The Costa del Sol is still reflecting the ongoing recovery of the residential property market along the Spanish coasts, especially in Marbella, Manilva, Estepona and Mijas. Prices have risen most in the first two of these municipalities, according to the latest report by the Tinsa valuation agency: in Manilva property prices have gone up by 15 per cent, and in Marbella by 11.3 per cent during the first quarter of this year, compared with the same period in 2016.
The report also looks at the situation in the holiday property market in Spain, using official figures and local experience in 58 different areas. There was considerable optimism at the beginning of this year in some destinations, including the Costa del Sol, and that optimism has proven to be correct so far.
The Tinsa report shows that the Costa del Sol is in a leading position in the recovery of the property market. Front line properties on the coast in Marbella are now costing about 6,000 euros per square metre, and in Estepona 8,000 euros per square metre, among the highest in Spain.
With regard to demand, if provincial capital cities on the Spanish coasts are not included in the figures, then the places with the highest number of property transactions last year were Torrevieja (5,291 property sales, about 21.7 per cent more than in 2015); Marbella (4,001 sales, -9.8%); Orihuela (3,839 sales, +1.7%) and Mijas (2,506 sales, +5.6%).
There are some new developments, but it is noticeable that these are mainly in certain areas which have always been popular for construction. The Tinsa report only indicates significant activity in this sector in 12 per cent of the country, including Marbella-Estepona, Mallorca, Ibiza and north of Alicante.
The report also shows that property is selling well in Marbella but the stock of residential property is one of the lowest in the country. The most popular properties are two-bedroomed houses or apartments, about 100 square metres in size. New builds are mainly good quality two or three bedroomed apartments and luxury villas.
One problem in Marbella is a lack of available land following the cancellation of the main town plan (PGOU). This means that developers are looking at nearby areas such as Estepona and Benahavís instead, and as a result prices there have risen considerably in recent months thanks to the high demand for those areas.