The United Kingdom’s investments in the Costa del Sol increases despite Brexit
Brexit’s uncertainty does not stop British hedge funds’ investments in the Costa del Sol’s luxury housing market, with new projects for 2017.
British housing investors are betting to keep investing in Spain despite Brexit’s generated uncertainty, especially, in the Andalusian Costa del Sol. Those hedge funds will build luxury housing developments from 2017 as well as a mall. The most important projects are the following:
– Round Hill Capital: this fund recently purchased E30m’s worth 50 hectares at Sareb, in the village of Ojén, where around 600 luxury apartments are planned to be built. Besides, it will also develop a ten-staged urbanization project in which another E200m will be invested.
–Intu: it is thought to rise at Torremolinos the biggest Andalusia’s Mall in a 200.000 square meters surface. It will invest 600 million and other 500 will be provided by the established operators at the new shopping center. The project that will last two and a half years depends on the City Hall to approve the Land Use planning (PGOU). It is estimated that once built, it employs over 4.000 workers.
–Pacific Investment: this investing group is planning to build in Marbella, five luxury villas in lots between 2.000 and 3.000 square meters that will mean an E25m’s investment. Besides, each villa will be worth seven million euros.
–Kronos Home: this real estate agency have planned to build up to 70 luxury apartments in Estepona, a town that has already authorized licenses for other 198 luxury houses more this year.
Costa del Sol is one of the main British tourist destinations in Spain and one of the most important Brexpats‘ communities are established there. Despite Brexit, which concerns expatriates on visa’s issues, among others and the Spanish Tax Agency‘s tax surveillance, which it is conducting numerous inspections in this area, this Malaga’s coastal corner does not lose the interest for the British.
Thus, the British Chamber of Commerce entrusted a report to the AFI’s consortium on the “British investment’s perspectives in Spain”. The document showed that, firstly, neither the Brexit’s uncertainty nor the Spanish caretaker government’s situation affected British direct investments in Spain during the 2016’s first semester.
Secondly, 64% of the British businesses in Spain consider that Brexit won’t change its investments in our country, while up to 28% highlight that it does will provoke an investment drop. Around 8% of them notice that it would increase its investments and its presence in the Spanish market.
The United Kingdom represents up to 11% of total Spain’s direct foreign investments. In light of Brexit, protecting the British commercial relations both with Spain and with rest of the European Union should one of the main priorities.
Del Canto Chambers’ Editorial Board