Spain Info March: Market report Costa Blanca, Mallorca, Costa del Sol
The Costa Blanca, Costa del Sol and the Balearic Islands continue to be the largest markets for second homes in Spain, regardless of the nationality of the buyers.
After overcoming the financial crisis (2008-2013), Spain is currently experiencing an economic recovery for the sixth consecutive year, which is reflected in the real estate market.
Note that moderate price increases are currently forecast. In the last quarter of 2019, the increase in value was 3.8% year-on-year. The SAP rating agency predicts 4.4% for 2020 and around 3% for the following years.
(picture from FrodeCJ on Pixabay)
In the Costa Blanca, popular places such as the northern part of the coast between Denia and Altea thanks to the splendid landscapes as well as the regions of Javea, Moraira and Calpe continue to attract buyers. Because of its appearance in general and the prices definitely lower than on the Balearic Islands, the region has long been an alternative to Mallorca for many buyers, however, the majority of the properties available for sale are second-hand. Indeed, in the north of the Costa Blanca, there is a gap in building plots for large new construction projects. The largest area is currently the "Sierra Cortina" area in Finestrat above Benidorm. A total of 1000 units of apartments, terraced houses and villas are built there by different developers.
Benidorm, as the largest tourist resort on the Spanish mainland, remains the most important market for the rental of holiday properties. The Spanish, the British, the Dutch and the Belgians are the main market, the Germans and the Scandinavians prefer quieter environments such as Villajoyosa, Finestrat, La Nucia and Polop.
However, the real "epicenter" of the construction of holiday homes continues to be the southern part of the Costa Blanca. Real estate projects here are now much smaller than before the crisis. The new modern apartments and the terraced houses in particular now have a more "personal" and "private" effect.
This makes the many properties in the regions close to Orihuela Costa, Torrevieja and Ciudad Quesada attractive to many buyers, due to the long sandy beaches and a milder climate than the north of the coast and also the moderate prices with good build quality and more modern designs. However, prices also continue to rise here.
The proximity of many golf courses in the south remains the main purchase argument for those looking for an investment as rental property, sometimes very exclusive in the south of the Costa Blanca.
(picture from Heiko Behrendt on Pixabay)
No Spanish region is as popular with buyers as the Balearic Islands. Due to the high prices per square meter in Ibiza, 70% of the Balearic holiday properties are in Mallorca. Even though annual value growth has fluctuated by 3% in recent years, prices remain at an extremely high level, especially around Palma or Andratx as well as throughout the southwest. If you are looking for (reasonably) affordable Mallorca real estate, you should consider the east or northeast of the island instead.
Costa del Sol
(picture from M. Pilar Fernández on Pixabay)
The most exclusive place for vacation properties in Andalusia for decades is the cosmopolitan city of Marbella. New construction is booming in Marbella and also in the neighboring towns of Estepona, Benahavis and Mijas.
A total of 200 residential complexes are under construction southwest of Malaga. Quality prevails and the vast majority of real estate is sold off plan. It should be noted that the Costa del Sol recorded a price increase, more than 7%, in comparison with all the other Spanish coasts for the years 2018 and 2019.
The Costa del Sol remains clearly the most popular with buyers in comparison with the various other coastal areas of Andalusia, despite its higher prices.
(Source: Bellevue, magazine on real estate, numbers 1/20 and 2/20)
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