Should I invest immediately in a property or should I rent a place for some time, in order to monitor the local market and not to take any financial risk?
To rent or to buy... this is the question Is it worth buying or renting a house on the Costa del Sol? This a frequently asked question by our would-be buyers who would like to relocate on the Costa del Sol.
After nine years of economical crisis the Real Estate Market in Costa del Sol is showing shy but constant signs of regeneration. This phenomenon is actually observed all over the national territory, the main trend being registered in the province of Andalusia, where the global sales have reached one third of all the sales in the main regions of the Penisola Iberica
In this area the prices are obviously higher compared to the East coast of Malagà. For instance l'Axarquia located between Nerja and Rincòn de la Vittoria are available at 50% less for the same volume. The cheapest average prices of the whole of Costa del Sol, is available in the area of Torremolinos and Mijas. Although this sector is more and more dynamic, the possibility of getting permission for new constructions remains quite limited. The Real Estate Market in Costa del Sol is mainly proposing second hand houses, except for the Marbella cost where a good average number of touristic buildings are available. See for instance a recent project for the realisation of 300 residential units in Estepona, 150 in Marbella and 100 in Manilva.
In the whole province of Malagà, in Torremolinos the following municipalities have registered the highest score: Benalmadena, Fuengirola, Marbella ed Estepona. As usual with the Real Estate Market the prices are expected to leaven. The price is determined by the different types of construction , dimension and location respective price and dimension and location. Some luxury residences situated right on the coast from Marbella to Manilva can reach 300 square meters.
The following figures are giving evidence of the fact that, in the year 2016, 34% of the houses in the province of Malagà have been sold to foreigners for as much as 8.922 units. Thus reaching the highest score amongst the other chosen touristic cities in Spain, not only by European citizens but worldwide as well. And now let's go back to our first question: “Is this a propitious time for buying a property on the Costa del Sol?” According to the Director of IPE, the “Do not buy today... wait-for-tomorrow-for better-opportunities” trend is over, it has been replaced by the: “Buy today, tomorrow-will-be-more-expensive”. Once more, is it more convenient to buy or to rent? Not long ago I would have answered: “Better not to take any risk and start renting instead. This is no longer true as this ever changing and fast reacting market shows that it is easier to find a good opportunity of buying than a long lasting terms renting residential solution. In fact the wave of tourists who have surged upon this Cost since the last 3 years has shown that the owners of the second hand houses would rather let go opportunities, in order to offer later some shorter terms turistic renting, at the cost of letting their houses empty...
Altough this option brings higher management costs, the Region of Andalusia has applied specific norms to the short term turistic renting, as explained above, in order to regulate the huge black, typical of this kind of business. Although the sale prices for second hand properties are getting higher, it still is possible to spot excellent opportunities compared to the residential renting prices which, are not diminishing and do not always offer the best solutions. To go on answering our initial question and since on the Costa del Sol the very first solution is often a temporary one, such as renting, each person will choose according to her own capacity of adaptation. The ,best thing being to trust serious and qualified agencies. Very seldom would one be able to rent a “vivienda” at the first strike, even with a “For Sale” option on it, as we all know that the ultimate decision remains the owner's.In the case of buying directly, the margins of negociation would be much to the client advantage compared to otherwise, taking into account the real estate crisis which has been striking Spain from the year 2007 on, has left the most important stock of the Real Estate unsold in the Province of Malaga, and to tell the truth the high percentage of buildings previously constructed has been worsening the situation. In conclusion whether you come to rent or to buy, be sure to get the highest quality of life ever in the city of Malagà and in all the Costa del Sol.