As we move further into 2023, the real estate market in the Costa del Sol region of Andalucia, Spain, continues to experience steady growth. With a booming tourism industry and a desirable lifestyle, it’s no surprise that the demand for property in this region remains high.
One of the main factors driving the growth of the real estate market in the Costa del Sol is the region’s popularity among foreign buyers. According to the Spanish Land Registrars Association, foreign buyers accounted for 25% of all property purchases in Andalucia in 2022. The most significant number of foreign buyers came from the United Kingdom, followed by France, Belgium, Germany, and Scandinavia.
New Builds In Demand
In terms of the types of properties that foreign buyers are looking for, there is a significant demand for new builds, particularly in prime locations along the coast. This trend is reflected in the data from the Ministry of Development, which shows that the number of new build properties completed in Andalucia in 2022 increased by 12% compared to the previous year.
Despite the increase in new builds, the supply of properties for sale remains relatively limited. This shortage of supply is driving up prices, particularly in the most desirable areas. The average price per square meter for property in Malaga province, which includes the Costa del Sol, increased by 5.3% in 2022, compared to the previous year. This increase is slightly higher than the national average of 4.6%.
One of the reasons for the limited supply of properties for sale in the Costa del Sol is the difficulty in obtaining planning permission. There is a shortage of available land in the region, and the authorities are cautious about granting planning permission for new developments. This caution is understandable, given the importance of preserving the natural beauty of the region.
Another factor contributing to the high demand for property in the Costa del Sol is the region’s excellent infrastructure. The region is well connected, with Malaga airport providing direct flights to major European cities. There are also excellent road and rail links, making it easy to travel within the region and beyond. The area has plenty of world-class golf courses, marinas, and other sports facilities, as well as excellent restaurants and bars.
If you’re considering buying property in the Costa del Sol, there are a few things to keep in mind. Firstly, it’s important to work with a reputable estate agent who can guide you through the buying process and help you find the right property for your needs. Secondly, it’s essential to do your research and make sure you understand the local property market and the buying process in Spain. Finally, it’s a good idea to visit the area before you make a purchase to get a feel for the different neighbourhoods and to see the properties in person.
In summary, the real estate market in the Costa del Sol region of Andalucia continues to experience steady growth in 2023. Foreign buyers are driving demand, particularly for new builds in prime locations. Prices are rising, reflecting the limited supply of properties for sale in the region. Despite this, the Costa del Sol remains a desirable destination for those seeking a fantastic lifestyle and excellent infrastructure. If you’re considering buying property in the area, it’s important to work with a reputable estate agent, do your research, and visit the area before you make a purchase.