Costa del Sol new property market is officially booming

The new build Costa del Sol Real Estate market already exists of 11,000 houses in 200 projects. In the next three years it is expected that up to 35,000 homes will be developed.

The interest aroused by the Costa del Sol as a great second home destination has attracted promoters and real estate funds in search of opportunities in the new upward cycle of new build housing projects. Estepona, the Malaga coast, above all, and also San Roque (Cádiz) - where Sotogrande is located - are the centre of a new development awakening.

Costa del Sol property boom 2018

Currently, 200 new construction projects are underway in the municipalities of the Málaga coast, totalling 11,000 homes for sale, according to the data of the Prime Invest consultancy. "The recovery of the new work comes from international fund projects, local promoters and the new large real estate companies, a spokesman stated.

Costa del Sol new build: Beginning of the boom

From the in total 11,000 houses in commercialization, we have to add what developers are preparing urbanistically for future launching. That is expected to reach the market in the next three or four years. That figure is close to 35,000 new homes, according to industry sources. Newspaper Cinco Dias consulted eight of the most active large companies in the area, that together already acquired land for 10,000 homes in the coming years. These are the cases of Metrovacesa (3,000 units), Aedas (2,600), Quabit (1,800), Neinor (1,500), Urbania (1,400), Kronos Homes (1,350), Vía Célere (390 in marketing, without specifying additional land) and Insur (350).

"The Costa del Sol is a very important strategic area. Our goal is to become the benchmark of the new promotion in this area, "says Alberto Delgado, operations director of Aedas Homes (See Vanian Green Village and South Bay Las Mesas). "We give a huge real estate value to this region, based on solid arguments, such as the existence of a strong demand for new national and international work of medium-high profile that seeks both first and second homes," More than 70% of Buyers come from outside of Spain.

New properties Estepona:  A Growing market

"We like Málaga. It is a consolidated place and a place not to be wrong. Here is 20% of our land portfolio (Málaga capital, Estepona, Mijas, Casares and Benahavís), "says a Quabit spokesperson. "We bet on Málaga and the Costa del Sol because of its high potential for residential demand, which is constant throughout the year, combining the first home market with the second home on the coast," he adds.

Of the 200 ongoing projects identified by Prime Invest, 56 are located in Estepona, another 45 in Marbella, 35 in Mijas, 21 in Benahavís, 16 in Benalmádena and, to a lesser extent, others are added in Casares, San Roque (Cádiz) , Ojén, Fuengirola and Torremolinos. According to their data, the promoters are putting special emphasis for the future projects in Mijas and Estepona, while Marbella will give ground after the paralysis of its urban plans.

Property investment: Estepona, Casares strong markets

All the municipalities of the Costa del Sol register increases in average price of more than 4% between the first quarter of 2017 and 2018", is included in the report "Vivienda en costa 2018 de Tinsa". Although in a large part of them, growth is close to or greater than two digits. This is the case of Mijas (13.4%), Fuengirola (11.9%), Nerja (9.3%), Vélez-Málaga (9.3%) and Rincón de la Victoria (9.1%). Even so, prices are very far from the historical highs of the past decade, in some cases with subsidence of more than 50% as in Casares or Estepona (47.7%).

Due to the weight of foreign buyers, "the potential demand for the projects developed in this area may have a certain long-term sustainability without prejudice to the ups and downs that may occasionally occur and what is inherent in our sector.

"We bet on the Costa del Sol because we consider that there is a growing demand for the type of product we develop", a representative of Kronos Homes revealed. Kronos is a real estate company that among other developments develops The Edge, a luxury project in Estepona and designed by the architect Rafael de La-Hoz. 40% of Kronos´ portfolio of new build projects in Spain is located on the coast of Malaga.

As it happens in other points such as the Alicante coast, this housing market is doped with purchases by foreigners, both as an investment and as a place of first or second residence for a multitude of nationalities. "Almost 100% of buyers in Malaga are foreigners. 50%, Nordic and the rest of other European countries such as England, Holland and Belgium. It is a very dynamic market, one of the most dynamic in Spain in the field of second homes, and which also continues to take a look at the profitability of investing in housing in the area, "said Vía Célere promoter.

New developments Estepona

Welcome to the New Developments Estepona section of Terra Sur Homes. We provide objective insights to our International customers into the new developments, new building projects in the Estepona area, on the Costa del Sol. On this page, you can easily find all the available new build projects in Estepona. The Terra Sur Homes portfolio contains:

• New Build apartments in Estepona
• New build penthouses in Estepona
• New build villas in Estepona 

Estepona is nowadays one of the most sought-after holiday destinations in Europe. Thanks to its unique micro-climate, sunny, blue skies are guaranteed 325 days a year. Estepona is protected on one side surrounded by the Sierra Bermeja mountains (protected Green zone), on the south-side by the  Mediterranean Sea. It is one of the most southern hotspots in Europe, but moreover, one of the highest light intensity locations in the world.

But its ideal climate doesn't stop there. Thanks to its optimal Mediterranean climate, mild winters, and moderately warm summers are common. The average temperatures in the summer fluctuate, on average, between the 27 and 32 degrees. During the winter, daily temperatures are on average 20 degrees.

Since 2017, the traditional fisherman town is the center of growth, development, culture, and entertainment. Estepona offers a wide selection of comfortable living area's, surrounded by sea, mountains, beautiful nature and all modern amenities.

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