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Here you will find news, views, events and information relating to real-estate in Spain.

Buying a New Property or a Resale Property

admin | 15th May 2023 | Andalucía, Buying, Costa del Sol, Holiday homes, Málaga, Marbella, New Developments, Off-Plan, Property For Sale, Property Market, Spain

The Costa del Sol offers a wide range of properties to suit all

Planning to buy a property on the Costa del Sol? Choosing between a resale property and a new one is a crucial decision. Below, we’ll explore the pros and cons of each option to help you make an informed choice that suits your preferences and needs.

Resale Properties

Pros:

Established Locations: Resale properties on the Costa del Sol are often situated in well-developed neighbourhoods with established infrastructure, offering a wide range of amenities and conveniences.
Lower Price Points: Resale properties generally come with more affordable price tags compared to new ones, providing an opportunity for budget-conscious buyers to get more value for their money.
Established Communities: Buying a resale property means becoming part of an existing community, allowing for a sense of belonging and social opportunities. You can also enjoy shared amenities like pools and sports facilities.
Reduced Waiting Time: Unlike new properties that require construction time, resale homes are usually ready for immediate occupancy. This means you can move in soon after completing the necessary legal procedures.
Potential for Renovation: Resale properties offer the flexibility to customize and renovate according to your preferences, allowing you to create your dream home on the Costa del Sol.

Cons:

Higher Maintenance Costs: Older properties may require more maintenance and repairs compared to new ones. It’s important to factor in potential renovation and upkeep expenses before finalizing your purchase.
Limited Warranty: Resale properties may not come with warranties for structural elements or appliances, which are often offered with new properties. This could result in potential maintenance and repair costs.
Outdated Features: Some resale properties on the Costa del Sol may have outdated features, decor, or technology that may not align with your tastes and preferences. Budgeting for upgrades may be necessary.
Less Energy Efficiency: Older properties might not meet the same energy efficiency standards as newer constructions, leading to higher energy bills and a less environmentally friendly footprint.

New Properties

Pros:

Modern Amenities: New properties on the Costa del Sol often boast the latest amenities and facilities, enhancing your overall living experience. From gyms and spas to communal areas, developers focus on modern design and technology.
Energy Efficiency: New constructions meet stringent energy efficiency regulations, featuring advanced insulation, efficient heating/cooling systems, and smart home technology. This translates to lower utility bills and a reduced environmental impact.
Customization Options: When purchasing off-plan or during the construction phase, you can often personalize certain aspects of your new property. From finishes and fixtures to layout modifications, you can tailor the space to your liking.
Long-Term Cost Savings: New properties generally require fewer immediate repairs or renovations, saving you money on maintenance costs during the initial years of homeownership.

Cons:

Higher Price Tags: New properties on the Costa del Sol often come with higher price tags due to their modern features, amenities, and construction quality. They may require a larger initial investment.
Construction Delays: Despite developers’ efforts, construction delays are not uncommon, which can lead to frustration and uncertainty about the completion date of your new property.
Uncertain Surroundings: Buying in a new development means living amidst ongoing construction and development. Surrounding infrastructure and amenities may take time to fully materialize.
Limited Location Choices: New developments are typically found in emerging areas that may lack the established charm and character of older neighbourhoods. If you prefer a more mature setting, a resale property may be a better fit.

We hope this helps with your choice! Feel free to browse our wide selection of both New Property and Resale Property For Sale all along the Costa del Sol. And of course, contact us now if we can help further.

info@marbellaforsale.com | +34 952 907 386

Rental Prices Breaking Records

admin | 27th April 2023 | Andalucía, Costa del Sol, Málaga, Marbella, News, Prices, Property Market, Rental Property, Renting, Spain

Tenants are struggling with rising rental costs

In Spain, the price of rental housing in April once again broke historical records, standing at €11.55/m² per month. This situation, which has been repeating itself since May 2022, has led the price not only to break records, but also to exceed the price recorded during the 2007 real estate bubble, by 14.1%, according to data from Fotocasa. The current average rental price exceeds that recorded 15 years ago, which stood at €10.12/m², when the highest prices in the series were unanimously reached throughout Spain.

“The average rental price has never been so high in Spain. If what was experienced during the bubble of 2007 seemed bulky, now it is more so. It is necessary to highlight that a bubble situation cannot occur in the rental market, since bubbles only occur in the prices of durable assets and in actions that provide long-term income. However, we can refer to the current rental situation as a moment of excess prices when we appreciate how wages have not grown at the same rate as housing, which produces a very substantial risk of inaccessibility to housing“, explained María Matos, spokesperson for Fotocasa.

Autonomous Communities

All the autonomous communities, except Asturias, Aragón and Castilla-La Mancha, presented a price higher than that registered in 2007. In 11 of the 17, the percentage increases reached double digits. In addition, many showed annual increases of more than 50%. They include the Balearic Islands (62.3%) and the Canary Islands (57.3%). And those that show values above 20% increase include Madrid (37.6%), Navarra (32.4%), Valencia (30.8%), Catalonia (26.0%), Castilla y León (25.8%), and Extremadura (21.3%). In Andalucia, prices have increased by 13.1% since 2007.

“The fact that in some regions the rental price is so far from what was presented 15 years ago is very relevant. We see how the most stressed communities are 60%, 50%, 40% or 30% above the previous maximum price, and the most remarkable thing is that this huge gap has developed in just one year. During 2022, most of the autonomies broke a price record by reaching 2007 levels, but they did not stay at that point, but have continued to increase their prices until they significantly exceed those registered in the middle of the bubble“, Matos explained.

Capitals

In 26 of the 27 provincial capitals, the average cost of rental property exceeded those registered in 2007. This means that 96% of the capitals in Spain have reached maximum prices again and present a price higher than that of the 2007/2008 real estate bubble.

The capitals with increases of more than 50% stand out: Malaga capital (61.7%), Las Palmas de Gran Canaria (59.9%), Palma de Mallorca (58.2%). Also those that show increases above 20%: Valencia (45.4%), Barcelona (37.1%), Alicante (36.3%), Ourense (32.4%), Madrid (32.4%), Salamanca (31.9%), León (28%), Huelva (27.1%), A Coruña (26.8%), Santa Cruz de Tenerife (21.6%) and Bilbao (20.2%).

Costa del Sol Real Estate in 2023

admin | 12th April 2023 | Property For Sale

Malaga is popular with foreign buyers

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.

Well Connected

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.

Property Prices in Málaga Exceed 2007 Records

admin | 29th March 2023 | Andalucía, Buying, Costa del Sol, Málaga, Marbella, News, Prices, Property For Sale, Property Market, Rental Property, Renting, Spain, Statistics/Figures

Malaga is seeing record prices for sale and rental

Record prices for sale and rental in Málaga

The city of Málaga has once again seen records broken in both the prices of property sales and rental markets. Málaga capital closed February with an average cost per square metre of €2,932, while in January, the average rental price reached €13.52 p/m². Both of those average prices exceed the highest prices seen in 2007 when both markets saw new record prices set.

Buying in Málaga

Both markets show significant year-on-year increases, double-digits. In the ranking for property for sale, Málaga is the second placed city, after Palma de Mallorca, in terms of annual increases, seeing a massive 18.2% rise since the same month in 2022. Also noteworthy, this increase is the highest single increase in the entire history of records, even beating the previous high of 17.4% seen in January 2006, just prior to the collapse. The rest of Spain, while catching up, remains around 29% below those historic highs.

The current price (€2,932 p/m²) is 5% above the previous record registered during the bubble of 2007, when prices reached €2,778 p/m².

“The price of housing reached record figures again with the greatest acceleration seen in the last 17 years. We have never before seen such a large price increase in such a short period of time. This increase brings us back to 2006 levels, prior to the real estate bubble when the cost of housing suffered a great increase. These significant increases coincide with the change in monetary policy due to the rise in interest rates by the ECB. Buying demand has resurfaced and society is experiencing a ‘buy now or never’ moment before mortgages tighten even further. A situation that complicates access to housing, since Málaga has practically no public social housing stock, which further aggravates the difficulties“, commented María Matos, Director of Studies and Spokesperson for Fotocasa.

Renting in Málaga

What is worrying the experts more than the sales increases are the increases in cost of property to rent in which the annual increase has exceeded 30%, with a year-on-year increase of 31.3% seen at the end of January 2023, also the highest single increase seen in the entire history of records.

At the end of February, the increase is slightly more moderate, yet still significant, at 23%. Since February 2022 there have been continuous double-digit increases seen on a monthly basis. In fact, rental prices have risen consistently since October 2021.

Since then, average rental costs per square metre have risen from €11 to more than 15 euros. Specifically, from €11.93 p/m² in February 2022, at €15.03 p/m² in February 2023.

The cost of a lease is now 57% above the price of 16 years ago, when it stood at €8.43 p/m². Therefore, the current cost of housing in the municipality of Málaga (€13.22 p/m²) is significantly higher than the price of 2007, when unanimously throughout Spain the highest prices in the historical series were reached.

“The rental price in Málaga, as in Andalusia and in practically all of Spain, reached its maximum historical level, with an upward trend. Since the recovery from the financial crisis, in 2015, Málaga has followed the same trend as the Spanish average, but in a more accentuated and intense way and presenting much more pronounced increases. Although 2022 marks a milestone in the evolution of this market with the reduction in housing supply by more than 30%, it is the main cause that pushes the price up, since each time the gap between supply and demand is more considerable. The rage to sell, the return of tourist homes to the holiday market and the over-regulation of the market, considered as such by the owners, have drastically contracted the stock. This situation added to the increase in inflation, which influences the homes that come on the market, makes access to housing even more difficult“, explained spokesperson María Matos.

2022 Was a Record Year For Property Sales

admin | 9th March 2023 | Andalucía, Buying, Costa del Sol, Marbella, New Developments, Prices, Property For Sale, Property Market, Spain

New-build homes made up 18% of sales in 2022

Data released by the INE shows that 2022 was a record year for property sales, reaching almost 650,000 sales closed. The figures for the end of the year showed a 14.7% increase over the previous year. The sharp increase comes despite five rate hikes and a change in monetary policy from the ECB, showing there is still desire for property in Spain and the market is very strong.

In December 2022, there was over 43,000 transactions closed, taking the total for 2022 to 649,494. This is the highest figure since 2007. It seems that far from slowing down purchasing, the rate hike has actually accelerated it, at least temporarily. The comparison with 2021, which was also a record year with over 550,000 transactions, was surpassed by a massive 14.7% in 2022.

Despite the great dynamism, it must be taken into account that the purchases closed in December were not yet subject to November interest rates, because they are operations that take an estimated time of between 60 and 90 days, between the signing of the deposit and the granting of the mortgage, so it is likely that the sales signed in December maintained an interest rate similar to that of October when the Euribor had not yet reached 3% and that and slowing had yet to take effect since they are operations had already been previously agreed.

New Home Sales Increased

One of the most interesting data points was that new homes made up 18% of the total sales, 2.6% more than in 2021. “The new-build home is experiencing an unprecedented boom since the outbreak of the pandemic. However, we may find ourselves with a serious problem of rising prices, if the demand continues so latent. Not only because of runaway inflation, which affects the cost of materials, production and logistics, which has slowed down and paralyzed some promotions, but also because of the strong and solvent purchasing demand given the very low production levels of the brand new house“, explains María Matos, Director of Studies at Fotocasa.

With the level of sales reached, 2022 was only 16% short of the figures seen in the height of the bubble back in 2007. The figures for December do however show a slight slowdown compared to the rest of the year. This may be indicative of a rush to buy before the interest rate changes took effect. Also, we can’t ignore runaway inflation that is hitting buyers’ pockets and their ability to save, which is being diminished by large increases not only in energy and fuel, but also in shopping basket.

In the long run, people will find it harder to save enough for the purchase or a house as they have been before, and this is likely to have a knock-on effect in the sales figures later this year. Also, successive rate hikes will make it harder to obtain credit and make it more expensive which will exclude a significant number of prospective buyers.

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