New construction is a favourite in Andalucia
Monday, September 18, 2017 @ 8:36 PM
One of the anecdotal conversations currently taking place in the real estate world, is the pace of new construction on the Costa del Sol. It's easy enough to observe that over the last 1 year many cranes have popped up behind every corner - but I like statistics as you know, so I went on a search to verify.
One of my favourite websites to lurk around is INE.es, Spain's statistical office. It offers us the following succinct data table for the whole of Spain, which shows the year period (first column), the total number of housing starts (second column), and number of residential housing starts (third column).
| 2016 |
23,977 |
19,801 |
| 2015 |
21,223 |
17,052 |
| 2014 |
16,573 |
13,003 |
| 2013 |
16,676 |
12,868 |
| 2012 |
20,758 |
16,242 |
You can see the increase in both residential and business construction starts, especially since 2015. The year 2017 so far has advanced as follows:
| May |
2,624 |
2,163 |
| Abr |
2,004 |
1,638 |
| Mar |
2,770 |
2,320 |
| Feb |
2,265 |
1,912 |
| Ene |
2,141 |
1,795 |
Almost 10,000 project units till May, which means we are heading for matching 2016 and more. Now, this data is for the whole of the country, how does Andalucia fare?
| Year 2016 |
Year 2017 |
| (trimester) |
(trimester) |
| 1º |
2º |
3º |
4º |
1º |
| 1,589 |
1,672 |
1,409 |
1,645 |
1,399 |
The data only goes to April 2017, but it shows that around 25% of the new Spanish construction was in Andalucia! Coupled with the 2.6% increase in prices for new construction residential units in the 2nd trimester) ( see: http://www.ine.es/dyngs/INEbase/es/operacion.htm?c=Estadistica_C&cid=1254736152838&menu=ultiDatos&idp=1254735576757 ) it all points to a rather frenetic pace in new developments on the Costa del Sol.
I finish with an informal piece of information, you should not take my work for it but there it is anyway: at HBC we were trying to get an agreement with one of the luxury developments we were interested in. The developer said: Phase 1 is sold out (they haven't even started it), and for Phase 2 I have too many estate agents with agreements already. We did manage to strike the deal, but it appears that there is strong demand from Europe for new construction, rather than resales.
But that is a subject for another post :-) Enjoy your day, thanks for reading.