How times have changed, at long last there are distinct signs of new build recovery along certain parts of the Spanish Costa as well as in some of the major cities. Not since 2007 have there been so much evidence of building activity. New build development is slowly re-emerging after almost 8 years of inactivity. The Costa del Sol, Mallorca, the Costa Brava as well as the major popular tourist cities like Barcelona, Malaga, and Madrid are all the recipients once again of heavy machinery, high rise cranes and excavators, as new developments get underway again after seven / eight years of paralysis. However it is not all steel, cement and chrome. There are still huge volumes of empty homes across certain parts of Spain, according to Government figures a staggering 535,734 remain vacant after the building boom throughout the years leading up to 2007.

Spain´s “overbuild” during the frenetic years before 2007 is reducing as demand increases, however the bottom line is that there is still a substantial surplus and likely to take some considerable time to be taken up. Governmental figures suggest that last year alone the excess stock reduced by only 5%.

The real issue facing the market is that even now there are only a handful of resorts along the Costa del Sol where values have bottomed out and are showing signs of improvement, Nerja being one of these. The major problem facing this glut of either unsold or new build properties is that they were built in areas where the majority of prospective owners do not want to live either full time or part time, nor are they suitably aspirational to encourage holidaymakers to book a self-catering holiday.

In Andalucia, according to the Ministerio de Fomento there are still some 85,000 vacant properties, 83,000 in Catalonia and no less than 98,000 in the Community of Valencia.

Foreign demand has been largely responsible for ensuring that Nerja remains one of very few areas on the Costa del Sol not exposed to any surplus of vacant stock. The area has never experienced the intrusion of new build in any volume and as such has retained a much desired “low rise” as well as a “very Spanish feel “about it. Whilst always being a favourite amongst British buyers, the last few years have seen an influx of northern European buyers, particularly from Scandinavia and more latterly from Holland, Italy and France.


Back to news headlines Date: 06 October 2015