new licences totalled 252 in the year, saw a similar rise. However, in Estepona, new licences fell by over 85% after a year of intense activity in the new-build sector.
Find your new build
The containment of Costa del Sol new-build prices makes now an excellent time to buy. You’ll also find a choice that is second to none in Spain in terms of quality, variety and location.
At Realista, we list the best new developments on the western Costa del Sol from beachside apartments to mountain-top mansions via urban penthouses and golf townhouses. Take a look at what’s currently on our books and of course, if you can’t find what you’re looking for, get in touch with our expert team.