While the construction industry in Spain is still trying to recover following the crisis, building on the Costa del Sol is booming.
In fact a third of all new residential building projects in Andalucia are taking place on the Costa del Sol.
The good health of the building sector was revealed in two reports that came out last week. Both of them highlighted the number of new properties built and resales in Malaga and along the coast.
One of the reports, Vision 2019 compiled by Savills Aguirre Newman showed that Malaga is ahead of other provinces, with prices increasing 17.6% in Casares, 16.1% in Torremolinos and 15.3% in Mijas.
Meanwhile, Marbella and Nerja remain the most expensive with property in Marbella priced at 2,331 euro/m2 and Nerja 2,095 euro/m2.
To put this into perspective the price of homes in Malaga city has risen 14.9% over last year and now average 1,659 euros per square metre.
When asked about the recovery in the property market Tinsa’s commercial director, Pedro Soria said that the Costa del Sol is the driving force with every Costa town seeing an increase in prices.
And while the recovery is yet to reach the highs of 2007 places like Tarifa are close to seeing those prices again.
When asked if he thought there was any chance of a new bubble in the market, he said no, because the criterion for borrowing was much different saying: “We now we have a healthier, more balanced and more sustainable model.”
While commenting on Malaga Soria pointed out that people who in the past would have bought in Marbella are now buying in Malaga.
“Now clients are realising that [in Malaga] there are quality architects, an airport close-by and opportunities by the sea,” he said.