Siesta for construction in Malaga

Spain’s Official School of Architects has recently released a report highlighting authorised productivity for construction of new homes in Malaga, and the figures make for shocking reading.

Overall since January 2009, the region has had 4,686 new home projects approved, but this is a shadow of last years figure for the same period, which stood at over 10,000.

Fewer than 30 homes have been approved by the institute over the last three months in many coastal regions.

The news is hardly surprising given that demand is virtually non existent and the market remains top heavy with supply.

Many owners who were originally selling a property in Spain, are also now reluctantly turning to other methods of retaining their investment, such as renting out. Thus demand is even further diluted in an investor thirsty market.

Property prices in Spain seem uncertain of their current foothold. The timely investor may want to wait and see what happens next before throwing the vendor any lifeline.