Photo credi: Kevin Poh
Sales of property in the Costa del Sol have surged by 74 per cent this year, according to one Spanish agent.
Spain's economy continues to struggle, but confidence in the Costa del Sol is rising, argues Taylor Wimpey España. The house builder has seen transactions jump by almost three quarters so far in 2012 compared to the same period last year.
A development in Marbella led the surge in sales, explains Sales Manager Marc Pritchard, with over 60 per cent of the luxury units snapped up in three months.
"Whilst the domestic market in Spain is indeed suffering, the second home market is back with vengeance," says Pritchard. "Overall we have seen a 17% increase in sales to date in 2012 compared to the same time last year but the 74% increase in sales in the Costa del Sol is remarkable."
"Taylor Wimpey España has been active in the Costa del Sol for 50 years now; we have experienced the boom days as well as the bubble bursting but we remain strong in our belief in the area as the perfect place to own a second home so much so in fact that we have just invested €15 million into our latest development Los Arqueros Beach in Marbella."
The mayor of Marbella, Angelos Muñoz, attended the development's launch, announcing that it would create "more than 160 jobs" in the next five years.
The increase in Costa del Sol sales follows Spain's recent proposal that foreign buyers spending over €160,000 on a property in Spain would automatically be granted permanent residency. While the scheme will not benefit British buyers, it is expected to appeal to Russians and other investors from further afield.
Indeed, the investor profile for Spanish property has widened in the past year. In 2012, Taylor Wimpey España says that it has sold properties to over 20 nationalities, including Russians, Saudi Arabians and Australians.
Scandinavian buyers are also stepping up demand significantly, with sales from the region soaring by 300 per cent, according to the firm. Denmark, too, has seen purchases climb by 150 per cent compared to last year.
Marc Pritchard adds: "No longer is Spain and the Costa del Sol in particular the preserve of the British second home owner. With the fall of the euro and the reduction of VAT to 4% until the end of 2012, Spanish property has become much more affordable, attracting buyers from all corners of the world."
With the end of the year approaching, sales are expected to keep on rising as buyers rush to beat the tax deadline. Spanish notaries predict "a late flurry" of transactions, reports Spanish Property Insight , with mortgage tax relief set to expire on Monday 31 st December along with a VAT rise back to 10 per cent.
Feeling confident about Costa del Sol?
Browse our listings of coastal apartments, traditional townhouses and other Costa del Sol property: