Life at the Costas has become more expensive

According to a recent study conducted by the Consumers and Users Association (OCU), life at the Costas has become more expensive. The weekly grocery shopping trip has gone up by 2.9% in the last 12 months, OCU stated, and there is far less price difference between different supermarket chains now than before.

However, knowing where to shop can save you a substantial amount of money - on average around 836 euros per annum, a 22% drop from 2012, when shoppers still had greater choice of where to find bargains. OCU compared prices of 1,164 shops across Spain and found that budget supermarkets raised their prices while the usually more expensive stores cut theirs.

Although the historic low levels of interest rates have meant homeowners with a mortgage have typically enjoyed lower repayments of ca. EUR 9.00 per month, saving around EUR 100 per annum; other costs have spiralled, including electricity, water, property tax and VAT on a variety of day-to-day shopping items.

On average it is still cheaper living in Spain than in other EU countries, though, particularly if you’ve bought a home at the Costa del Sol, where heating costs are low thanks to 300 days of sunshine throughout the year and a far milder climate than in other parts of Spain.

House prices are also still falling in most parts of Spain, despite a surge of international buyers coming forward this year to snap up bargains in Marbella, Nerja, Estepona or Malaga itself. Unlike the UK or France, in Spain buyers get rather a lot of house for their money, too.

For example: a budget of EUR 499,000 will buy a 3-bed modern villa in Benalmadena, complete with private pool and mature garden, terrace, fitted kitchen and utility room. Benalmadena is a 30 minute drive from Marbella and within a 10 minute drive to Malaga Airport.
 
Also in Benalmadena, a budget of EUR 495,000 will purchase a spacious modern townhouse with 4 bedrooms and great sea views, private garden and parking for two cars.

Neighbouring Fuengirola is slightly more upmarket and therefore more expensive. Here a budget of ca. EUR 700,000 will purchase a 3-bed luxury beach front penthouse with amazing sea views, while a 5-bed townhouse can be bought for around EUR 485,000 to EUR 380,000, depending on how far out of town the property is located.

For investors this means that the Costa del Sol is still a great opportunity, especially when considering the latest findings on increases in tourism. Andalusia is in third position, after the Balearics and Catalonia, with regard to attracting tourism. This year Andalusia tourism has registered a year-on-year growth of 15.3%, which represented tourism revenue coming into the region of EUR 1.15bn in August. This was largely due to visitors from the USA, Belgium and Scandinavia discovering the delights of the Costa del Sol.
 
With hitherto untapped tourism markets of China, Russia and India still to mature, the long-term future for Andalusia’s economy looks far better than it has done since the property market collapsed at the beginning of 2008.

For buyers looking for a holiday or semi-permanent home there are always great amenities on their doorstep and fantastic events happening throughout the year that make the Costa del Sol and resorts like Marbella such a great option for a property purchase. Although some tourist attractions such as waterparks or amusement parks close their doors for the winter, there are still plenty of things to do and see.

As this is the season of autumn ferias along the Costa del Sol, shoppers have plenty of opportunity to find some bargains at fairs and markets. From the Guardia Civil Day celebrated at Tivoli World in Benalmadena to the Mule Fair in Arenas, from the Virgen del Rosario in Benaohan and Nerja’s feria or the cattle fair hosted by Villanueva - there’s something to interest everybody at the Costa del Sol.
 
One-bed resale apartments in Marbella can start at prices below EUR 100,000, and with a little research one can find brand new 2-bed luxury apartments starting from EUR 178,000, in golf developments as well as beachfront property.