The Costa del Sol: A Prime Location for Property Investment
The Costa del Sol, particularly in the province of Malaga, has emerged as the top destination for real estate investment in Spain. This fact was underscored during a recent roundtable event organized by SUR in English in collaboration with Marbella town hall. Held earlier this year at the Hotel Don Pepe Gran Meliá, the event brought together experts from the property sector and the local government to discuss the growing foreign investment in Malaga.
A Resilient Market: Marbella's Mayor, Ángeles Muñoz, highlighted the effects of the Covid-19 pandemic on the town, noting an influx of individuals from other regions of Spain and abroad. Many are drawn to Marbella and the Costa del Sol due to the region's ability to accommodate remote work and the desirable lifestyle it offers.
Key Factors Attracting Investors: In addition to the region's perennial appeal of abundant sunshine, beautiful beaches, and renowned gastronomy, the roundtable participants emphasized other crucial considerations for property buyers. The committee highlighted the exceptional international schools available, which is particularly important for families. It was noted that the Costa del Sol is attracting a younger demographic, particularly professionals in their thirties who are working at the technology park in Malaga and seeking to purchase property in Marbella.
Changing Demographics: The discussion touched on how the property market has evolved in recent years, particularly concerning the type and nationality of buyers. While Brexit and the cost of living crisis in the UK have impacted British investment in the Costa del Sol, there has been a notable increase in buyers from the Netherlands, Scandinavian countries and the USA, attracted by the favorable euro-to-dollar exchange rate.
Effects of Brexit: The 90-day visa rule implemented after Brexit was also mentioned, as it has affected British individuals spending time in EU countries. However, many British property owners have adapted by sharing their Spanish homes with family members or renting them out during their absence.
Rebounding from the Pandemic: The panelists acknowledged that the Costa del Sol, including Marbella, experienced a robust recovery from the pandemic. It was emphasized that Marbella emerged stronger, citing records such as increased company registrations, reduced unemployment rates, and higher tourism figures. Statistics from Spain's national statistics institute (INE) supported this, revealing a 14.7% increase in homes sold across Spain in 2022 compared to the previous year, with Malaga province alone witnessing a 26% surge in property sales.
Investment Opportunities: The panelists suggested that the Costa del Sol has benefitted from the consequences of the pandemic, as people are seizing the opportunity to realize their dreams of living in the region. Some individuals are redirecting the money they would have spent on hotel accommodations towards purchasing property due to a desire for increased privacy and personal space.
Promising Outlook: Despite ongoing challenges, such as inflation and rising construction costs, the panelists remained optimistic about the property market's future. They highlighted Spain's safety, its distance from conflicts like the one in Ukraine, and the importance of planning regulations in providing legal certainty for investors. The focus on sustainability and environmental considerations in housing development was also commended.
Conclusion: The roundtable event showcased the enduring appeal of the Costa del Sol as an ideal destination for property investment. With its attractive lifestyle, safety, diverse buyer demographics, and promising market outlook, the region continues to attract both domestic and international investors. The Costa del Sol remains a top choice for individuals seeking to make their real estate dreams a reality.
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