Overview of residential new developments in Malaga – Guide to Limonar, Malagas most exclusive area.

Malaga has undergone and continues to undergo a spectacular cultural and infrastructural transformation and is now called the “gateway to the Mediterranean”. Barcelona has long been the first choice of international investors, but this has been postponed in the face of political chaos in Catalonia. Most people now turn to Malaga, where prices still have not risen as quickly as in other popular metropolitan areas in Spain, and only last year the city saw strong economic growth of 4.4%. This in combination of several major public and cultural initiatives in recent years, such as giving life to new pedestrian streets by banning car traffic, building a modern port, significantly improving communications, widening avenues and launching targeted investments in world-class gastronomy, culture and art.

Despite this rapid development, prices in Malaga are still about 30% lower than they were about 10 years ago. However, prices are rising rapidly and according to Spanish economic institutes, it is expected that prices in the Spanish housing market will rise the fastest in Malaga, from 2020 onwards

Malaga is doing everything right  with the expansion of the metro and the investment to become a cultural capital of the Mediterranean. For example, Antonio Banderas has recently opened a new notable theater in the city’s trendy SOHO district. In addition, from 2020, Malaga, together with Gothenburg, was named the capital of Smart Tourism in the EU. The primary focus is clearly on sustainable tourism. 

Developments in innovative green technology are strong in Malaga. Among other things, the city recently became an experimental “lab” for new, fully electric buses with a groundbreaking technology that means that the buses are loaded during the journey, and this technology is expected to be implemented around the world within a few years. In addition, the city is becoming a European hub for tech companies through Andalusia Technology Park, which already houses over 600 tech companies, such as Google and Oracle

Most Spanish construction companies and developers have begun to concentrate their efforts on Malaga City. One of the larger ones that has recently made this shift is Nuovit Group, which together with our mother company spanskafastigheter.se is launching a venture into the international market with a proven Spanish working model, which cuts off the promoter (in cases where this is possible, such as with the project ” Hexagon ”in the Limonar area found below) and cut prices without compromising quality or safety for the client. The big challenge, and the key to success in a “boom-market” like Malaga, is to find plots in attractive locations at prices below market value – and at this point Nuovit is the market leader

In this article we will go through:

  • Rental potential and expected value increase for housing in, among others, Limonar, Malaga
  • Important information about new rental laws in the province of Malaga and how we will solve this for our investors
  • Short guide to Malaga’s most exclusive area Limonar / Malagueta
  • Presentation of 3 new production projects in Limonar. Ca. 25% lower prices than neighboring projects.
  • Statistics and information on why so many investors are flocking to Malaga
  • Information about different types of amusement parks and other tourist attractions in the Malaga area

Long-term value growth and rental income

The national statistical authority recently published figures that shed light on the rental market in Spain. Rents have risen by 50% since 2013. The largest price increases have been in Palma, Barcelona and Malaga. In the Costa del Sol, short-term rentals against tourists have also increased significantly, and still do not seem to have reached their peak. In the first 7 months of this year, tourism in Malaga increased by 5.9% compared to the previous year. Even in these statistics, they go hand in hand, Malaga is at the top along with Barcelona and Palma. In the latter two areas, however, restrictions on renting out to tourists and sharp price increases have significantly dampened the willingness to invest.

Later in this article we will present some new developments, but mainly one, Hexagon, which benefits from lower prices per square meter than its competitors, as well as an elevated position with sea views for all apartments. The rental potential in this exclusive area, Limonar, is huge. According to statistics from Spainhouses.net, the average cost of a rental is 1800 € per month in Limonar (note that these statistics also include smaller and old apartments, without a view). This can be compared to lucrative Nerja, which attracts many  investors when the occupancy rate is higher there than, for example, in the Marbella area. Despite this, the average cost per month for rent is “only” 833 € in Nerja according to Spainhouses.net. NOTE! The figures are based on long-term rentals. Vacation rentals have significantly higher numbers.

Which areas are have most  demand in Malaga then? The historic neighborhoods, city center, and Malagueta / Limonar. We do not have any new apartments for rent in Limonar, but to bring in newly produced apartments in this exclusive part of the city is a bit like getting hold of the holy grail for rental companies. Many investors also feel great security in the fact that there is a strong demand for long-term rental from newly-relocated companies, lawyers, doctors, etc. These are also prepared to pay extra for the situation as well as newly produced.

According to the construction consultant’s analysis, the value increase in Limonar is expected to be approx. 7-8% per year over the next few years. Also note that off-plan projects, in growth areas (which, for example, was the case in Nerja on projects sold in 2016-2018), tend to increase in value by 25-30% during the construction process until moving in. In addition, Hexagon is about 20-25% cheaper than the corresponding apartments under construction / sales in the area.

Important new rental laws

Renting out your home to tourists per week or from month to month is a fast growing business in Malaga. To regulate this market, Andalucia has chosen a different route compared to, for example, Barcelona and Palma or the Canary Islands where the restrictions are very strict and apply in principle to all housing regardless of what the residents in different areas themselves think, a new law came into force in March 2019.

The new law makes it easier for community associations to decide for themselves the restrictions on the owners’ right to rent out their homes. The restriction only applies to rentals that are shorter  than 2 months. The problem, however, is that owners, as a rule, earn significantly more money from renting out shorter periods. Under the new law, housing associations throughout the province of Malaga can prohibit or restrict leasing for tourist purposes by raising it for voting at an association meeting. It is enough for three-fifths of the owners to vote for a ban for that to apply. This is therefore not a problem in places such as Nerja where the majority of the owners are foreigners who are happy to rent out their homes when they are not there to finance loan and costs.

About Limonar and Malagueta
El Limonar is the most exclusive area in Malaga with its beautiful mansions, large trees, green lushness and narrow streets. The area’s modern history began in the late 1800s when Malaga was one of Spain’s leading cities, with a commercial capacity only surpassed by Catalan Barcelona. In the late 1800s and early 1900s, new European magnates also began to discover that it is very nice and healing to relax by the sea. El Limonar quickly became popular for the newly rich because of the clean air and perfect location on the Mediterranean beaches. Between 1885 and 1900, European business magnates built numerous grand mansions and hotels. Several of these still remain today, mainly around the main street Paseo del Limonar.

1865 -Port and cathedral of Malaga

History repeats itself.

Malaga is once again entering a period of greatness and it is still El Limonar, as well as parts of the historic neighborhoods and areas around SOHO, that attract the strongest capital. The area is secluded and close to La Caleta beach and only 25 

minutes walk from the center. The area is very demanded by families and couples who want to be close to both the city pulse and the beach, but still be able to enjoy the tranquility of beautiful  neighborhoods, conveniently away from the highway’s alarm. Limonar is on hills and enjoys spectacular views of the sea. The houses and apartments found in the area are among the most described in Spain. El Limonar is located just north of Malagueta, but the big difference is that it is a quieter area, characterized by peace and quiet in a more lush landscape. The Malagueta beach (which joins La Caleta) is one of the city’s most popular beaches.

In the Malagueta area there are also many other attractions worth noting, such as: the English cemetery which is considered one of the most culturally and historically important cemeteries in Europe. Here is also the Gibralfaro castle from the 15th century (located on a lighthouse formerly used by the Phoenicians and Romans). Here you also find Malaga’s best view from the Muelle Uno pier which opened as late as 2011. Here is also the world famous Pompidou center. In the area you can also see the bullfighting arena from the 19th century, museum and most trendy cafes and restaurants etc.
To the east of Limonar you will find the very nice area of Pedregalejo, and its lovely beach.

Video guide of Malaga’s areas can be found below. At 1:21 some nice views from Malagueta and Limonar.

Newly built apartments in Limonar – Malaga
13-14% in taxes etc. are added to all prices in all the projects below.

Note that the projects Hexagon, Limonar Last and Limonar 20 are so-called construction communities, a project model that pushes prices down sharply. Therefore, there are several special laws. For example, an individual, or company, may make a maximum of 2 purchases per construction community. Read more about building communities in Spain and why it is the future in the Spanish housing market in the “News” section. 

Hexagon – Colinas del Limonar (release 28/11)
[Update December 5. 4 apartments are already reserved. Several, who are interested but have not yet seen the area, are booked in January / February. It is possible to book a viewing during the Christmas holidays as we always have at least one broker in place].

The reason we have chosen to market Hexagon to mainly Scandinavians is the competitive prices and the elevated southern location with sea views. The apartments will also enjoy a large community pool.

– 12 bright and modern apartments, of which 4 penthouses (note that these have less living space but 2 terraces of which 1 roof terrace). 4 apartments with 3 bedrooms, 8 with 2 bedrooms. Large terraces. 2 parking spaces are included (including 1 underground with garage lift, see photo below) and storage room and kitchen included in the price. Bicycle parking, electric bicycle charging, etc. Note! For those who rent through us Scandicfeelrentals.com there will be 2 electric bikes per apartment. The idea is that tenants should be able to rent these for a certain fee, but you can use them for free during the periods you stay in the apartment.

Building areas: 76.23 m2-122, 15 m2 (note that many other projects, for example Idealista, in many cases also include terrace areas in the total area).

Terrace areas: 26 m2 – 60 m2.

Prices from: 330,000 – 443,000 €

Hexagon is, with its desired location, perfect for vacation rental and as we wrote above, we have ensured that renting out is not limited to long term rental in this urbanization, which gives this a great advantage over other projects sold to mainly national buyers who often vote against the possibility of rent out to tourists on a weekly basis.

All apartments have views of the sea as the ground floors also rise high above ground level. Nothing can be built in front that will obscure the view. The wall ensures that there is no visibility from the pool area to the ground floor.

Close to everything. Hospitals, cafes, restaurants, gyms, health club, equestrian club and Corte Ingles supermarket etc .. 10 minute bike ride to central Malaga along mildly busy roads. About 25 minutes walk to the beach (around. 1 km.). 5-10 minutes by bike.

Several projects are being built in this elevated part of Limonar, and the advantage is that when Hexagon is complete, all other projects are also completed, which means that you do not have to stay at a construction site. The prices of neighboring projects (for 3 bedrooms) are in the range of 550-650 000 €.

Fully equipped kitchen included. Refrigerator, micro, electric oven, built-in dishwasher and washing machine, fan, induction hob. Kitchen counter Silestone.

Double glazed windows designed to maximize light emission.

Building adapted for the disabled. Elevator in the building (with low energy consumption).

Aerothermal system (A / C) that provides an energy efficient and environmentally friendly heating of the home.

The pool area is 19, 20 x 4.50 meters which is a large pool in relation to the number of apartments.

Construction starts when 70% are sold out. Construction time is about 18 months.

Financing. Loan option via the “Architects’ Bank” Arquia Banca. Up to 65%. Flexible application with . Among other things, you do not need to hire an authorized translator for the requested documents. We and our lawyer and the project auditor guide you through the entire process, including assistance with electricity, water, insurance, etc. after purchase. The bank director is also happy to answer questions regarding the guarantee etc. if desired. Note that the buyer must be approved by the bank regardless of whether he or she should have a loan (for increased security).

Bank guarantee.

We will handle everything practical about the apartments if the buyers so desire, including marketing, license application, etc. We have office and staff on site in Malaga. Below you can read about expected ROI, developed by Scandic Feel Rentals and a housing market consultant, which estimates income and expenses on both rental and value added (it does not, however, deduct any tax). The rental income for a 2 bedroom apartment is estimated to be € 33,000 per year, gross.

Payment plan. Reservation amount of € 5,000 and € 500 to become a member of the association. Then paid in as follows: 25% (when signing a purchase contract), and an additional 10% during the construction phase. That is, 35% for a certain period of time before moving in. Note that the loan is not activated until the move-in. You do not have to pat any interest rate during the construction period.

Estimated area fee: 1200-1500 € per year (final amount determined after occupancy)

Property tax: Around € 400 per year.

PDF: 

Estimated-Return-of-Investment-Malaga-Hexagon

 

You can see other projects in Malaga below

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