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Foreigners buy half of new homes on the Costa del Sol

First time in years this share of business is achieve in Spain by Foreign Property Investors.

The year 2013 has marked a before and after in the real estate sector in the province. In this new page I write this activity highlights are foreigners who have pulled the sale of newly built properties , to the extent that they are those who have bought half of the homes sold in the entire year , according to data provided by the President of the Association of Builders and Developers of Malaga, José Prado. Specifically , the figure 4,640 transactions that have sealed buyers outside our borders , the 9,526 sold in this period. Prado said that this market share reached foreigners over the past year had not occurred in the province or in the best years of this activity , including the historical period of 2007. This record year of 45,000 units sold , 16,800 were acquired by foreigners.

“The return on investment in residential housing has experienced tourism growth in 2013 that had not occurred in the last six years,” Prado , which increased to 33 % growth recorded last year , compared to 22% of said overall increase in transactions.

In this new phase of Malaga property market is also surprising that the force has reached the destination countries where house purchase in Costa was almost an exception. Sector balance sheet , notes that after the UK, maintaining its leadership in residential tourism , have been placed at the top Swedes , Belgians and Norwegians , who surpassed even the Russians, French and Germans. The latter two, along with the British, were permeating years ago buying homes in the province . The explanation lies in the recon quest of the Coast as a holiday destination for these tourists . ” The Nordic a couple of years or three turned to look at Malaga coast for their holidays . With it came the increase of direct flights and the following result is that I started thinking about purchasing a second home on the coast. This is what usually happens and what has happened with these new customers, ” Prado said.

New markets

Data nationalities who head the number of purchase transactions suggest that the British have acquired 1,200 properties last year , followed by the Swedes, with 600 houses, the Belgians, 550 , and Norwegians , with 450 new homes purchased are located at the level of Russian investors , with another 450 properties . In the tail of these top seven places are France and Germany, with 440 and 280 homes purchased . “We cannot forget that much of these gains upwards correspond to the efforts of the public-private partnership between Malaga Provincial Council , the Tourist Board of the Costa del Sol and the Provincial Association of Promoters and Builders Malaga ( ACP ) , which is reflected in the Living Costa del Sol project , aimed at boosting legal certainty for this destination in foreign countries , investment in real estate , ” Prado said.

The president of the employers said that you can now see that the drop in foreign sales was more focused on what triggered surf the Malaya operation with the economic crisis itself. In this regard , he emphasized that this collaborative project with the County Council has been key to increase legal security of housing included in the program Living Costa del Sol “This new form of cooperation has been essential to re- highlight a pillar essential to our economy is the residential tourism , which is resulting in a strong increase in sales to foreigners in our province, as well as an increase in travellers using our residential housing for tourist purposes he said.

Prado emphasized the importance of the residential segment and referred to according to official data of the National Statistics Institute ( INE ) for the past year tour , the total number of tourists to the Costa del Sol received totalled 9.5 million , of which 4568980 chose to stay and hotels , the rest , i.e. five million became homeownership, housing rented or friends to stay in the province.

“The residential tourism accounts for over 50 % of the foreign visitors who are counted in the statistics as inbound tourism in Malaga , therefore should be treated as such and tourism promotion activities will also continue to focus on drawing him to the area. It provides residential tourist and non- seasonal visitor loyalty over time , in addition to generating additional tourism destination as prescribing to family and friends , he warned.

Also at the national level , which began in 2012 the recovery in sales has occurred in this relay nationalities. The Russians have been very important , but what was also significant input is an important flow of new buyers from France , Belgium and Scandinavia markets in recent years had not been relevant.

“For example, the Gauls have grown from 1,200 in 2009-3215 acquisitions in the past year in Spain . And the Belgians, who were not even among the top twenty nationalities in 2007 , purchased 2,372 homes last year. Germans also are acquiring much more , but its rise is less significant and do not reach the investments performed until 2007 ” finalized president Malaga builders.

The price factor

In this dynamic real estate sector has also played a leading role the lower prices which has caused the average investment has been placed at 150,000 Euros , compared with 170,000 in 2012. On this aspect , specifies : ” this number is not significant in itself since it can be foreigners who have bought homes above 500,000 Euros or bought two or three properties , exceeding the minimum investment of half a million Euros. What is significant , in any case , is that the sharp fall in housing prices in coastal areas has again provided very attractive to Spanish property market among foreign workers . ”

The coast has brought together most of the operations , being also the areas where there has been a major adjustment of prices in the tourist residential housing. The price cut is estimated at more than 45 % on the Mediterranean coast . ” This has whetted the appetite of buyers and investors of thousands of foreigners. Many of them were living , or have lived in Spain and have seized the moment to invest in Spanish soil . However, a large percentage of those who bought property had not resided in the country , which shows how Spain is back in the interest of the foreign investor, both mature markets and emerging markets , “explained.

Malaga remains second province in Spain , after Alicante, in which more real estate investments by foreigners were performed . Meanwhile, Andalusia is the second Spanish community that experienced the highest growth , with 37 %, and only preceded by Murcia, where residential Flip rose 43 %.

Prado said that Spain has gone from being the black sheep to become the star of the European property market , with the landing of investment funds with combined sales soared 198% . The challenge now is to recover the sector domestically.

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