2020 Costa Del Sol Property Market Review
Property Mail talks with Property expert Peter Bowerman about the Costa del Sol property market.
Te question I am most oſten asked is, “Are house prices going to keep increasing on the Costa del Sol?” Obviously, excluding world crisis’, influencing the markets, the only way to make a sensible assumption is to look at history and the current trends. To get a broader view, I have based the below observations from figures taken from various sources. 1) From our own Real Estate Company 2) From one of the biggest Spanish property portals and 3) From the official House Price Index figures recently released for Q3 2019. Looking at the Costa del Sol’s sales figures for the third quarter of 2019, it shows that average sale prices were up by around 5.9% year on year. With a slight majority of buyers
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leaning towards new builds, probably taking advantage of the great “off-plan” discounts available. Tis 5.9% annual price growth puts the Costa del Sol in 2nd place on the leader board, regarding Spain’s highest regional price growth. Terefore, the Costa del Sol is a much more attractive investment than somewhere like Murcia, that was only a third of the way up the leader board with 3.7% growth rate. Te 2007/8 worldwide financial crises led to around a 50% property crash in many parts of the world including the Costa del Sol. Property prices in most of Europe have already recovered completely and in many cases already surpassing their 2007 values, but not the Costa del Sol, why?
Luxury areas like the Costa del Sol attract an enormous amount of International buyers, usually successful business people, choosing to purchase their second luxury home or their final home relocation. But, as you can imagine, during the financial crisis, most businessmen around the world were focusing on trying to keep their own home and business afloat. Tey were certainly not thinking about spending money on luxuries. So, it wasn’t until the crisis in their own countries was over, that they felt secure enough to start thinking about investing in luxury properties abroad again, which led to the Costa del sol, having a much slower recovery.
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