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What’s the general mood moving forward?
While the speakers at InmoForum Malaga differed in some aspects, they all agreed on one: their optimism for the future. They underlined that the current circumstances are just right – growth in GDP and purchasing power among buyers who have increased their savings since the start of the pandemic. Spain’s GDP is expected to increase by 6% this year and savings levels are at the highest for the last four decades.
Ignacio Peinado, President of the Malaga Developers Association (APM) expressed his confidence that sales would continue to rise. “New-build supply is gradually increasing,” he said, “and foreign buyers are very interested”.
Where are property prices going?
There was general agreement at the conference that prices for real estate on the Costa del Sol will continue to rise over the next few months. Pent-up demand, increased purchasing power and low-interest rates combine to create the perfect scenario for price pressure. And as the pandemic has proved, property investment is literally as safe as houses.
What are the challenges for the Costa del Sol property market?
One of the main issues currently facing the market lies in new-build supply. There’s currently big demand, particularly from foreign buyers, and the experts highlighted the importance of ensuring enough supply to satisfy this demand without excessively upsetting the balance between the two.
Specifically in Malaga, the conference highlighted the need for sufficient development land to satisfy demand. This lies principally in the commercial property sector, specifically in logistics and offices.
How have buyer requirements changed?
As has been the case worldwide, the Costa del Sol property market has seen a shift in buyer preferences since the outbreak of the pandemic. Many people realised that their current home didn’t meet their requirements and as a result, wanted to move. New home requirements include more living space, more natural light and flexible rooms with the ability to adapt to home offices or schools.
According to Pedro Soria, Head of Sales at Tinsa, the new-build property has benefitted most from this change in buyer requirements. In addition, new homes come with greater energy efficiency and sustainable elements, not generally found in older resale properties.
As a result, the two markets, resale and new-build, are moving at different speeds. Soria forecast a more stable immediate future for new developments on the Costa del Sol because the sector has adjusted its supply to the demand.
How are sales going to perform in the near future?
However, Soria pointed out that although the new-build market is generally performing better than the resale with stronger figures for sales and prices, the future looks bright for the entire sector. He said that the housing market has now recovered pre-pandemic levels in terms of sales. The first half of this year, for example, registered the best sale figures since 2008 with new builds at the helm.
What are buyers looking for on the Costa del Sol?
The Costa del Sol market has a strong presence of both first and second-home markets, although each has different requirements. Soria explained that first-home buyers want higher-quality homes in terms of square meterage, comfort and energy efficiency.
Second-home buyers tend to be foreigners and they are principally attracted to the quality of life on the Costa del Sol. In addition, the competitive property prices when compared with other European countries also appeal to international buyers.
Marbella is a case in point. The property market in the resort has experienced a particularly busy summer with solid demand for high-end villas.
Like the low-down on Costa del Sol real estate? Get in touch with our friendly team who have been helping foreigners buy homes in the area since 1992 – they would love to help you find yours.
