Our resident property expert, Mathew Wood of Hola Properties – headquartered in Lanjarón – reveals the current status of the local real estate market.
AT PRESENT in Granada and the Costa Tropical areas, key developments and emerging trends are shaping the region’s real estate environment. Whether you’re buying, selling, or simply monitoring the market, it pays to keep abreast of the latest statistics and movements.
Lecrín Valley: works licences and their impact
Lecrín Valley currently has 177 properties on the market, with an average asking price of €134,000 or €920 per square metre. However, a significant issue is occurring with works licences. Many sellers are finding that incomplete or outdated works licences are hindering their ability to sell. This problem frequently stems from past renovations that weren’t properly documented or don’t meet current legal standards. Sellers are facing additional works and lengthy processes to straighten out their situation, which can delay sales by up to a year. It’s crucial for homeowners to ensure that their paperwork is correct before they plan to sell.
Lanjarón: Tourist licences and AFO regulations
In Lanjarón, 134 properties are available, with an average asking price of €102,500 or €876 per square metre. Notably, while property prices have slightly decreased, the price per square metre has increased, indicating a shift in market dynamics. A key concern in Lanjarón is the regulation surrounding AFO (Asimilado Fuera de Ordenación) properties and tourist licences. A recen BOJA (Official Bulletin of the Andalusian Government) decree has made it more difficult for AFO properties to obtain or maintain tourist licences. This change is likely to affect many property owners, especially those relying on tourist rentals for income. Non-compliance with updated regulations can result in licence revocation.
Órgiva: First occupation licences and market trends
Órgiva currently has 201 properties for sale, with an average asking price of €200,000 or €1,192 per square metre. The market here is experiencing a shift, with newer, high-quality properties selling quickly, leaving older stock on the market for longer. Buyers are increasingly focusing on properties within town limits, creating a high demand for homes in residential neighbourhoods. Another issue is the confusion between the Licencia de Primera Ocupación (First Occupation Licence) and the AFO. Many buyers and sellers are unsure of the differences, leading to complications during transactions, particularly when legalising properties for habitation.
Salobreña and Vélez de Benaudalla: coastal market overview
In Salobreña, a popular coastal town, 215 properties are available, with an average asking price of €278,000. Meanwhile, Vélez de Benaudalla has 85 properties on the market, with an average asking price of €183,000. Both areas have seen slight fluctuations in property values but, overall, demand remains steady, particularly from international buyers. Interestingly, there’s a growing trend of buyers from northern Europe and Russia moving inland, driven by rising coastal property prices.
Broader market trends: tourism and Golden Visas
Across Granada and the Costa Tropical, demand from international buyers remains robust, particularly those hailing from the US and Poland. However, the tightening of regulations on tourist licences is causing some buyers to reconsider purchasing properties for rental purposes. This has led to a surge in demand for properties with existing licences, as the risk of losing a licence has become a significant concern.
On a more positive note, the anticipated revocation of Spain’s Golden Visa programme, which caused a recent rush on property purchases in the €350,000 to €700,000 range, has been delayed. This has reignited interest among potential buyers in this price bracket, although the opportunity is expected to be short-lived.
Where are we heading?
The property market in Granada and the Costa Tropical continues to evolve, influenced by regulatory changes, international buyer trends, and local market conditions. For those looking to buy or sell in the region, staying informed and ensuring all legal paperwork is correct is of prime importance. That is where consulting professional agents is your best plan!
Watch a video about the market trends here.
