Investment in real estate is an indispensable direction for urban agglomerations. The latest figures, published by the regional authorities of the province of Málaga, show an unflagging interest in real estate in this region of Spain.
During the first six months of 2022, almost 3,000 residential projects were approved in Málaga, with construction likely to start soon. According to information from the Association of Architects of Málaga, the province closed the first six months of the year with a total of 2987 projects approved, a 22% increase on the number approved in the same period of 2021.
In the first six months of 2022, 552 new residential projects were granted permission, valued at €431.5 million. 453 of these are detached houses guaranteeing 877 properties and 97 are flat blocks with a total of 1,925 flats.
Continuation of the upward trend
The data released shows that in the second quarter of this year, a total of 1506 projects were approved within the province of Málaga. This figure is slightly higher than that achieved between January and March, when building permits were granted to 1,481 properties. In contrast, 276 projects were approved between April and June, with a value of more than €203.5 million.
The most active area is the town of Málaga, which leads the way in terms of the number of new developments planned. There will be 79 of these and they will include 586 new homes. The west coast of the Costa del Sol has also seen a welcome increase in the number of new projects, with 37 developments approved in Marbella, 48 in Benahavís, 39 in Mijas, 27 in Benalmádena and 23 in Estepona.
Facilities for investors
The Andalusian authorities are relentless in their efforts to attract the interest of potential investors ready to build new properties in Marbella, Malaga and other cities. Last December, the regional government approved the LISTA law, a piece of legislation that will regulate and speed up the issuing of building permits. This will trigger the launch of new projects, attracting the interest of national and foreign investors.
It is also important to remember that in Andalusia there is still a reduced and unified transfer tax rate for secondary market properties, currently only 7% (for primary market properties, the tax rate is 10%). For more information on the costs associated with buying property on the Costa del Sol, see our other blog post, available here.
Favourable tax regulations are successfully attracting investors interested in buying property on the Costa del Sol and in the rest of the Autonomous Region, as confirmed by statistics from the Spanish property market. For many months now, Andalusia has been the undisputed leader in terms of the number of property purchases from the primary and secondary markets. What is more, this region was the only one of all the Spanish Autonomous Communities to boast a result of more than 100,000 transactions carried out in 2021. All indications are that this year could further improve on last year’s achievement.
