Scandinavian and Central European Markets Dispel the Shadow of ‘Brexit’ on the Costa del Sol’s Real Estate Sector
Having already sold 50% of homes in Phase 1, Palo Alto is supporting this trend with German, Belgian, Dutch and Norwegian buyers heading their sales figures.
Marbella, January 25th 2017: Since the ‘Brexit’ ruling after the June 2016 referendum, when the British public made the decision to leave the European Union, the Costa del Sol’s property market has been awash with uncertainty. Historically, the Costa del Sol has always benefitted from private investment from the United Kingdom.
However, renewed interest in the Andalusian coast from Scandinavian and Central European markets is dispelling the shadow of ‘Brexit’ on the real estate sector. This is reflected on a national level in the figures for the third trimester of 2016 from the Spanish Real Estate Statistics Records, as well as on a local level in terms of the luxury property sales at the Palo Alto development in Ojén.
According to the Statistics Records, foreign buyer numbers appear to have stabilised at a figure above 13%, which maintains a position as one of the all-time highs. Britons come top of this list, just as when the research began in 2006. However, the market accumulates three consecutive trimesters, losing traction in relative terms and giving rise to figures under 20%. In fact, the decrease between the second and third trimester of 2016 is especially marked, dropping from 19.73% to 17.66%, demonstrating a decrease of almost 2%.
French buyers, who increased by nearly 2%, come in second, with 8.91%. This significant growth renders them one of the most active nations, with their increase compensating in part for the reduced British demand. Germans (7.32%), Swiss (7.14%) and Belgians (6.2%) come third, fourth and fifth respectively in the rankings for buying a second home in Spain, strengthening their presence in the housing market and increasing their importance both in absolute and relative terms. These figures compensate for the decrease in British investment and maintain the sales figures to match up to those in previous years.
With 50% of its first phase sold, Palo Alto supports this trend on the Costa del Sol. According to their own buyer statistics; Germans and Belgians top the sales figures with 38% and 15% respectively. Norwegian, Italian, Dutch and Spanish buyers follow behind, all with a figure of 6%, while French constitute half of that, at 3%.
Accordingly, Sales Director Simon Boxus explains: “The crucial commitment by the developer and architects to quality of design and materials and the privileged environment, together with the recovery of the economy at both a national and international level means that Europeans view the Costa del Sol as an exceptional destination”.
“In these circumstances, destinations like Ojén, where we are developing the Palo Alto project, offer both physical and legal security”, he continues.
“According to the figures deduced from both the luxury reservations and the marketing reports, the decrease in the British market is undeniable. However, German, French, Belgian, Italian, Dutch, Spanish and Norwegian buyers have found an answer to their demands for high-quality real estate in Palo Alto”, Boxus concludes.
More about Palo Alto
With 250 million euros investment, Round Hill Capital, a leading global property investment firm, is the developer in this project, designed by the prestigious, award-winning architecture studio Villarroel Torrico. Palo Alto is built on 50 hectares and offers a selection of spacious apartments, penthouses and villas in a low-density residential area.
Thanks to its cutting-edge contemporary architectural design, Palo Alto combines the best quality amenities to cater for the necessities of active modern life with the very best nature can offer. Nestled in the incomparable natural beauty of Ojén and only a few minutes away from bustling Marbella, Palo Alto impresses primarily for its location, which offers panoramic views of the mountain and sea.
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