The Tinsa valuation company points one more year to the Costa del Sol as one of the areas of the Spanish coast where there is a “clear recovery” of the housing market, which translates into a sustained increase in sales, prices and The projects for new construction. The report «Housing in Costa 2019», presented yesterday in Malaga and with data from the entire Spanish coast (in which the weight of holiday homes is very significant), places the entire coast of the province among the most dynamic bands.
Tinsa explained that the strip between Marbella and Manilva (which was the first to begin to reactivate four years ago) and the one between Torremolinos and Mijas are the ones that currently have the highest rates of activity, while in the Axarquía, where recovery consolidated since 2017, it already has considerable levels.
The enormous activity of the Malaga coast is reflected in the fact that two locations are placed one more year among the five of the Spanish coast (excluding those that are provincial capitals) with the highest number of sales in 2018. Specifically, Marbella is the third in the ranking with 4,077 operations after Torrevieja (Alicante), leader with 5,256, and also Alicante’s Orihuela (4,080). Mijas is the fourth with 3,047 and Gijón the fifth with 3,042. Estepona, with 2,515, and Benalmádena, with 2,372, also appear in prominent positions.
Malaga also leads the activity on the Andalusian coast. In fact, four of the five municipalities that sell more housing in the community (excluding capitals) are from Malaga: the first is Marbella, followed by Mijas, Estepona, Benalmádena, and Almeria Roquetas de Mar).
The Malaga coast also dominates in prices, with three locations in the top 5 of the Andalusian coast. Thus, the Andalusian coastal town with higher prices in the first quarter of 2019 is Marbella (2,231 euros per meter), ahead of Tarifa (2,209), Nerja (2,095), Cádiz (1,943) and Fuengirola (1,907).
Another significant fact is that eleven of the fifteen locations where prices have risen the most in the last twelve months are from Malaga. Casares, with 17.6%, is the first on the list, Torremolinos the third (16.1%), Mijas the fourth (15.3%) and the capital is fifth (14.9%). Estepona (13.7%), Fuengirola (13%), Rincón de la Victoria (10.4%) and Marbella (10.2%), also show significant increases, together with Vélez-Málaga (9.3%), Benalmádena (9%) and Manilva (7.2%). “The Costa del Sol continues to stand out as the most dynamic area in the Andalusian region,” said Tinsa’s commercial director, Pedro Soria.
As maximum values in Malaga, Tinsa points out that there are multi-family homes on the beachfront in the strip from Marbella to Manilva that reach 14,000 euros per meter (Golden Mile and Puerto Banus) and luxury villas that reach 20,000 euros per meter . In the Torremolinos and Mijas strip, the peaks are 3,500 euros per meter in homes on the promenades (there is no offer of villas for sale). In the Axarquía, the multi-family dwelling records maximum of 3,900-4,200 euros per meter on beachfront flats in areas such as Nerja (Burriana, El Parador and the Balcón de Europa area).
Evolution of values
However, the strong adjustment suffered during the crisis is still evident in the differences in value compared to a decade ago. In Casares the average price is still 45.5% below 2007, in Manilva 46.7%, in Vélez-Málaga 38%, in Mijas 34.5 and in Torremolinos 33.8%. The greatest recoveries occur in Marbella and the capital (differences of 26% and 31.3% respectively). Tinsa also rules out that a price “bubble” is taking place, since bank financing is much more controlled than at the time of the boom.
The consultant said that the forecast for this 2019 is that the sector continues with all its indicators upward although with growth rates already more moderate than in previous years. «Everything indicates that, as in the whole of the Spanish residential market, we are reaching an equilibrium point, with local qualifications, which will give way to the stabilization of the main variables, with more increases in demand and a trend of price moderation, ”said Soria.
«The Andalusian Mediterranean coast continues to show the greatest increases in price and general activity, especially the Costa del Sol, and, more specifically, Marbella and nearby locations. The promotion of new construction is intense in the area, which is a focus of attraction for foreign demand with a high average purchasing power, ”he said. 30% of the homes that were bought last year in Malaga were acquired by foreigners.