Spanish Property Rewinds to 1983
Sales of holiday homes on the Costa del Sol have collapsed to levels last seen back in 1983, according to a recent article at the Spanish consumer website consumer.es.
Based on figures provided by Jose Prado, President of the Malaga Association of Constructors and Developers (ACP), the article reveals just 2,500 holiday homes have been sold so far this year in the Costa del Sol’s Malaga province, compared to 22,800 sold in 2006.
The credit crunch and falling investor confidence are blamed for the collapse in sales on the Costa del Sol, which represented 40% of the Spanish second home market in 2007.
The only segment that appears to have escaped the crash is the million Euro plus market, where buyers are less vulnerable to the economic crisis, says Prado.
“No one can remember a situation like we have now,” Ricardo Arranz, President of the Andalucian Federation of Developers and Residential Tourism, is quoted as saying of the Costa del Sol market, which has been in crisis for more than 3 years.
The construction downturn has been exacerbated by urban planning scandals that have damaged the image of the coast as a destination for holiday home buyers and expats, argues Arranz.
The Costa del Sol’s climate and infrastructure will ensure that demand returns when the crisis blows over, says Arranz. The economic crisis being global, Arranz does not see competitor destinations grabbing market share from the Costa del Sol.
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