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Engel & Völkers Licence Partner Spain > Blog > The coastal resorts as a great showcase for econommic recovery

The coastal resorts as a great showcase for econommic recovery

Spain has become one of the most attractive countries for real estate investment due its excellent value for money throughout the country. The housing market in Spain is in a process of recovery, with prices rising year after year with - with good prospects of recovering the investment - but still maintaining levels well below the era of the real estate boom.

The normalisation of the real estate market in Spain has concentrated in the big cities, being Madrid the main showcase of the recovery. However, coastal locations are where demand and supply have been seen and show better prospects for real estate investors. In addition to Marbella, cities like Manilva and Cádiz are leading the market for the purchase of homes on the Spanish coast.

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The islands and the Mediterranean coast have become the best areas in which to make an investment as a second residence because since 2007, the properties on the Mediterranean coast cost 45.5% less. This recovery also relates to the luxury homes market in Costa del Sol, with prices more competitive than they were a decade ago and with excellent prospects of investment returns.

It is important to note that 45% of the residential stock in Spain is located in coastal municipalities, where almost 54% of total real estate sales were concentrated in 2016. This data confirms that the main capital flow is in second residences located on the coast, with a high national and international demand to buy these types of properties.


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On this point, it is the foreign applicant that makes up the largest number of purchases of second homes, although national investors are increasingly able to purchase property thanks to the recovery of the economy, the reactivation of mortgages and improvement in the labour market. In both cases national investors also have a preference for homes located on the Mediterranean coast and on islands.

The recovery of second homes on the coast is being favoured by the improvement of foreign and domestic tourism in beach resorts, which encourages buyers to purchase homes to rent out to tourists or holiday makers; Another option to take advantage of is the last-minute sales of homes.

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