La Alcaidesa's Transformation
La Alcaidesa, a coastal region in southern Spain, is undergoing notable developments. The Fairmont La Hacienda Costa del Sol, a luxury five-star hotel, opened its doors on February 21, 2025, following an investment of €130 million. This establishment enhances the area's appeal, potentially increasing property values and attracting upscale tourism.
Several residential developments are slated for completion in 2025, offering diverse options for buyers:
Annapurna II: Located in Monforte del Cid, this project features two-bedroom flats starting from €365,000, with completion expected in 2025.
Amara: Situated in Santa Pola, Amara comprises three-bedroom flats starting from €310,000, with an anticipated completion date in April 2025.
Market Dynamics and Regulatory Proposals
Spain's property market continues to recover, albeit with moderated growth. In January 2025, housing transactions rose by 8.8% year-on-year, totaling 60,033 sales nationwide. New mortgage registrations increased by 9.4%, reaching 37,651. These figures suggest a stabilizing market following a robust performance in late 2024.
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To address housing affordability, the Spanish government has proposed a 100% tax on property purchases by non-EU, non-resident buyers. Announced in January 2025, this measure aims to prioritize homes for residents and mitigate the impact of foreign investment on property prices. If implemented, this tax could significantly affect foreign investment, particularly in coastal and tourist-heavy regions.
Additionally, new regulations for short-term rentals have been introduced. Property owners must now register and obtain permits before listing on platforms like Airbnb. There is also a proposal to increase VAT on short-term rentals, which could raise accommodation costs.
Outlook for International Buyers
Despite potential policy changes, Spain remains an attractive destination for property investment due to its desirable climate, high quality of life, and strong tourism sector. However, international buyers, particularly non-EU residents, should closely monitor these regulatory developments, as they could impact the feasibility and profitability of property investments in Spain.
In summary, Spain's property market in March 2025 is characterized by new developments and evolving regulations. Prospective buyers and investors are advised to stay informed about these changes to navigate the market effectively.
