Bloomberg interviews Mojo: Why buy a property on the Costa del Sol?
Costa del Sol is one of Europe’s favourite relocation spots. There are almost 300,000 foreigners living on the sunny coast, which constitutes about 18% of the population. 2021 ended up being the busiest year for property sales on the Costa del Sol since the crisis, and the prices have increased steadily.
What is the secret that attracts so many people to the Costa del Sol? Why is Costa del Sol such a hot real estate market? And what happened with the market during Covid-19?
Find out this and more in one of the latest videos from Bloomberg, a global news leader and New York-based media conglomerate that provides financial news, information, research, and financial data.
We encourage you to watch the full video above to get a better understanding of the real estate market on the Costa del Sol.
Bloomberg recently came to Costa del Sol to go into depth with the real estate market by interviewing some competent and leading figures in the field. Among these were Javier Lopez, owner of Finca Cortesin, Matias Villarroel, Managing Director of Round Hill Capital, José Antonio, the Mayor of Benahavís, Sascha Falk, the developer of Ocean View Marbella, Guillermo Rodrídguez, president of Reserva del Higuerón Prive, Francisco de La Torre, Málaga’s Mayor, and of course, your favourite duo, Mr Mo and Mr Jo from Mojo Estates.
The story of Mr Mo and Mr Jo
Per Mønsted and Jacob Johansen met each other after Per moved to Costa del Sol in 2014 after selling his businesses in Denmark with plans to retire. However, the encounter with Jacob, who was already working and investing in the real estate market on the Costa del Sol, changed those plans drastically (along with a loving push from Per’s wife).
The two gentlemen decided to do something big together; they would go all in! This decision led to the full-scale, 360-degree real estate business we know today as House of Mojo. The concept covers all aspects of buying, renting, owning, and selling within the branches Mojo Estates, Mojo Capitals, Mojo Invest, Mojo Sharing, and Mojo Rentals, along with in-house legal services and property management services.
You can also read more about Mr Mo and Mr Jo in the Marbella magazine, Society, which has
picked up the extensive story Bloomberg made about the housing market on the Costa del Sol and the two innovative businessmen who founded Mojo Estates.
As Society points out, Mojo stands out from the competitors in the real estate market on Costa del Sol because of the unique marketing approach, which can also be characterised as going “all in”. Per and Jacob, along with the rest of the Mojo team, are dedicated to developing creative content, particularly videos, which are entertaining, transparent, informative and sometimes a little provocative. Even Jacob was surprised by how crazy some of their initial marketing videos were when he looked back.
Nevertheless, Mojo shows people how unique and fantastic the lifestyle is on Costa del Sol, which spikes the interest among potential buyers. This marketing approach proved decisive during the pandemic when it was impossible to travel to Spain.
Through various online channels, Mojo provides area guides, property insights, guidance on what to do, and where to go on the Costa del Sol to live the dream life with “good mojo”. When people at some point decide to stop dreaming and take the risk, Mojo will be by their side to find the right home for them – and as Per says, “we are never going to put you in a place we wouldn’t buy ourselves”.
Why are foreigners buying properties on the Costa del Sol?
In 2021, Costa del Sol experienced one of the strongest population surges in Spain. But why is Costa del Sol attracting so many people?
This is a good question for those who have not yet been to Costa del Sol. However, for anyone who has been to Costa del Sol, whether it was for a holiday or with the intention of buying a property, the reasons are obvious.
- The incredible weather
- The many golf courses
- The beautiful landscape
- The vibrant people
- The positive vibes
- The local Andalusian culture mixed with the international culture
- The many different areas within the region
- The possibility of extraordinary luxury
- The many schools for different nationalities
- The possibility of both private and public hospitals
- The re-developing of the Málaga region
- The various retail opportunities
- The wide range of cultural events and museums
How did the Covid-19 pandemic affect Costa del Sol?
As the experts say in the video from Bloomberg, it is not about selling the real estate; it is about the feeling and the lifestyle you buy into when purchasing a home on the Costa del Sol. And that may be one of the explanations as to why the international interest in the Costa del Sol real estate market has only increased since the Covid-19 pandemic hit the world in 2020.
First, during the pandemic, everything was paralysed for 3-4 months as everyone was in shock. Afterwards, however, the real estate market got so hot that foreigners started to buy properties remotely without even seeing the homes. Matias Villarroel explains that he had never expected to be able to sell units via the phone with properties in the middle euro range.
According to the Mayor of Málaga, Francisco de La Torre, Málaga was the city in Spain with the greatest growth in hotel occupancy before Covid-19. If we look at the numbers from March 2022, Málaga had yet again one of the highest occupancy rates in Spain, with no less than 74% hotel occupancy.
Furthermore, Costa del Sol is now attracting more foreign home buyers, who are not just looking for a second residence, but a first residence in the region of Málaga. This new trend is possible thanks to the new ways of remote working facilitated by the pandemic and booming technology.
Costa del Sol property market
“Location, location, location”. You have probably heard this saying before. A real estate saying that is also valid on Costa del Sol, where the most popular housing areas are Marbella, Estepona, and Benahavís. If you are searching for high-end luxury, Benahavís has the edge.
In Benahavís, you will find La Zagaleta, the most exclusive urbanisation in all of Europe. The most extravagant mansion in Spain went on the market in 2021 for no less than 32 million euro, and this mansion was located in the famous, yet very private, area of La Zagaleta. As the mayor of Benahavís José Antonio explains in the Bloomberg video, Benahavís’ economy is largely fueled by the real estate sector. Residential tourism constitutes about 8% of Benahavís’ economy, and 72% of the city’s residents are foreigners.
Foreign investors are looking at Costa del Sol for property investment because the prices (and inflation) have increased so much in their home countries that many can only achieve a Return On Investment (ROI) of 3-4%. This is one of the reasons that Mojo has created their Real Estate Investment Trust, Mojo Capitals, which is the first of its kind on Costa del Sol. It is an innovative private equity fund that strives to achieve an ROI of 10% after paying the Spanish tax.
The property market increased remarkably in 2021, and the growing prices have continued into 2022. For example, one out of every fifth home was sold within a week in February 2022 – that was how high the property demand was!
Costa del Sol also offers a niche market for exclusive luxury properties, a demand that has also been booming and breaking records. If you dream of a luxury home on the coast, but the properties you want are over your budget, do not hesitate to contact Mojo for help. We have developed a sharing concept that enables people to get a fantastic property for only one-eight of the price by sharing it with seven other owners (eight in total). With Mojo Sharing, everyone can buy a home on the Costa del Sol!