When we talk about the Costa del Sol property market, quite often this conjures up images of luxury property for sale in Marbella, but in fact, it covers many areas and types of real estate, from mansions on the New Golden Mile, Estepona to beachside apartment in Málaga city centre.
However, it is the municipality of Marbella which consistently takes pole position as the most sought-after location for buyers looking for a dream home, an investment property or a second home on the Costa del Sol. This article outlines Marbella’s enduring pulling power and suggests that it will continue throughout 2024.
Sales of property in Spain, Costa del Sol
In 2023, the Spanish property market experienced an overall downward trajectory, seeing property sales fall by 15.3%. More specifically, resales sales fell by 11.2% and new build property sales decreased by 15.3% compared to same period in 2022.
However, within these figures, there are five regions which have performed better than the rest of the peninsula, including the Costa del Sol. The Registrars Association’s statistic show that 35,500 transactions were completed on the Costa del Sol in Q1 to Q3 2023, making the region the fifth most buoyant property market in Spain behind Madrid, Barcelona, Alicante and Valencia.
Similar figures provided by the recent annual ‘Market Study and Evolution’ conference for Leading Property Agents of Spain Association (LPA) suggest that several areas on the Costa del Sol have performed particularly well. Marbella saw the smallest drop in the number of transactions, between 5 and 7%, as compared to the national average drop of 14.9% (figures until September 2023). Marbella’s smaller decrease in the number of transactions can be attributed to a higher proportion of luxury property sales, a market which has not been affected by the cost-of-living crisis or higher interest rates.
Luxury property sales in 2024
In 2024 underlying lack of supply will continue. Unprecedented demand against chronic shortage of new build apartments, houses and villas and supply of resale properties will continue to slow down the transaction rate.
Eric Muller, Director and founder of Andara Villas, a specialist luxury real estate agent and award-winning property developer based in Marbella, explains: “Sustained demand for luxury property in Marbella and the Golden Triangle is inevitable due to the lack of available land and luxury property stock in highly sought-after locations. As high-end real estate agents, we are aware luxury property such as Andara Villa 1 and Andara Villa 2 will be snapped up as soon as they are released on the market, because there isn’t enough high-calibre property available to buy. These villas are also unique in the fact that they sit on a substantial plot of land on Marbella’s Golden Mile as plots of land in such prime locations are extremely limited.”
Consistent demand from foreign buyers
International buyers account for a large percentage of the Costa del Sol property market. In Q3 of 2023, overseas buyers represented 35.5% of the market share, (3rd highest in Spain), of which 10.1% were UK buyers, Germans 7% and French 6.7%. The high demand from foreign buyers is expected to continue throughout 2024, with attention specifically aimed at the areas of Marbella, Estepona and Benahavís known as the ‘Golden Triangle’ and the rest of the western Costa del Sol. In this relatively small region of the Costa del Sol, around 35% of all real estate stock is priced over €1 million, and 3% of these properties are priced at over €10 million.
Property prices in 2024
Spanish property experts, Idealista, report that throughout 2023 (until November), prices rose by 13% which is 6% higher than the national rate, compared to the same period in 2022. Whereas property prices on the western side of the Costa del Sol rose by approximately 15% and are expected to continue to rise above national property prices throughout 2024. Driving factors include the lack of new-build property supply and the purchasing power among buyers will keep Marbella property prices on an upward trajectory.
If you are considering investing in luxury homes in Marbella, get in touch with Andara Villas for specialist high end real estate agent services.