As we approach the final quarter of 2022, the Costa del Sol's property market reflects a remarkably positive year, characterized by a robust upward trend in prices, according to the latest data. Tinsa's official figures reveal an impressive 8.2% year-on-year increase in the average property price (new and resale) by the end of the second quarter, with a 2.4% rise from the first quarter of 2022. While the volume of sales is marginally lower than 2021, the surge in sales from January to June suggests an active and resilient market.
The Tinsa report emphasizes that demand remains vibrant, coupled with limited supply, propelling prices upwards. The first quarter of 2022 witnessed a record-breaking pace, with 181 property sales occurring daily – the swiftest rate since 2007. Comparatively, sales in Q1 2022 were 33.4% higher than in Q1 2019, signifying a commendable post-pandemic recovery. Despite potential challenges posed by rising interest rates, mortgage market shifts, and increased living costs, demand may experience a temporary slowdown in the final months of 2022. However, a resurgence is anticipated in January and February 2023, the traditional peak season for buyers seeking 'sunshine' properties.
Looking ahead to 2023, a notable challenge may emerge in the form of a diminishing supply of properties for sale, as highlighted by CaixaBank Research. The market's reliance on new builds to meet demand, particularly in Málaga province, where construction remains active, could encounter headwinds due to escalating construction costs and a decline in the workforce.
International buyers continue to flock to the Costa del Sol, constituting a substantial 33.4% share of the market. The numbers surpass those of 2021, with expectations of continued growth driven by retiring Baby Boomers and a younger generation of remote workers and entrepreneurs seeking a more relaxed Mediterranean lifestyle.
Despite the buoyancy in the market, CaixaBank reassures that it remains far from overheated, emphasizing that Spanish property still offers excellent value compared to other European markets. As we navigate the remainder of 2022, the forecast is for a steady and stable market, carrying this momentum into 2023, albeit at a potentially more measured pace.
If you're considering a property purchase on the Costa del Sol, reach out to us. At Ultimate Lifestyles, we go the extra mile to help you find your ideal Mediterranean home.