Residential tourist industry on the Costa del Sol is recouperating from the crisis that hit when the property estate bubble burst in 2008. The rise in sales of properties to foreign consumers is now a reality. Figures for 1st six months of this year show that the amount of transactions administrated by non residents has exceeded those in 2007, the year prior to the property market went into depression. The president of the Costa del Sol Tourism Board, Elías Bendodo, and José Prado of the Association of Constructors and Developers of Malaga, report that between the start of the year and June 4,739 properties within the province were bought by foreigners. This is significantly more than the 3,506 throughout the same period of 2007 and is even forty five per cent more than the same amount of last year.
One outcome of the positive news is that the Tourism Board and Constructors’ Association continue to move forward with their ‘Living Costa del Sol’ project that aims to cut back the stock of unsold housing on the Costa del Sol, because it is believed to have significantly contributed to the positive figures.
Elías Bendodo describes the state of residential tourism on the Costa del Sol as “excellent”, saying that trailing Alicante, Malaga is the next province in España with the second best amount of property sales to foreigners. “Now we can speak of a real recovery” he also insisted.
The International Recovery.
José Prado additionally points out that at the moment one out of each 2 properties sold in Malaga province is purchased by a foreigner.
The British market is especially robust, as also is the Scandinavian market, however it’s unlikely that there’ll be a recovery in demand by Spanish consumers within the short term which is why estate agencies on the Costa del Sol tend to search abroad for purchasers nowadays.
Before the property bubble burst, in 2007, developers and constructors shifted 30,665 properties on the Costa, of that solely 5,095 were bought by foreigners. Now, the figures have altered, with 6,389 properties bought by Spanish consumers and 4,739 by foreigners.
Things are fluid within the foreign markets. Even though the bulk of consumers are still British, Scandinavians and people from Benelux countries are also buying a lot of properties here currently.
The Russian market, that was booming, has lost momentum currently as a consequence of Vladimir Putin’s call to veto certain merchandise from Europe restrict Russians from taking capital out of the country. Affects are not solely on Russians who were going to purchase a property in España however additionally those that have started the proceedings and currently realize that they can’t continue with the payments. A number of those that have recently completed a sale additionally find themselves unable to access additional funds from their home country.