CBRE: New Homes Under Construction on the Costa del Sol Will Be Sold for c. €6,000/m2

18 February 2019 – Diario Sur

Six thousand euros or one million pesetas (…). That is what the buyers of the new single-family homes in Nueva Andalucía, in Marbella, can expect to pay per square metre. The real estate consultancy CB Richard Ellis has compiled a report about the characteristics of the new build developments that are being constructed on the Costa del Sol. And, the changing trend is reaching such an extreme that the analysts involved are talking about “a new building paradigm” in the residential market on the Costa del Sol, in this cycle of reactivation of the sector. The general conclusion is simple: better quality homes are being built, with more considered designs and common services, but also with much higher prices.

The document points out that in the past, the large number of transactions were sold for speculative purposes and, therefore, fundamental questions such as finishes, orientation, views and distribution were often neglected in the developments that were put on the market (…).

But times have changed. In this new cycle, property developers are taking care of their products and focusing their attention on clients with medium/high purchasing power and primarily those from overseas. It is not so much a question of location, be it in one specific municipality or another, but rather the quality of the product. (…). Now, most of the developers are backing more contemporaneous designs, with straight lines and large windows, with some of the best finishes in the market.

Change in model

“The reality is that during the last cycle, homes were built for the average market, but following the crisis years, almost everything is now being constructed to serve a niche in the market, of average-high purchasing power, which was previously unmet demand”, explains Andrés Moreno, Director of the Valuations Department at CBRE in Andalucía (…). “Now, much more care is being taken. Everything is designed with the final purchaser in mind (…)”.

The report highlights that the Costa del Sol is consolidating its position as an exclusive and luxurious destination. And that trend means that the newest flats are far from affordable for the general public (…).

In areas around Torremolinos, there are developments with sales prices of more than €4,000/m2, when the average for the area does not exceed €2,500/m2 for second-hand properties. In the Fuengirola/El Higuerón area, new build homes are being marketed for more than €4,000/m2. Prices amount to close to €3,000/m2 in La Cala de Mijas and rise to €6,000/m2 in Nueva Andalucía and Behahavís. The average budget of these clients ranges between €500,000 and €1 million.

Original story: Diario Sur (by Ignacio Lillo)

Translation: Carmel Drake

Andalucía To Draft New “Land Use Plan” For Western Costa del Sol

5 September 2017 – Inmodiario

Following the cancellation by the Supreme Court of the Land Use Plan (POT or ‘Plan de Ordenación del Territorio’) approved in 2006, the Governing Board of the ‘Junta de Andalucía’ has started the process to prepare a new POT for the Western Costa del Sol.

As well as addressing the formal questions behind the legal ruling, the document will update and adapt to the changes that have been seen in the region in socioeconomic terms over the last ten years. The aim is to establish a new framework for urban and land development in the area, which comprises nine municipalities and has a population of almost 400,000. In addition, the plan will set objectives and supra-municipal organisation criteria for infrastructure, green spaces, and areas of growth.

To prepare the plan, the formulation decree approved by the Board establishes the creation of a drafting committee, which will comprise representatives of the central and regional administrations, as well as from the Provincial Council and the Town Halls in the district.

In general terms, the POT identifies those areas that should be protected from the urbanisation process due to their environmental, scenic cultural value, and those that should be allocated to the development of economic activities and the location of supra-municipal equipment and facilities, given their strategic value. All urban plans and public and private initiatives must adhere to these guidelines.

The POT for the Western Costa del Sol includes the following municipalities within its scope: Benahavís, Casares, Estepona, Fuengirola, Istán, Manilva, Marbella, Mijas and Ojén (…).

Original story: Inmodiario

Translation: Carmel Drake