The Ministry of Housing has begun releasing annual data on new developments being started, finished, and sales of those newly built properties at Malaga’s Province. Analyzing this data from 2004 to 2023 provides several key insights:
1. Decreasing Stock of New Units. The stock of new build properties is steadily declining as they continue to sell quickly. Although the latest stock data won't be available until June 20th, the trend is clear: a consistent decrease since 2008 following the global financial crisis. This reduction indicates a strong market with high demand.
2. Lower Construction Activity. Despite the number of comments I received about the number cranes and new units under construction, current building activity is significantly lower than it was between 2003 and 2007. For example, in 2005, the number of completed properties was eight times higher than it is today (40,000 vs. 5,000). The previous construction boom was driven by easy access to loans, which contributed to the 2008 crash. Today, loans are more controlled, and developers are more experienced, creating a more stable market.
3. Supply, Demand, and Rising Prices. The high demand for new build properties, combined with a limited supply, is pushing prices up. The number of new units being completed is much lower than during the peak years of 2003-2007, leading to an imbalance between supply and demand. In Marbella, for instance, the price of new units has increased by an average of 17.9% per year over the last three years, compared to a 9.2% annual increase for second-hand homes during the same period.
In summary, the market for newly built homes in Marbella and Benahavis is currently experiencing significant dynamism and strength. With historically low stock levels and high demand, prices for new developments are rising. This robust market presents excellent opportunities for both buyers and investors.