Signs of Over-Development Seen on Spain’s Costa del Sol

12 December 2019 – Development on Spain’s Costa del Sol has taken off since the country has emerged from the housing crash. A boom is underway in the area between Málaga and Estepona where there are more than 200 developments under construction. Some of the developers are finding it increasingly more difficult to maintain the pace of sales, as oversupply, increased prices, and a generalised economic slowdown are beginning to bite.

The number of approvals for construction permits on the Costa del Sol has risen dramatically in the last year, reaching a level that is 50% higher than in Costa Blanca. Also, the issuance of construction permits in 2018 for the Costa de Sol rose by 50%, while there was a 10% drop in Costa Blanca.

The shortage of developable land has caused a sharp increase in the prices for both construction materials and the homes for sale. The price of land has doubled in the last three years, while house prices have been rising at annual rates of 8% and 10%, with even higher rates on the coast.

Original Story: El Confidencial – Elena Sanz

Adaptation/Translation: Richard D. K. Turner

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