The need to start constructing new & off plan property projects on the Costa del Sol.

The need to start constructing new & off plan property projects on the Costa del Sol.

                                                         Crain's returning to Costa del Sol                                               Specialists are insisting on kick-starting house development projects in specific towns in Malaga province, with Marbella needing the most, where the stock of new housing currently lies to a minimal level compared to resale property for sale in the Costa del Sol

They also warn that it is urgent to start building properties in places like Malaga city, building property for sale in Benalmadena and Torremolinos as soon as possible, before the stock dries up.

These are only a few of the conclusions drawn in the Tinsa valuation company’s most recent report on housing in Spanish coastal regions.

The grimmest years of the crisis deserted them vast pockets of housing units in many seaside regions of Spain and selling them in such a slow market proved to be quite challenging. In a few areas, however, the circumstances are now altogether different. In Malaga province, for instance, the Tinsa report indicates that Marbella and Benahavís are now in a recovering process and each of them has an exceptionally blooming real estate scenario.

For the situation of Marbella , the report echoes something that local builders and developers have been saying for quite a while: there is a small number of remaining housing stocks in the area, and these will be troublesome to sell because foreign clients, who are looking for something posh and stylish, don’t find them appealing.

During the previous year, property in Marbella for sale turned into one of the five coastal towns with the maximum number of property sales, as shown by the data published by the Ministry of Public Works, with a total of 3,997 (28.7% higher than the year before). There was also a whopping 101% rise in new property transactions. Manilva also relished extra-ordinary levels of growth in this aspect, with an unbelievable surge of 193%.

A large portion of the properties were purchased by foreign investors, who assumed an undeniably essential part amid the crisis. According to Tinsa’s assessments, 60% of property sales in Marbella and Manilva properties for sale were bought by investors from the UK, Ireland, Norway, Sweden, France, Belgium, Switzerland, North Africa or the Persian Gulf.   

The insufficiency of housing stocks, about which the experts have been issuing warnings for some time, is compensated – albeit just from early on – by some new housing projects whereupon the work is just starting and which will be sold off-arrangement. It is likewise apparent that all the more new projects are planned, in view of the significant amount of land which is being obtained.

The Tinsa report reveals that this mirrors the current situation in Mijas, Benhavis and property for sale Estepona. A promising imagery indeed but it coincides with the latest controversy triggered by the dissolution of the Urban Plan for Marbella and the Coastal Regulation Plan.  

The effects these will have on the progress of forthcoming development projects are yet to be estimated.

In Malaga province, the Tinsa report recognises three altogether different regions. In La Axarguia its prices are balancing out and demand from Spanish buyers is reigniting. In the surrounding communities, there is a lot of new housing stock, in spite of the fact that it is starting to diminish. No new housing initiatives seem to have undertaken, and the minor market activities noticed there has been in housing projects which were demolished during the financial crisis period.

The circumstances in the area ranging from Torremolinos to Mijas on and the western coast are rather encouraging on the grounds that there is a developing interest among the investors in the unfinished developments there. In this regard, the pocket of accessible property is ‘relevant’ but ‘continually decreasing’, for the most part because of a fall in prices.

Also here, not all the property constructions which were halted for financial limitations have been revived, despite some which had practically been completely built have been auctioned off by the banks.

It was the Spanish and foreign developers who revived the housing development projects in the areas between Marbella and Manilva.

The Tinsa reports distinguishes ‘signs of recovery’ in Marbella and Benahavís and signs of improvement in adjoining Manliva Estepona and property for sale in Casares where lies a larger stock of housing, compared with that in Marbella which is basically extinguished.

One essential figure which perfectly demonstrates the level of confidence portrayed by investors in these areas is the fact that in the most consolidated places such as Marbella and Benhavis, 70 per cent of property acquisitions are paid for in cash.