The Costa del Sol has the largest amount of new housing available in all the Mediterranean coastal areas, with 2,482 new properties. The Costa Blanca comes next with 2,110, according to data provided by ST-Valuation Society (ST) at the end of 2016. The amount of new property around the coast of Malaga surpasses that of Madrid (2,158) and Barcelona (1,072).
According to the data, the supply of new housing on the five main Mediterranean areas totals 5,594 units for sale. The Costa del Sol and Costa Blanca lead the way by a large margin. On the Costa Dorada there are 378; Costa Cálida has 345; The Costa Brava has 279. The total is even higher than the entire Community of Madrid (5,474).
“The supply of housing is scarce in large population centers like Madrid and Barcelona, where it is falling short and that means rental prices are rising significantly. This is going to generate an automatic increase in purchase prices”, says the general director of ST, Juan Fernández-Aceytuno.
The study includes any new properties constructed since 2010, whether apartments of single family homes, which have yet to receive a first-occupation licence, and which are currently being marketed. It also includes properties awarded to, or claimed by, a financial institution if the dwelling has not previously been occupied.
ST have released a report for 2017 predicting that the average price of housing in Spain will increase by 3%.
“2016 was a year of recovery in activity, wisdom and the perception of a solid real estate market on which to grow and invest,” said ST CEO Juan Fernández-Aceytuno. “In 2017, the market is expected to consolidate, but it is far from the estimated cruising speed for a country of 45 million inhabitants and whose GDP grows at a rate of 3%,” he said.
Prices and Confidence Up
ST’s report says the average price of new residential property in capital cities recuperated 1,9% during the last semester of 2016 to sit at 2.120 €/sqm. Yearly variation of prices is at 3.3% which confirms the stability trend observed in previous periods. The ST Confidence Index (buyer confidence in the real estate market) has reached 54,5 points and continues to grow over the neutral position of 50 points.
The report also highlighted the price of new residential properties. In cities with a population over 100.000 which are not capital cities prices have increased to 1.675 €/sqm. This represents a yearly variation of +1,1%.
