The real estate market on the Costa del Sol is booming, surpassing the most optimistic forecasts and placing Malaga at the level of the main European capitals in terms of price and exclusivity.
Factors such as the growth of the technology sector, the favourable climate and the international connections of Malaga airport contribute to this dynamism.
The Engel & Völkers report highlights a significant increase in demand for luxury properties, especially in areas such as Estepona and Marbella, with a predominantly foreign buyer profile purchasing homes as their primary residence.
The Costa del Sol property market continues to boom, exceeding even the most optimistic forecasts in the first five months of the year. This dynamism places the province of Malaga in direct competition with Madrid, Barcelona and the main European capitals in terms of both price and exclusivity. This growth is expected to continue in the second half of 2024.
One of the main drivers of this boom is the technology sector, together with the favourable climatic conditions in the region, which enjoys more than 300 days of sunshine a year. In addition, Malaga airport’s excellent international connections, with direct routes to more than 140 cities in 40 countries, also contribute to the province’s attractiveness as a residential destination.
According to the Real Estate Market Report 2023-24 prepared by Engel & Völkers, the average price of properties in the most coveted areas of Malaga, such as El Candado or Pinares, reaches 912,000 euros. In areas such as Calle Pacífico, major new residential developments are being built, while the historic centre and Pedregalejo have seen a 12.55% increase in house prices in the last year, with the average cost now around 651,765 euros.
The buyer profile has shown a consistent trend: 65% are foreigners compared to 35% nationals. However, there has been a significant change in the purpose of the investment, with 60% of buyers acquiring the property as their primary residence, a figure significantly higher than in previous years.
Estepona: One of the Most Active Municipalities
Improved services and urban growth in Estepona have maintained its property market as one of the most active on the Costa del Sol. In areas such as Estepona East, prices have surpassed 4,200 euros per square metre, with Engel & Völkers projecting a price increase of between 7-10% by 2024. Estepona forms part of the ‘golden triangle’ along with Marbella and Benahavís, known for its excellent investment opportunities.
The increase in US buyers has been significant, with more US sales in 2023 than in the last two decades. There has also been an increase in buyers from Russia’s neighbouring countries, as well as from Switzerland, Poland and the Czech Republic.
In the ‘golden triangle’, luxury homes range in price from €1 million to €3.5 million, with mansions going for upwards of €20 million. The average age of families moving permanently to Marbella has dropped from 55 to a range between 35 and 50.
The Engel & Völkers report reflects that the Costa del Sol will continue to capture the attention of international investors, buyers and residents, consolidating its position as a leader in the Spanish and European real estate market. This scenario augurs a promising future for the Andalusian real estate sector, reaffirming its position as a leader in transactions and quality of life in Spain.
Source: El Economista. Marta Ramos el 22 de mayo, 2024.