There are 4.4 Million unsold Homes in Andalucía

According to the Ministry of Development, Andalucía accounted for 4.4 million of unsold homes in Spain at the end of 2012 and since then, not a lot has changed in terms of reducing housing stock. The majority of these unsold homes are key-ready new homes, but the sales trend in the first 6 months of this year has been for resale housing. Prices for resale homes rose on average by 0.7% across Spain in July, compared to the previous month, according to property portal Fotocasa.es. Formerly unaffordable homes at the Costa del Sol have suddenly become very affordable for buyers from countries with a stable economy, such as Norway or Sweden.

After 41 consecutive months of price falls, the average national square meter price reached EUR 1,773 in July of this year, while in Andalucía prices for homes remain static, apparently fixed at EUR 1,514 per square metre. This reflects the huge number of unsold homes, both new and resale, at the Costas, where even the advent of Russian, Chinese and Scandinavian buyers has so far had little impact on the housing surplus.

The national average square metre price for resale houses measuring between 60 and 100 sqm rose by 0.9%, standing at EUR 1,700 per square metre in July.

There are certainly plenty of bargains around at the Costa del Sol. In Marbella’s sought after Golden Mile it is possible to buy a luxury resale apartment for less than EUR 620,000, while elsewhere, such as neighbouring resort Benalmedena for example, a brand new 2-bed, 2-bath apartment in a gated golf community can cost as little as EUR 170,000.

Benalmedena is located some 12 km to the west of Malaga, where the nearest airport is situated, offering great accessibility thanks to budget airlines. Located roughly mid-way between the better known resorts of Torrremolinos and Fuengirola, Benalmedena covers an area of just over 27 square km, sandwiched between the sea and the Sierra de Mijas.
 
It is a busy tourist resort with a permanent population of just over 61,000 inhabitants, offering those who come on holiday fantastic attractions like two aquariums such as the Sealife Centre and the Tivoli World amusement park, the a cable car and wonderful Selwo marina with dolphins, seals and penguins, not to mention a glamorous casino and vibrant nightlife.
 
For buyers unable to afford Marbella’s prime property price tags, Benalmedena is a good alternative, as it offers plenty of choice, good prices and a large existing expat community spanning several different nationalities.
 
Benalmedena’s attractions are numerous: the teleferico or cable car runs up to the peak of Calamorro Mountain, which boasts panoramic views that include Gibraltar and parts of the Sierra Nevada as well as the North African coastline. The recently created Parque Paloma, a landscaped park with animals roaming freely and a splendid lake in the centre, is another sign that Benalmedena is trying to establish itself as a home hunter destination to be reckoned with.

Meanwhile, in Marbella’s eastern districts prices are still falling, and in Elviria for example it is still possible to buy a brand-new 2-bed apartment close to Elviria Beach for under EUR 180,000 and have free unrestricted use of the facilities at El Soto Golf Club. The area has beautiful pine and oak forests and has been declared a natural biosphere reserve by UNESCO, making a property purchase a good long-term investment, since further development will be greatly limited in this part of Marbella.

Two further golf courses, both within a 10 minute driving distance, add to the attraction. Elviria is close to two of the Costa del Sol’s most famous golf courses, namely La Cala Golf Resort and Santa Maria Golf and is also within a short drive of the famous Nikki Beach Club, a favourite hang-out destination for international celebrities.

The beaches of Elviria, Bahia de Marbella and Cabopino offer water babies of all ages plenty of scope for swimming, sunbathing, snorkelling and windsurfing, while determined shoppers can find everything they need close at hand in the villages of Cala de Mijas and Calahonda.