Foreigners opt to buy on the Andalusian coast and the Eastern Spanish Mediterranean
Foreigners opt to buy on the Andalusian coast and the Eastern Spanish Mediterranean

Coastal and beach destinations are steadily becoming the main markets for purchasing a second home in Spain. In addition, with the economic recovery from the financial crisis, the demand for new construction in these areas is picking up again, according to a study by Aedas Homes. In Spain, the Levante and the Costa del Sol are the destinations where buyers are most interested in acquiring new builds for use as holiday homes.

The demand for housing by the Spanish sea is mainly focussed on the acquisition of second homes, and there are evermore potential buyers interested in buying new constructions as opposed to used properties, according to the study prepared by Aedas Homes about the Demand for New Construction.

In place like the Costa del Sol, up to 76.8% of those interested in buying a new home do so to use it as a holiday home or a second residence. This is followed by the Levante (28.3%), while the national average for Spain is 19%. In the large cities, that figure is below 10%, with Barcelona (4.9%), Seville (1.6%) and Madrid (1.3%) being less popular destinations for holiday homes.

"Half of the potential buyers of a new home on the Costa del Sol are not Spanish. These ex-pats are mostly looking for two-bedroom homes to serve as a house that is not their main residence, a demand that does not correspond to that of other residential markets,” says Javier Sánchez, Director of Marketing and Innovation at Aedas Homes. “In addition, ex-pats value spacious rooms, views, terraces and places with services nearby."

Foreign buyers in Spain account for up to 75% of the market for potential buyers of new builds, especially those from northern Europe. Once again, this percentage remains high on the Costa del Sol and in the Levant, but drops considerably in other destinations such as cities.

The budget available to these potential buyers of new constructions on the Costa del Sol is close to 338,000 euro, second only to the purchasing power of property buyers in Madrid (490,000 euro).