According to Premier Marbella news sources, real estate experts confirm a rise in New Costa Residential Projects. A third of all the new development projects completed in Andalucía in the year from March 2018 were built in the province of Malaga, that is, 3,647 of a total of 10,609 new homes. The Costa resorts where house prices have increased most are Casares, Torremolinos and Mijas. Vivienda en Costa 2019 a report prepared every year by the valuation firm Tinsa highlights sustained growth in the number of new properties built, as well as in property transactions, especially in Malaga city and along the Costa del Sol. Malaga is way ahead of other provinces, such as Seville (where 2,258 new properties were completed during the 12-month period) and Granada (1,061).
This rise in New Costa Residential Projects has had an effect on the evolution of property prices over the last few months. The Tinsa report revealed that average property prices have gone up most in Casares (+17.6%), Torremolinos (16.1%) and Mijas (15.3%).
Nevertheless the most expensive places to buy a property are still Marbella (2,331 euro/m2 on average), Nerja (2,095 euro/m2) and Fuengirola (1,907 euro/m2). In the case of the city of Malaga, prices have gone up by 14.9% in the last year reaching an average of 1,659 euros per square metre.
Tinsa’s commercial director, Pedro Soria, said that the Costa del Sol is the driving force behind the recovery of the real estate market in Andalucía, a recovery that has been noted in every coastal town. He added, however, that there is still a long way to go to reach the top prices noted in 2007, just before the start of the financial crisis. On the entire Andalusian coastline the pre-crisis price peak has only been equalled in some parts of Tarifa.
Asked about the danger of a new real estate bubble, the specialist said that today’s circumstances are different from those of 2007. Now mortgage providers are controlling credit much more and analyse the solvency of borrowers.
Leading Marbella property specialist Romano Keogh commented that the market is moving mainly by people selling their homes to buy a better one or buyers using their savings. Now the sector has a healthier, more balanced and sustainable model.
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