Mijas leads the rise in housing prices on the Costa del Sol
Mijas registers the third largest increase in value on the Andalusian coast, at 13.4%, followed closely by Fuengirola and Torremolinos.
Central Costa del Sol has inherited the leadership that Marbella had been exercising since the beginning of the real estate recovery in terms of prices. Thus, of all the coastal municipalities, housing in Mijas rose the most between the first quarter of 2017 and 2018: at 13.4%, which also places it third in the Andalusian ranking, behind Cartaya (+17.1 %) and Almonte (+ 15.2%). In fourth and fifth place, immediately after Mijas, are Fuengirola, with 11.9%, and Torremolinos, with 10.9%. On the other hand, during that period, housing prices froze in Marbella, according to the ‘Housing on the coast 2018’ report prepared by Tinsa.
The business technical director of this firm in Andalusia, Rafael Jiménez-Salas, believes this slowdown is caused by the municipality reaching a ceiling after several years of upswings. On the Andalusian coast, Marbella still has the highest average housing prices (2,069 euros per square meter). In addition, it is closer to reach the pre-crisis levels (31.4%). However, experts dismiss the stagnation of prices as a symptom of a real estate slowdown since Marbella still remains at the top of the offer (with 284 building permits in 2017, the third highest volume of the Andalusian coast) and of demand (with 4,285 purchases in 2017, the record of the Andalusian coast without counting the capital of Malaga).
No risk of overheating
Tinsa technicians rule out the risk of the Costa del Sol real estate market overheating despite the double-digit price increases that are occurring in some municipalities. “We have to analyze all indicators together and if we do, we will see that in terms of production, we are far from pre-crisis levels,” says Jiménez-Salas, who considers the entire Costa del Sol in “clear recovery”, with about 90 real estate promotions active from east to west.
‘Vivienda en costa 2018’ is an x-ray of the holiday home market in Spain, based on statistical information and the local experience of Tinsa’s technical network. The Málaga coast is divided into three zones: Axarquía, central Costa del Sol and western Costa del Sol.
Regarding the Axarquía, the report forecasts prices will “continue to rise” as the stock is low and economic conditions and financing have improved, which, together with the tourist boom of the Costa del Sol, “Helps recovery of demand”. “Unlike the previous year, in most municipalities, new construction promotions have been started,” he adds. Projects that were paralyzed have been reactivated, and the land market begins to show regular activity, with an upward trend in prices
The area between Torremolinos and Mijas is “in clear recovery, both in prices and in sales and in the development of new promotions.” In fact, prices will continue to rise, according to Tinsa, as the new promotions under construction have high sales prices. Pending works have been reactivated in all localities and new projects have begun in the four locations, mainly in Mijas, and to a lesser extent in Fuengirola due to the scarcity of land. In this area, the foreign buyer has a greater role than the national buyer, with the exception of Fuengirola. Buyers tend to originate from Great Britain and Germany, although in the last years, buyers of Nordic origin have been attracted to some promotions.
Between Marbella and Manilva, promoter activity is “remarkable”, according to Tinsa. In the last year new projects have started: some 300 homes in Marbella and 800 in Estepona. “New construction prices are reaching very high levels, which could be reaching a ceiling,” says the report.
Source: Diario Sur.