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Over 10% of the national share.
A recent report from Colliers reveals that Costa del Sol’s new builds are one of the fastest-expanding markets in Spain. New construction in the province of Malaga equals 10.6% of the total in Spain, taking the Costa del Sol to second place in the national table.
Madrid continues to occupy the top position, with 15.8% of the market share. However, the rise of the Costa del Sol has pushed Barcelona down to the third place with 9.2% of the total.
Second-highest absorption rate
In addition, demand for new properties on the Costa del Sol lies well ahead of supply. Colliers report that the absorption rate in the area stands at 133.5%, translating to over 30% higher demand than supply.
The figure is the second highest in Spain, behind the Balearics, where the rate sits at 154%. Both the islands and Costa del Sol lie well ahead of other parts of Spain, such as Madrid, Barcelona, Seville and Valencia. In these provinces, the absorption rate ranges from 70 to 79%.
Demand ahead of supply
Further evidence of the low inventory levels for new builds on the Costa del Sol lies in the number of sales compared to new supply on the market. Between January and June this year, some 3,579 new homes changed hands. However, only 2,680 new builds entered the market. As a result, supply lags well behind demand.
Colliers expects the year to end with around 42,000 sales of Costa del Sol property. This figure translates to an 11% increase in transactions in 2021. New-build sales are predicted to total 2,680, just 17% and up 3.2% on last year.
Transactions in Marbella are, however, well ahead of this average. Figures for Q2 this year (the latest available from the Ministry of Development) point to a year-on-year increase of almost 58%.
Giant uptick in prices
Unprecedented demand for Costa del Sol’s new builds has pushed prices up since 2016 and at a rate that’s considerably higher than the rest of Spain. The latest Property Pulse for the area finds that the average price for new property in 2022 was €344,577, up from a medium of €194,161 in 2016.
The sharp rise is attributed to the luxury new-build market in parts of the Costa del Sol, such as La Zagaleta and Sierra Blanca in Marbella. These high-end price tags push the provincial average up, taking it to new heights this year.
The Costa del Sol average is considerably higher than the Spanish average, which stood at €281,792 this year.
Find your new build
The Costa del Sol certainly has a busy market, so if you’re looking at new construction, you need help from local experts who are up to date with the latest on the market. The Realista team has this knowledge and is able to source the best new properties in the area. Get in touch now with your requirements.
