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Since the beginning of the pandemic, one of the biggest winners in Spanish real estate has been new property. This market sector has seen double-digit sales figures and price rises on a quarterly basis since summer 2020. And no more so than on the Costa del Sol where sales of new builds are now higher than in Barcelona.
Second highest new-build sales in Spain
The Costa del Sol has enjoyed a particularly busy year across the property sectors, but new builds have taken centre stage. To the extent that sales figures for this type of property have exceeded expectations and taken Malaga province to second place in the rankings, behind just Madrid.
In the first six months of this year, new-build sales on the Costa del Sol numbered 2,954 units, which translates to 8.9% of the total sold in Spain. In Barcelona, they totalled 2,738, 8.3% of all new properties sold in Spain. Madrid continued to lead the sector with 21.1% of the market share.
Read the guide to buying new property in Marbella.
Potential lack of supply
The rate of new-build sales on the Costa del Sol also indicates the busy levels of activity on the market. Currently, supply is practically equal to demand with almost every new property on the market being sold.
Analysts compare the number of new-build sales and completed homes to ascertain the balance between supply and demand. In the first half of this year, the Costa del Sol registered an absorption rate of 88.5%, indicating that the market has achieved equality between supply and demand.
Fifth for resale transactions
The resale sector on the Costa del Sol has also enjoyed a good year, although it stands in fifth position in terms of national rankings. Madrid takes first place with 12.9% of the market share, followed by Barcelona with 10.7%.
Resale transactions on the Costa del Sol between January and June were the fifth highest in Spain, behind the Costa Blanca in third position and Valencia in fourth. However, the 13,812 sales represented a 73% increase on the same period in 2020. As a result, analysts expect the total number of sales this year to be higher than during 2018.
Reasons behind the buoyant market
The Costa del Sol currently has one of the healthiest markets in Spain because of the high quality of life available to residents. “Businesses and individuals alike have discovered the appeal of Malaga,” explained Iñigo Molina from Colliers.
He pointed out that the Costa del Sol offers locations where you can stay long term, retire or work from home because of its good communications, infrastructure and multi-cultural society.
Busy 2022 on the horizon
The latest figures indicate that 2022 will follow in the tracks of 2021 and registered solid sales for Costa del Sol real estate. “We detect residential demand that although it was slightly retracted during 2020 is now healthy,” said Molina. He added that Colliers see huge potential for growth as soon as the situation improves and there are fewer limitations on international travel.
Your new build on the Costa del Sol?
If you’re thinking of buying a new property on the western Costa del Sol, take a look at our portfolio of prime listings. Or get in touch with our friendly team for expert advice on the new build to suit you.