Impact of foreigners in Malaga´s tourism and real estate

Impact of foreigners in Malaga´s tourism and real estate

13.18% of all properties acquired in the area were bought by foreigners

 Malaga´s tourism and real estate

Malaga´s tourism and real estate

 

More than 85% of the properties bought in the region are purchased by foreigners, following the statistics of the real estate market. In the second amazing part it is just one of the ideas on the real estate market of the smartest city in Spain, exposed by the report on the Malaga coast in the real estate market in 2016. The number is much higher than the national media with data from the Spanish Registrars show that 13.18% of all properties acquired in the area were foreigners in the quarter 4 of 2015 of these, over 60% were buyers from European Union, says Ignacio Acosta.

EU buyers have visited the city since the 60’s and the popularity of the area makes continues unabated. As world events have made some other less attractive tourist destinations in recent years, Spain and, in particular, the coast remains a little safe height and quality destination for those wishing to enjoy their unique lifestyle and cosmopolitan nature.

The first impact is with the purchase of housing, which already generate revenues to the City. We talk about high cost houses that need some care and, consequently, few jobs. Service cleaning, gardening, the maintenance and others involve hiring in the city. Apart from this, foreign large amounts of money on shopping and restaurants that affect the economic engine of the Marbella society are spent.

Why choose Marbella to live overseas?

The city has adapted perfectly to this new reality. The local administration is working to make this happen. Foreigners, in addition to good weather, come to a city that offers all kinds of services. In Marbella you can find shops of big brands and designers. There are also car dealerships as well as a high-end leisure offer for all tastes. Another factor affecting the quality of life for their children. Children can play sports outdoors and have a selection of quality international schools where they pursue their studies.

Foreigners investors in Malaga can now get their residence permit if they purchase a home by a greater amount to 500,000 euros. In addition, if not more than six months a year do not have to be tax residents and their children can be educated in other countries. This did not exist before and withdrew many investments.

 

 

Tourism: All start with one visit

Malaga has received 5.2 million tourists last summer, representing six percent more than last year on the same date, these travelers have generated an economic impact on the fate of almost 4.5 million euros. The president of the council and the Tourist Board Malaga-Costa del Sol, Elias Bendodo, has presented  the tourist data from June to September of last year, failing to increase the balance with the data collected in the month of October. The Costa del Sol has been a historic summer that improve data last year and reach milestones in some categories,” he underlined.

Thus Bendodo explained that the destination Malaga Costa del Sol has grown in the summer over Andalusia and the national total, besides tourism in the province has offered this very healthy symptoms summer that improve those already obtained in 2012.

After the first visit, most of the tourist become fecuent, and some invest in real estate

After the first visit, most of the tourist become fecuent, and some invest in real estate

Board chairman stressed that in this period there was an increase of seven percent of foreign travelers and increased four percent of domestic visitors to the province. The economic impact has reached 4,475 million euros during the summer period, representing an increase of almost 21 percent more than in the same period of 2012, in which 3,700 million euros were collected, according to data provided by the head of the entity.

Moreover, according Bendodo indicated, referring to the budget traveler, the increase has been “remarkable” as it stands at 860 euros, last summer when it was 755 euros. Also, the average stay travelers who have been in the province has been 9.62 days.

This year, “domestic tourism has had a recovery,” Bendodo indicated, since as explained has reached over 22,352 Spanish visitors, representing an increase of 2.90 percent over the previous year, for a total of 793,511. Foreigners continue to experience an upward trend in recent times, as they have reached 55,879 more, with an increase of 7.22 percent, a total of 830,224 tourists.

In this sense, compared to Spain and Andalucia, Malaga reached in passenger numbers growing faster than the first two –ya did in the month of august, since the increase in Andalusia is 4.98 percent Spain and 2.20 percent, doubling Málaga national data. With regard to overnight stays, the province increased by 6.98 percent, outperforming Andalusia 5.98 percent and 1.96 percent Spain.

Bendodo stressed that the province has registered this summer the highest overnight stays history number, 6,663,960 were 6.362.027 in 2008, representing an increase of 6.98 percent over the same period 2012. the growth in the number of overnight stays are similar between national, rising 6.56 percent and abroad, an increase of 7.25 percent.

 

 

The backbone: Residential tourism

Despite times of crisis, residential tourism is maintained. Data from the Institute of Statistics and Cartography of Andalusia guarantee that the strength of the destination as a pole of attraction of new foreign residents continues to rise, specially with new opportunities like the entrepreneurs law. In fact, some have seen in the Spanish crisis a unique opportunity to buy a home at much lower prices. The Russian market is one that currently holds the interest in the Costa del Sol. The large mansions and luxury homes are your choice.

Councillor for Tourism of Marbella, José Luis Hernández, residential tourism is currently the fundamental pillar on which the economic engine of this city is sustained,” he explained. The mayor noted that the growth in the number of citizens from outside Spain who choose to settle here remains a reality despite the times of crisis and predicts that the numbers continue to grow in the coming years. “The projected aging of the European population over the next years shows us that tourism will continue to rise residence also becoming a very important for the revival of our real estate market factor,” he said.

Keep in mind that all foreigners who decide to invest in Marbella have first been in the city as tourists, have stayed at our hotels and know and our leisure. Usually they visit the town on several occasions until they decide to buy a home. Happy always they displayed after the decision although some may hesitate at first.

The Villas are the greatest attraction in real estate market

The Villas are the greatest attraction in real estate market

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This contribution to the GDP is foreign tourism residential assume half of what it brings to the whole economy Malaga tourism, rose to 26.8% induced the impact that tourism spending has in the province to mobilize this activity , economic engine, a production of 7.500 million euros last year. Measured in employment it meant 82,690 jobs which directly and indirectly boosted the tourism industry, ie 15.2% of the total. Foreign tourism in Málaga provided in this case 19.8% of GDP and 11.5% of employment.

This economist reaches these conclusions from that in 2012 stayed in hotels 4.3 million tourists, generating 16 million overnight stays, and housing 2.1 million passengers, which recorded 68.3 million overnight stays in the destination. Of these, 750,000 were foreigners in the province totaled 41.6 million overnight stays.

But also it highlighted the impact that this flow of foreign residents has both the construction sector and promotion, as in the same population, indicating that added to the census these international travelers who stayed at homes last year would increase on the present inhabitants of 9.4%.

As for the impact on the real estate sector, foreign investments made and non-residents in new housing, 163 million generated around 2.7% of GDP and 1.1% of employment. José Antonio Muñoz Lopez also quantified the consumption of foreign residents in Malaga, noting that contributed 14.4% to the wealth of the province, claiming 6.1% of jobs.

The power of this sector as a generator of wealth and said that in twenty years several developments on the Coast have generated between 1,500 and 1,600 million euros in investment and have held two thousand direct jobs and almost double indirectly. At present this sector guarantee employment to 1,000 people, to point out that more than half of employees in tourism carry out their duties in the residential.

A foreign resident in a residential area of Marbella generates more jobs than small and medium enterprises that dominate the business fabric of the province. And it said that foreigners with housing developments  usually have two to three people working at home, with cases that are not exceptional, to have a service for eight employees. Residential tourism is a unique phenomenon in the Costa and is a weight of 40% in Andalusia, says our real estate expert.

 

 

The most visited municipalities

According to data between locations that analyzes the National Statistics Institute (INE), there has been an increase in general and only two municipalities have lost travelers – Malaga and Marbella. In contrast, Fuengirola achieved the largest increase in visitors staying with an increase of 20.98 percent and overnight stays, an increase of 20.74 percent.

Also, Nerja, with a rise of 17.47 percent, Benalmádena, 11.57 percent, and Ronda, 10.15 percent have offered blips in the number of travelers. On the other hand, Torremolinos is the town which brings together more hotels travelers followed by Malaga, Marbella and Benalmádena. The president of the provincial institution has indicated that the average stay of tourists hotel in Malaga has slightly increased this summer from 4.02 days to 4.09, and is higher than that of Andalusia, 3.30 days and the Spain, 3.78 days.

Stay down slightly in four municipalities, Benalmádena, Marbella, Nerja and Ronda, and increases in four others, Estepona, Fuengirola, Malaga and Torremolinos, ranging from 1.42 days on average in Ronda and 5.62 days Benalmádena.

According to data provided by the Chairman of the Board, during the summer they have opened an average of 602 by 622 hotel establishments last summer, decreasing by 3.1 percent. However, the estimated number of seats increased to 95,308 by 92,162 the previous year. Moreover, hotel occupancy rose to 72.38 percent and was higher than 2012 by 2.50 percent. As well as personnel employed, which remained around 14,000 workers, 0.73 percent less than in 2012.

 

 

 

Written by: CAPD

Words: 2015

Contribution to reader: Know wich is the role of the foreigner in the foreigners in the tourism and residential market of the region.

Main sources:

surinenglish.com/20131220/news/costasol-malaga/tourism-with-many-benefits-201312201037.html

theguardian.com/world/2014/apr/27/spain-cheap-costa-property-foreign-buyers

marbellafamilyfun.com/brexit-impact-on-marbella-real-estate.html

rentluxurylifemarbella.com/Private-Foreign-Investment-in-Developing-Countries–A-Quantitative-Study-on-the-Evaluation-of-Its-Macro-Economic-Impact

Secondary sources:

surinenglish.com/20141114/news/costasol-malaga/marbella-starts-campaign-foreigners-201411141110.html

marbellaexclusive.com/en/international-residents-community/registration-and-residency/701-municipal-registration-and-residency/3177/residence-permits-in-spain.html

propertyinvestortoday.co.uk/breaking-news/2016/6/foreigners-target-homes-in-marbella

marbellasolicitors.com/spanish-tax-foreigners/

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