Saturday, March 25, 2023

Costa del Sol survives real estate recession due to high demand

costa del sol remains an oasis for real estate operations. That doesn’t mean it’s immune to rising interest rates and a real estate downturn. However, its unique features still make it an attractive and safe investment destination. not in vain, 50% of sales made in the previous year corresponded to non-residentsboth national and European.

Another distinguishing feature is half of the transactions were done in cash, either from savings, investment or sale of previous assets. Because of this, they are unaware of the rate hike. In fact, this reduction in demand and stagnation in price growth “will be much less noticeable” on the Málaga coast during 2023, underlines the CEO of the Real Estate Business School, jose antonio perezA learning center with a long history in the real estate sector.

The effect of higher rates and lower demand will be more pronounced in first-home buying and selling markets and medium and low-priced markets. In contrast, the higher volumes and premium nature “will feel to some extent both the loss of purchasing power derived from inflation and the increase in the cost of financing”, explains Tinsa’s director of research services. Christina Arias,

“On the Costa del Sol, other markets co-exist, such as high-end ones, giving much higher average yields even in mortgages”

In general terms, the Real State Business School calculates The average price of housing in the Andalusian province will increase by 4.5% until reaching an average of 344,577 euros in the current year. These values ​​tend to rise on the Costa del Sol compared to other Andalusian regions due to higher average prices. A ticket that goes from half a million to 900,000 euros when it comes to high-end products, here for luxury villas and apartments that exceed one million euros. “On the Costa del Sol, high-end markets like other markets co-exist, also giving much higher average yields in mortgages,” explains Pérez.

Hotel Cortijo Blanco is located on the Costa del Sol. Photo: Ehkos.

The first estimates from the 34th Real Estate Business School Real Estate Heart Rate Monitor confirm that “the Costa del Sol’s demand growth trend continues”. However, when referring to the real estate Golden Triangle made up of Marbella, Estepona and Benahavis, the specialist qualifies. “Due to the availability of urban land, the final land shortage is favoring the development of Estepona, infusing Manilva, Sabinillas and Salares.

zona premium

The classic Golden Triangle is still concentrated in the area between west of Marbella, south of Benahavis and east of Estepona. That’s where the real luxury market and the top brands “pull both second and third in real estate, motor, furniture, restoration and a long etcetera”.

average housing

According to the latest statistical report by Tinsa IMIE Mercados Locales, the province of Málaga, along with the Balearic Islands, was one of the two regions that registered the greatest effort to acquire a home in 2022. In fact, in Málaga the rate reached 40.7%. Even as the average household becomes more vulnerable to high inflation and rising prices, Arias rejects a major change and advocates more for a “gradual deceleration”, confident that demand will remain and housing supply will adjust. .

An environmentally sensitive investor

According to real estate developers, consultants and agents consulted by Real Estate Business School, the main investors in Costa del Sol product will remain British, German, Scandinavian, Belgian and Arab. However, it is also characteristic and ironic that the authentic Tower of Babel emerges in certain developments. In the opinion of the CEO of this real estate school, the trends anchored during the pandemic, which “boast free, private and open spaces with large terraces combined with energy efficiency, sustainability and respect for the environment”, continue.

record fourth quarter

The latest housing report from Gesvalt, a consultancy in real estate, places Málaga as the Spanish province which experienced the largest increase in house prices during the period of the last four months to 2022. The increase was 15.5%, which gives an average price. of 2,413 Euros. However, Tinsa moderated this percentage increase and cut it in half, to 7.6%. The valuation company, however, points to the city of Málaga as one of the six Spanish capitals that has appreciated most from the slippages recorded during the financial crisis. Specifically, a 52.6% increase from 2003.

Nation World News Desk
Nation World News Desk
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