The huge hole left by the COVID-19 pandemic in the economy is no secret to anyone, and the real estate sector does not escape this reality.
Although investments fell sharply in 2020, the sector shows improvements and is in a good time to buy a piece of land and start the construction of a custom home.
Spain represents the fourth country with the largest extension of land in Europe and has a geography where the tourist value of its coasts stands out; It has 17 autonomous communities, 50 provinces and 2 autonomous cities.
Transactions in the real estate market show a substantial increase compared to last year and by 2021 there is a growth of close to 30%.
The situation represents an opportunity for the most patient investors who have been able to take advantage of the drop in prices, mainly in the coastal area, such as Malaga, Cádiz and Alicante. The possibility of return on each investment is a fact once the flow of tourists normalizes and economic activity recovers.
Procedures to buy land
The procedures to buy land on the Mediterranean coast find potential clients among the foreigners who visit it every year, so with a lower flow of tourists the prices fall, and much more if it is in areas destined to construction.
It must be appreciated that Spain is the third country in the world that attracts the most visitors annually , people from all over the planet enjoy its beaches and the intense summer that each season offers more than 2,500 hours of sunshine.
It is always a good time to buy land on the coast, projects and new homes have a favorable projection, although with several financing options.
There are some funds that offer construction support at a slightly higher interest rate, and the processes for obtaining credit are often demanding. So the possibility of getting a mortgage to buy land and shaping your construction takes on a lot of strength.
It is clear that there are some risks, but it is possible to assume them if you estimate the good signals of the market as the spread of the pandemic by Covid-19 decreases.
Build a house on the Costa del Sol
The real estate market on the coast is growing at a good pace and there is a great opportunity to get good options if you want a land for build a house in Malaga. This city is located in the south of Spain, a good part of its infrastructure is built around its beaches and from almost any angle it has a landscape value that few localities can offer.
According to recent statistics, Malaga is going through a good moment to buy land. This market opens up to new investment alternatives to stimulate the construction of brand new homes. For this year until the third quarter, the College of Architects of the city reports more than 4,000 units approved.
At this moment it is possible to buy a land to build a house in Malaga quite safely. The balance favors the construction of multi-family dwellings and, in second place, single-family dwellings are located.
The procedures to buy land facilitate the construction of new works with more homes completed between April and June. It is a market that is recovering from the downturn that made it lose more than 20% during the past year. The municipalities that register the most construction activity are Fuengirola, Marbella and Estepona.
Mortgage to buy land
The possibilities of getting a mortgage to buy land is an alternative that many take to make their dream come true. In this type of loan you can mortgage your property to finance the construction of a new one. Normally, it does not work to pay for the land, it must be a specific good.
One of the advantages it offers is that it has a lower interest rate than a personal loan, but you must present documents that prove that the land is your property, registration in the property registry, construction project visa and a report issued by a recognized appraiser.
A point to value in order to know how to look for a land to buy is that its value can be paid with a financial instrument that adjusts to your payment capacity. A flexible option that applies to those looking to build their first home are self-promotion mortgages.
It is a tool that serves to cancel up to 80% of the value of the land and the financing entity delivers the money in several installments as construction progresses. In the first stage, you receive a contribution to start the beginning, followed by the certification of the work and a final contribution at the closing.
The payment is made monthly, but it applies to the execution of a project and not of a finished real estate. This type of instrument can be easier and faster to approve.
Is it a good time to buy land?
Malaga is definitely experiencing a very good time to buy land, since it is a market that has become very dynamic and it is estimated that before the end of this year it will be as healthy as before the pandemic.
The growing interest of firms in offering loans places the city as the fourth most important market, only surpassed by Madrid, Barcelona and Valencia.
Interest in buying homes is stimulated by financing conditions, which are currently flexible, added to the investment interest in a home that is appreciating thanks to the tourist and commercial activity in the area.
As it is a good that represents a long-term investment, it is necessary to know how to look for a land to buy and define what its characteristics should be according to our needs and those of the environment.
Many small investors today have the possibility of building their homes in the ideal place and with the dimensions that really make them feel comfortable.
At present, buyers demand properties with greater efficiency and where resources can be saved . It is possible to build more ventilated common areas with the entry of natural light, water saving and use systems and even to adapt the house to Artificial Intelligence devices to facilitate your daily routine.
At Site and Field, international constructor, we help you enjoy the house of your dreams, we manage the purchase of a plot and we carry out the construction of the home. Ask us without obligation the price to build a villa with a plot at info@siteandfield.com
