Reading the signs of the Costa del Sol market

After finding the article the Spanish property bust, I thought it would be of interest to look at how the province of Malaga has done by comparison. Although there are no specific figures for the Costa del Sol, we can work on the assumption that has most of the population and infrastructure are along the Malaga coast, Malaga province equates with Costa del Sol in reference to property transactions.

Unlike the general figures for Spain, the property market on the Costa del Sol has not ever so slightly increased year on year. Looking at the table below, we can see that that in January 2010 sales have decreased by approximately 380 sales compared to January 2009. In total 1831 were sold this January, which although lower than last year, is higher than the monthly average which stands at 1800 per month.

Now for a bit of information that many vendors will find interesting and which could possibly affect the choices made by potential buyers. The level of resale transactions has held up quite well over the last year and has in-fact shown signs of growth over the last several months, as you can see below. Year-on-year resale’s have increased by 12.7%! Newly built properties on the other hand have seen transactions decrease by 32% year on year.

Although comparing this Januarys figures with 2007 is always going to look bad it is worth mentioning that although nationally, Spanish property sales are down 56%, the Costa del Sol property market has held up better and is ‘only’ down by 52%. Maybe not fantastic news, but at least the local market can claim to have held up better than the national average.

Over the following months we can expect new built properties to continue to decrease while the market returns to a more normal equilibrium with resale’s making up a largest percentage of total sales. And although Spain is still showing negative signs of growth, we can also realistically expect to see an increased level of foreign buyers as many northern European economies are showing more positive signs.

Regards
Andrew Bellés

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