37,000 Empty properties in Malaga province

spain construction
Many developments are unfinished

Following the construction boom of recent years Spain now has over 800,000 properties waiting to be sold with 16% of them in Andalucia, mostly in the provinces of Malaga and Almeria. This is an increase of 19,000 since the end of 2010.

Only 2,000 new homes have been sold in Andalucia in the last year according to new research from Spanish bank Catalunya Caixa and the report doesn’t see this number falling too quickly.

With many urbanisations currently under construction the number of new, unsold properties is likely to increase by around 18,000 this year, the report estimates.

The report also showed an increase in the number of state-subsidised houses in the region increasing from 7.1% of the total in 2007 to 34.4% in 2011.

Analysts think this is a contributing factor preventing the construction sector from improving over the last 12 months and it is unlikely to show significant improvement in 2012.

Another reason many of these properties sit unsold is the recent media coverage of corruption trials in which officials are accused of accepting bribes for granting planning permission and residency licences. Many potential property buyers are worried that they could find themselves in a similar situation to the unfortunate people who watched their homes demolished in front of them. Buying a resale property is far safer as the necessary licences are likely to be in place and any construction issues have usually been resolved.

Whether you’re buying a new property or a resale, ensure you use a lawyer and check everything before you sign anything!


5 thoughts on “37,000 Empty properties in Malaga province

  1. DQ

    Looks like it might be time for some off shore investors to come in and make some purchases, and perhaps some private loans as well…. stay tuned πŸ™‚ DQ

  2. DQ – Investors are being invited from all over the world to see the banks’ stock of properties. The Russian Meeting Point has been created for this very reason – not sure they’ll buy 37,000 units though!

    1. DQ

      I had no idea there was that much empty housing… Looks like we will have quite a bit of investment opportunity when we arrive — I am looking forward to this very much! πŸ™‚ DQ

  3. You will! Visit the banks when you arrive and ask to see their properties. They have been dropping prices up to 35%, sometimes more, on some of their stock. Most of the banks are happy to lend on their own properties too. Also give me a shout when you get here and I’ll put you in touch with a few reputable agents, if you like.

    1. DQ

      Sounds great! I have already spoken to the other investors in my group, and we are all of the same mind — helping the people will help the economy. We’re not about big business, we’re about making a difference, and I think this will be a great opportunity. We have some businesses in mind, which should get some jobs going, and also the housing market. πŸ™‚ DQ

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