construction investment in malaga

Construction

Throughout 2017 there is a favourable evolution in this sector, which breaks with the negative trend of recent years. In this sense, the Association of Architects approved 4,895 homes in Malaga, of which 1.095 corresponded to the capital, which represents a 64% increase over the previous year. We can’t yet talk about recovery, however, since, overall, in the last eleven years, the construction of housing in Malaga decreased by 83%. The turning point in construction can be marked in 2006 (with 45,660 approvals).

The incipient activity in the industry is general in all types of projects. In the case of the Protected Housing (VPO) there are 125 projects approved, 118 of them concentrated in Malaga, a much higher number than the 26 approved last year.

From the previous data we can see that new construction is the driving force of recovery, although, until now, the sale of second-hand homes has been the one that has maintained an upward rate and is the one actually leading the real estate market.

Housing approved in Malaga 2002-2017

Viviendas_visadas_malaga_20022017

Source: Author’s compilation based on data gathered by the Association of Architects.

Real State purchased by foreigners

Considering the sales per thousand inhabitants, Málaga continues to be among the main provinces in Spain where more real estate transactions were made by foreigners throughout 2017.

TOTAL

(National Institute of Statistics and Census data)

FOREIGNERS

(Ministry of Public Works data)

SPAIN 454.423 59.074
ANDALUSIA 89.337 12.364
MALAGA 30.064 8.920

 

The 8,920 units sold to foreigners in Malaga accounted for 72% of the total homes sold to foreigners in Andalusia and 15% of those sold to foreigners throughout Spain.

Likewise, the 8,920 units sold in Malaga accounted for 33% of the total homes sold in Andalusia, and 6.62% in all of Spain, which evidences the sector’s improvement.

The origin of foreign buyers of homes continues to be led by Great Britain, followed by other countries such as Germany, Belgium, Sweden and Italy.

The favourite location of the foreign home buyers continues to be the Costa del Sol.

Civil works, investment and public tenders

The total of the works tendered by the different Public Administrations in Andalusia during 2017 reached 1,347 million euros, a much higher item than that of 2016, with an increase of 47%.

The State has gone from hiring 246 million euros in 2016 to 361 in 2017, which means an increase of 46%. The Junta de Andalucía (regional government), meanwhile, has gone from hiring 271 to 438 million euros, which means an increase of 62%. As you can see from the data gathered there has been an important upturn.

licitaciones

Source: Association of Builders and Developers (ACP)

Also, in the province of Malaga, the number of public tenders has considerably decreased, except in this last year. Thus, the total investment for Malaga in 2017, was bid for 353,83 million euros, which amounts to an increase of 89% with respect to 2016.

The evolution of the number of tenders in the province during the 2016-2017 period, coming from the three administrations, can be seen in the following table.:

Public Tenders in the province of Malaga by administrations in millions of euros

PUBLIC TENDERS YEAR 2016 YEAR 2017 %
LOCAL ADMINISTRATION 100,95 208,95 106,98
REGIONAL ADMINISTRATION 50,72 66,82 31,74
NATIONAL ADMINISTRATION 36,01 78,05 116,75
TOTAL 187,68 353,82 88,52

Source: Association of Builders and Developers (ACP)

 

Public Tenders in the province of Malaga by Administrations

licitaciones_Admonpublica

Source: Association of Builders and Developers (ACP)