The luxury real estate market on the Costa del Sol is booming, driven by a significant increase in transactions by US buyers. Engel & Völkers reports a steady growth in sales during 2023 and early 2024, with operations highlighted in exclusive areas such as Cascada de Camoján and Sierra Blanca. The average age of new buyers reflects a generational shift.
In addition, the market has also seen an increase in buyers from neighbouring countries and other nationalities, consolidating Marbella as a highly sought-after luxury destination.
The luxury real estate market on the Costa del Sol continues to show remarkable growth, with a significant increase in transactions by US buyers. According to the latest Engel & Völkers report, transactions in Marbella and the surrounding area not only grew in 2023, but continue to show strong dynamics in 2024.
According to the real estate company, in December 2023 and January 2024, sales of two properties valued at more than 12 million euros each, located in the exclusive areas of Cascada de Camoján and Sierra Blanca, were closed. In addition, sales of other villas in La Zagaleta and Cascada de Camoján are expected to be finalised in February. This growth has been supported by an emerging trend: the influx of US buyers, who have closed more deals in the last year than in the previous two decades.
The shortage of land in the region remains a significant challenge, with 23% of sales going to new construction and 77% to second-hand housing. The construction of new villas, as well as demolitions for reconstruction and complete renovations, are common practice in the most exclusive areas. Engel & Völkers recorded an annual turnover of more than EUR 1 billion worldwide in 2023. Although fee and commission income declined slightly, the results are still significantly above the market average.
In the Marbella branch, sales last year experienced a growth of 4.77%, accumulating an increase of 12.77% since 2021, with a total of 370 transactions at an average price of more than €1.6 million. The presence of buyers from the United States has become a new upward force, highlighting the popularity of the Costa del Sol among international investors.
There has also been an increase in transactions with buyers from Russia's neighbouring countries, as well as from Switzerland, Poland and the Czech Republic. This increase in demand is accompanied by a generational shift in luxury buyers, with the average age of families moving to Marbella now between 35 and 50, in contrast to 55+ before the pandemic.
According to Smadar Kahana, owner of Engel & Völkers Marbella, ‘Marbella is experiencing unprecedented popularity, with the presence of celebrities, influencers and a younger clientele. We anticipate continued demand, especially for modern properties. With these trends, the luxury real estate market on the Costa del Sol appears to be on an upward trajectory that will continue to attract high net worth buyers from all over the world.
Fuente: El Español. Sebastián Sánchez el 05 febrero, 2024.