The need to start constructing new off plan housing projects on the Costa del Sol

The need to start constructing new off plan housing projects on the Costa del Sol

Specialists are now saying that construction needs to kick-starting house development projects in specific towns in Malaga province, Marbella area has the least amount and where the new housing stock could do with a boost as it still currently lies at a minimal level compared to second hand homes.

They also warn the urgency to start building properties in places like Malaga city, Benalmadena and Torremolinos as soon as possible, before the housing stocks dry up.

These are only a few of the conclusions drawn in the 2015 Tinsa valuation company’s most recent report on housing in Spanish coastal regions.

Crain's are returning to the Costa del Sol 

The worst years of the crisis has left vast pockets of houses in many coastal regions of Spain and selling them in such a slow market proved to be quite challenging. In the last few areas, however, the circumstances have changed. In Malaga province, for instance, the Tinsa report indicates that Marbella and Benahavís have now been in a recovering process for same time and each of these areas has had an exceptionally blooming real estate recovery.

As for Marbella, the report echoes something that local builders and developers have been saying for quite a while: that there is only a small number of remaining unsold housing stock in the area, and these have been hard to sell, because foreign clients, look for something more stylish, and exclusive and modern, but have found many don’t fit their buying criteria.

During the previous year, Marbella property for sale turned into one of the five major places to buy property with recording the highest amount 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 area also relished extra-ordinary levels of growth, with an unbelievable surge of 193%.

A large portion of the properties that were purchased were by foreign investors mostly northern Europeans, who without them would have made the crisis even worse. According to Tinsa’s assessments, 60% of property sales in Marbella and Manilva were bought by investors from the UK, France, Sweden, Belgium, Ireland Switzerland, Norway, North Africa or the Persian Gulf.

The insufficient housing stocks that the experts have been warnings about for some time, by some new housing projects where upon the work is just starting and which will be sold off and understood that there will be more new projects planned, in view of the significant amount of land which is being obtained and bought by investors and developers alike. Which is a very positive sign moving forward?

The Tinsa report reveals that this also mirrors the current situation in Mijas, Estepona and Benhavis. A promising forcast 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 determined.

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 reduce..

Between Torremolinos to Mijas there has been a rather encouraging scenario in that there is lots of interest among investors in the unfinished developments and lots of the housing stock has been slowly selling due to the price decreases over time, making them more attractive as buying property in the Costa del Sol area will always be in demand.

Also some property developments on the Costa del Sol which had been halted for financial reasons have started back up, and some others that have been completely built have been auctioned off by the banks.

It has been the Spanish and foreign developers who have been reviving the housing development projects in the areas between Marbella and Manilva.

The Tinsa reports does suggest great ‘signs of recovery’ in Marbella and Benahavís and ‘signs of improvement’ in adjoining Casares, Manliva and Estepona where lies a larger stock of housing, compared with that in Marbella which is basically has none left.

One important factor demonstrating the level of confidence portrayed by investors in these areas is the fact that in the most property sales in Marbella and Benhavis, have been paid by cash in 70 per of house purchases.

The conclusion by the report shows that buying property in the Costa del Sol will always be in demand by foreign buyers and the whole area of the coast will continue to be in demand no matter what financial restraints are thrown at it.

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