The influence of the real estate investment trust in the real estate sector on the Costa del Sol

Abstract

The presence of the real estate investment trust in the Spanish real estate market since 2013 has led a significant number of the housing stock being offered for rent in the most popular cities around the country. In the specific case of the Costa del Sol, it is necessary to evaluate the participation of these companies in the establishment of a stable business fabric of housing for rent as well as in the development sector for home sales. In addition, its membership of international financial circuits means that the effect of financing the economy on urban environments has to be taken into account. In order to assess the weight of the real estate investment trust in the development of the Costa del Sol, we turned to data on housing developments for sale provided by the main Internet real estate portals are used, comparing their market share with that of other national and local players The main conclusion is that this type of company has not opted for professional marketing of housing offered for residential rental in the province, but nevertheless, they have become the leading companies in the real estate development sector in the province by number of homes offered. Taking advantage of the dynamics of the growth of the tourism sector, REITs have been the pioneers of the growth of the real estate sector in Malaga in the last four years, becoming the companies with the greatest market power and the greatest number of homes built in the sector, above those built by national and local housing developers. However, the goal set by the public sector for REITs to offer a professional rental housing stock has not been achieved.