The Costa del Sol has always been a popular place to buy property, although those wanting to sell may have struggled to find a buyer with so many homes on the market.
But this year has brought positive news, Properties in Spain Taking Less Time to Sell. For example, according to property consulting agency Aguierre Newman, the time it takes for a property to go on the market for sale and then be purchased by a buyer has been reduced by more than half.
Not only that, but the number of new builds that have recently been introduced onto the market has increased by 4.87% from last year, reaching 15,555 homes. This is the first rise since 2007.
Although houses are taking less time to sell, it can still take up to 52 months (previously 104 months) before a multi-family unit of homes/apartments is sold, and around 22 months (previously 55 months) before a buyer is found for a single larger property.
A typical apartment on the Costa del Sol would have an area of approximately 133 square metres, with a price tag of around 223,050 euro. On the other hand, the single villa-type property would measure around 425 square metres and cost 1,007,694 euro.
The prices of the bigger homes have actually gone up 39%, while the price of single-family units have stabilised and remained the same.
New promotions are being launched onto the Costa del Sol market in greater volume than 12 months ago, with 69% more than in 2015. This is showing that there is a renewed demand for residential property in the area, which has been lagging or even non-existent in the last seven or eight years.
Demand from international buyers, who make up 15.4% of the total purchases, is the reason that sales are on the up, with the Brits showing more interest than any other nationality. They are followed by the Belgians, French, Swedish and Germans.
Marbella continues to be the first place that new buyers are looking to purchase a property, although over the last two years much interest has also been shown for property in Estepona.
Prices on the Costa del Sol in general are expected to rise up to 10% between now and next year in popular areas such as Marbella, Estepona or Casares.
In general, the report from Tinsa, also shows that the average amount of salary needed to buy a home has also fallen; an average buyer now needs around six times their salary to purchase a home in Spain, two years less than in 2007/08 and four months less than two years ago.
Pre-crisis the average family in Spain would have needed 42% of their gross income to pay the first year’s mortgage repayment. In 2013 when property prices were still on a downward slide this figure fell to 33% and now stands at 21.5%. According to the report the figure is still two years above the four year rate which is considered favourable.