Foreign Real Estate Investment in Málaga and its Presence in the Spanish Mediterranean

Abstract

Foreign investment has traditionally played an important role in the real estate sector on the Costa del Sol, and since 2014, it has focused its attention on the real estate development business sector through international development companies and development companies linked to investment funds. The aim of this study is to explore the extent of their participation in the property development market in the province, as well as to evaluate the differences and similarities of this participation with respect to those existing in other tourist destinations in the Spanish Mediterranean. The methodology is based on data on new-build homes offered, provided by the main real estate portals operating in Spain. The data allows to confirm that companies linked to foreign companies lead the market for new-build homes on the Costa del Sol and its province, with a share above that of national and local developers, and with a greater market share than in mature Mediterranean tourist markets such as Alicante and the Balearic Islands. In addition, the new emerging technology sectors represent an opportunity for the local real estate market by generating new demand for housing in the most dynamic and touristic areas of the city.