14 August, 2015

By VIVA Team

Property on the Costa del Sol is proving increasingly attractive once more to foreign buyers.

The most popular region for overseas property anywhere in Europe is set to be boosted further as demand grows among foreign buyers for homes on the Costa del Sol.

A market forecast by the Instituto de Practica Empresarial (IPE) business school has forecast that foreign interest in Costa del Sol property is set to grow by a further 10 per cent in 2016, having already surged by that amount so far in 2015…

Nationally, too, the IPE is also forecasting an increase in foreign interest – by around 5-7 per cent in Madrid and Barcelona, for example – but it is the Costa del Sol, and Málaga province particularly, that is continuing to catch the eye of the overseas buyer.

Demand had already exceeded the national average in 2014, and with prices slowly on the increase and the weak euro making property more affordable than ever – especially for Brits – buyers are striking now in order to grab the best deals. This trend is set to continue for at least 12 months, the IPE suggests.

The report also expects the Costa del Sol’s inventory of unsold new homes to reduce by around 50% as more and more Spaniards get on to the property ladder following a welcome return of domestic confidence and loosened lending among leading banks.

At the upper end of the scale, luxury properties in Marbella, Puerto Banús and surrounding areas are also enjoying renewed transaction levels, buoyed by wealthy foreign investors returning to the market in their droves.

With all spectrums of the Costa del Sol property market taken into account, IPE expects property prices to grow by an average of 2.8 per cent over the next 12 months, having fallen by 47% since 2007, on average.