Residential Market
Residential Market
The new-build residential market has been characterised for moving at different speeds, with solid foundations that have provided us with great stability during the pandemic.
José Luis Sanz | Associate Director. Residential & Alternatives. Capital Markets
In a general but adverse context, in 2020 the market continued to be dynamic. Conditions were created throughout the year so that, once the health crisis had ended, a transactional boom would ensue in terms of land. The most attractive urban areas in the city in which to undertake residential projects include: Cortijo Merino, Sanchez Blanca, Nereo, El Tinto, Repsol and Rojas Santa Tecla. On a transactional level, the highest price obtained has been registered for land for urban development in Málaga-Este (€1,500/m² floor area) Furthermore, we hope that once the vaccine rollout is complete and flight activity from different potential-buyer countries returns to normal, a high level of significant activity will be seen in the land market in general and specifically in that on the Costa del Sol.
José Luis Bravo | Director. Residential Sales
As we have seen over the year, the robustness of the residential market has continued throughout the pandemic, establishing an upward trend during 2020. Greater protagonism of the pre-owned home sector that continues being the benchmark insofar as number of transactions, although the new-build market shows clear growth. The new-build market has gone from a market share (number of transactions) of 11% pre-COVID, to 20-30% today. A sector moving at two speeds: on the one hand, the dynamism, high demand and good rate of sales that has characterised Málaga capital with an early recovery. On the other, the impossibility of travelling for potential non-resident international buyers has led to a fall in the number of leads and visits, in turn slowing down the rate of sales on the Costa del Sol. In any case, and once normality returns after the pandemic, we expect the second-home market to quickly reactivate on the Costa del Sol, which will be seen in the third and fourth quarter of this year. Nothing currently leads us to consider a drastic change in house prices. In fact, certain stability is expected with slight increases throughout 2021. This year we will see new launches of new-build projects both in Málaga capital and in Costa del Sol municipalities.
