Foreign Demand for Costa del Sol Homes rises steadily

While domestic demand for Costa del Sol homes in well-known resorts such as Manilva, Estepona and Casares has declined by more than 50%, the Malaga province has seen a healthy increase in demand for holiday homes from foreign buyers.

According to Raúl Garcia, marketing director of property valuation society Tinsa, foreign demand for Costa del Sol holiday homes will continue to grow until at least 2015, while domestic demand will continue to slow. Presently it has reached an almost total standstill and there is no hope demand will increase, unless the Spanish economy recovers.

Spanish investors looking for a safe haven are currently only buying low cost homes costing in the region of EUR 60,000 to EUR 90,000 each. Such homes can be rented out long-term rather than be used as holiday homes for discerning foreign tourists.
 
What’s the Attraction?

Affordability

According to Tinsa’s latest survey on the holiday homes market in Andalucía, the Costa del Sol sees more demand than any other region. Wile in Granada, Almeria and Cadiz it can take up to 16 months to sell an apartment, along the Malaga coast it takes between 8 and 18 months, depending on where exactly the apartment is located.

Tinsa explain the popularity of the Costa del Sol’s real estate over other parts of Andalucía in terms of price. Since 2007 prices have steadily fallen, reaching a 46% drop at the end of Q1 in 2013. Such a price fall makes Costa del Sol holiday homes very attractive for foreign buyers who have long held the aspiration to own a home in Marbella, Estepona, Manilva or Casares.

Stability

Previously much loved holiday destinations like Egypt, Turkey and Morocco are no longer appealing to property investors because the political and economic situation in some North African countries has deteriorated.

The Spanish government has done much to alleviate foreign buyers’ fears of further property scandals occurring over land-grab legislation or corruption in planning authority offices. A recent court ruling decided in favour of a British woman who had been tricked into buying a Marbella property that did not have the correct habitation licence. Other court rulings have shown a willingness on the side of the Spanish government to make amends to thousands of duped foreign buyers.
 
With tighter regulation of the whole buying process foreign buyers feel Spain is once more a safer option than perhaps other countries in the Eurozone.

Marbella still a Magnet

With the Sheikh Al-Thani consortium currently re-considering the La Bajadilla Port project, Marbella is still the number one spot for investors with a mind to buying prime property in prime locations. If the port expansion project does finally get off the ground, investors will have a choice of luxury apartments and town houses with some of the best views in town.

Such holiday homes will be snapped up by eager holidaymakers following in the footsteps of their “Essex” TV-heroes. Living and loving the Marbella dream is what it’s all about - during their two weeks annual leave Essex boys and girls will be spending their hard earned money on having fun in the bars and nightclubs, nail studios and hairdressers, beach clubs and designer outlets just like their TV counterparts.
 
And just like their TV heroes, Marbella tourists will have a fabulous time, once the development at La Bajadilla has been built. The popular television series depicting the lives of a group of young men and women, originally from Essex in the UK and now living in Marbella has done much to attract a very different, younger clientele to the town. The days when only retired people came to settle at the Costa del Sol are long gone.

At present, buyers and holidaymakers with a penchant for Marina-life must head to Puerto Banus and be content. Here second hand homes can be bought for around EUR 250,000 for a 2-bed apartment with access to communal pool, sun terrace and good sea views.
 
Younger buyers are looking for good, clean design and Puerto Banus property certainly offers that. With the advent of internet-based jobs comes a clientele that can now live wherever it chooses and the Costa del Sol is still number one, when it comes to relocating within Europe.