The regions of the Mediterranean coast of Spain are currently the most popular real estate markets in the country among international buyers. The main buyers of housing are British citizens. They are followed by citizens of France, Germany and Switzerland. Argentines also appeared in the top ten of the rating of nationalities. All of them are attracted by the high quality of life, good infrastructure, climate, developed tourism sector and many leisure options.
The Costa del Sol, in the autonomous community of Andalusia, is experiencing a real boom. Alexis Demian, a representative of Legem law firm, points out that the region has already overtaken Barcelona in terms of the volume of investments attracted from abroad. The trend has especially intensified after Juan Manuel Moreno, the chairman of the Government of Andalusia, announced the abolition of the wealth tax throughout the region.
The Costa del Sol region occupies more than 150 kilometers on the Mediterranean coastline of the country, forming part of the province of Malaga in the south of the Iberian Peninsula. The name comes from the statement that the Costa del Sol has 325 sunny days a year.
Gustavo Menaed, co-founder of the Argentine developer Grupo Portland, points out: «Spain is a dynamically developing, stable market. Along with Portugal, it is a key attraction in Europe. Tranquility, stability and comfort — the country has everything to attract a foreign buyer. Already today, the suburbs of the country's largest cities are actively growing into upscale areas that are trying to meet the enormous demand for housing from wealthy foreigners».
If you rely on surveys of market participants, then you can see an almost unanimous opinion about the active development and growth of Spanish real estate. There is confidence in the continued growth of prices and sales volumes in the market in the near future, including due to the apparent shortage of available goods. The pace of construction does not keep pace with demand, new goods are sold out within a month. With the recent entry of large investment funds into the national market, the situation with the lack of housing has only worsened.
The portal «How to buy in Spain», which provides statistics for foreigners wishing to buy real estate in the country, named the Balearic Islands, Malaga and Alicante the fastest growing real estate markets in the period from June 2021 to June 2022. One of the most expensive housing categories is located there, prices and sales are actively growing.
Menaed points out that Spain stands apart from both such giant real estate markets as the United States and emerging markets like Uruguay. In the current situation, the country is gaining more and more interest from foreigners. For example, Argentines have noticeably shifted their preferences towards Spain, preferring it to the classic choice of Miami.
In general, the representative of Grupo Portland points out that today is a good moment to enter the Spanish market. Pravda adds that it is necessary to carefully analyze the costs and the expected profitability at a specific time of the investment. Luxury class facilities are already at their peak, but the more affordable segment still has a decent margin for growth. The profitability of apartments in Madrid is still 4-4.5%, but it may grow even more.
Grupo Portland itself is currently engaged in active development in Guadalajara, an area northeast of Madrid, if you follow the highway to Zaragoza. On the example of the company's work, houses in this region will cost, on average, 227,000 euros (approx. without VAT). Rental rates are at the level of 1,400 euros per month. Housing will be built in batches of 20 pieces and it is planned to build about 74 properties in this area alone.