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As many of us who work in the real estate sector on the Costa del Sol know, last year was a bumper one for new builds. And the latest figures from the provincial Architects Association confirms this fact – new-build completion on the Costa del Sol skyrocketed by 22.5%. In addition, new licence applications went up by 15.5%.
Solid year for new-build completions on the Costa del Sol
According to the Colegio de Arquitectos, 7,552 new homes were completed on the Costa del Sol during 2021. The figure translates to a 22.5% increase from the previous year. More importantly, however, it’s a massive 67% more than 2019, before the pandemic.
The head of the Architects Association, Francisco Sarabia, believes that the 2021 figures “generally reflect the economy’s recovery”. In addition, he underlined that the market trend is clearly up, after the “pause” at the start of the pandemic.
Solid year for new-build licenses on the Costa del Sol
2021 also saw a significant rise in the number of building licence approvals. There were 5,820 in total, up 15.5% compared to 2020. However, the figure is below that registered in 2019 when developers and private builders obtained approval for over 7,100 licences on the Costa del Sol.
Nevertheless, 2021 consolidated the growth of new-build projects on the Costa del Sol. The last quarter of the year was particularly intense when licence approvals went up by 38% compared to the same period in 2019. However, analysts are reluctant to confirm whether this is a temporary trend or a sign of new acceleration in the new-build market.
Busiest markets for new homes
As has been the case over the last few years, Malaga city and the western Costa del Sol dominate the new-build market on the Costa del Sol, both for completions and new projects. Activity elsewhere is relatively low with a few exceptions.
When it comes to new-build completion on the Costa del Sol, Malaga city led the market with 2,006 completed properties. Estepona took the second position with 1,237, followed by Fuengirola (687) and Marbella (681).
Malaga city also took the lion’s share of approvals, with 1,683 units getting their building licences. Fuengirola was next with 610 while Mijas (553), Marbella (533) and Estepona (340) completed the top five locations.
New homes for luxury market
The latest statistics for the new-build market on the Costa del Sol show that most new construction focuses on the high-end sector. The majority of development caters for the luxury market as the figures for house prices clearly show. Check out our selection of properties in Estepona
Property prices have risen by 7.7% generally on the Costa del Sol over the last 12 months and the average square metre price now stands at €3,140. However, these figures hide much higher averages in locations such as Marbella, where prices rose by 9.5%.
Unsurprisingly, mortgage loans have also risen on the Costa del Sol. The latest data from the Spanish Statistical Institute (INE) point to €160,713 as the average amount borrowed for a property purchase last November. As a result, the figure now stands only slightly below the record set in 2007 when the average loan on the Costa del Sol was €165,000.
Discover the best new-build projects on the Costa del Sol
If you like the sound of buying an off-plan or a brand-new home on the western Costa del Sol, you’re in the right place! We showcase all the best developments in Estepona, Benahavis and Marbella. Take a look at our selection now or get in touch with our expert team, who will be only too happy to find the new build to suit you.