JOSÉ FÉLIX PEÑA
Andalusia comprises 8,384,408 sq. km, equivalent to 17.3% of Spain’s total area. One of the largest regions in Spain, Andalusia is the same size as many European countries. The region is home to 8,379,820 people, the largest population in Spain. Andalusia has a population density of 96 people per sq. km – mostly concentrated in the provincial capitals and along the coast – and it also boasts one of the strongest economies in Spain.
Málaga has become Andalusia’s key economic driver. In 2018, the province was the second most populous in Andalusia, equating to 19.57% of the region’s total population. In terms of GDP, the province makes up 20.61% of the total for the region, solidifying its economy for another year within Andalusia. In recent years, the province of Málaga has continually outperformed the rest of Andalusia in terms of economic activity, appealing to a wide range of investors. The province is a major draw for employment and is ranked third in Spain in terms of job creation behind Madrid and Barcelona and the first in Andalusia. In 2019, 5,248 new companies were created in Málaga, 36% more than its follower, Seville. Furthermore, during the last year it accounted for 34% of all the companies incorporated in Andalusia. This growth rate in the number of companies represents a significant boost to job creation, which boasts among the lowest unemployment rates in Andalusia in 2019 (18% average) and recording a very good first quarter in 2020 (19%).
Málaga is the eponymous capital of its province, the sixth most populated city in Spain and the second largest in Andalusia, behind Seville. It is the most densely populated city on the 160 km stretch of the Costa del Sol. The city’s wider metropolitan area has spilled over into 12 municipalities surrounding the city and is home to 1,630,615 residents. Its bustling economy is largely reliant on tourism, services and industry, with new technology seeing a significant rise in recent years.
Financial crisis that crippled the construction sector.
Health crisis, which will have economic ramifications.
Highly-indebted real estate companies.
Real estate companies with contained leverage: financing the developer with pre-sales.
High interest rates at 5% or 6%.
Interest types at historical lows.
Liquidity crisis following market collapse.
Liquidity levels in capital markets continue to peak.
Primarily national investors and capital.
Strong presence of foreign capital and investors, who continue to bet on Spain.
Highly-concentrated residential market, mostly limited to home sales.
Diversified residential market: sale of new developments, rental market, student residences and health caret.