The number of new properties completed in Spain during the period January to August 2017 totals 36,000. This is quite an exceptional figure, and represents an increase of 39.7% on the same period in 2016, according to respected property information website Spanish Property Insight.
This is something of a turn around for Spain. For example, in 2007 there were 641,419 properties completed, and this dropped by 94% over the nine years to 2016, which is when we first saw the cranes and return to action.
This remarkable new trend in the number of new properties being built reveals that the demand is there for Spanish properties. It also points to the fact that any excess in the number of resale residences for sale has been removed and that the resale side of the market is back to stable conditions. Everyone is aware that there was a glut of older properties for sale following the recession, but now that this issue is resolved, new homes are filling the rise in demand for properties on the Costa del Sol.
Of course, it is not just the fact that more properties are being sought; another important factor in this explosion of new builds is the design. New buyers are often seeking the contemporary architectural style, which one only finds in the new builds of the past two years. It is evident that where there were once only a handful of villas available that incorporated the open-plan layouts with Scandinavian-styling and an emphasis on light-filled interiors, now there are a significant number of luxury villa, and most importantly, apartment complexes, providing the latest in both exterior and interior design, plus the most up-to-date finishes.
Private developers built the majority of new homes built in 2017 – 97.8% in fact—with local councils constructing the rest. These statistics show that private developers are feeling more confident this year and have increased their commitment to new builds by 38.4%. And with good reason, because the value of the homes built this year has increased by 44% to reach €4, 736.5 million.
If you would like to see any of the new Marbella property developments Altavista Property has in its portfolio, we will be happy to show you them. Just contact us!