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Costa del Sol real estate market; 2023 summary, 2024 outlook

The Costa del Sol property market, led by Marbella, has seen unprecedented growth and activity over the past year. Property prices here have risen to some of the highest levels in Spain. According to the latest figures from the Association of Registrars, some 35,500 properties were sold on the Costa del Sol in the first nine months of 2023, ranking the area fifth in the country, just behind Madrid, Barcelona, Alicante and Valencia.

According to the Idealista portal, property prices on the Costa del Sol have risen by 13 % year-on-year, 6 percentage points more than the national average. The Registrars Association also reports that prices in the third quarter of 2023 were 5.5 % higher compared to the same period in 2022. Brokers in Marbella estimate that in the sought-after western Costa del Sol, prices have risen by as much as 15 %. Forecasts for next year suggest that prices in this area will continue to rise significantly faster than in the rest of Spain, although the rate of increase could be more moderate compared to 2023. This is due, among other reasons, to the limited supply of new builds and the strong purchasing power of investors, which continues to push prices upwards.

The Costa del Sol is attracting increasing interest from international buyers, who accounted for 35.3 % of all transactions in the third quarter - the third highest share in Spain. Britons remain the largest group (10.1 %), followed by Germans (7 %) and the French (6.7 %). Experts expect demand from abroad to continue in 2024, with Marbella and the western Costa del Sol remaining among the most desirable locations.

The luxury property segment has the strongest representation in the Costa del Sol in Spain, with 35 % of all properties here exceeding a price of €1 million. The largest concentration of luxury homes can be found in the so-called Golden Triangle, which consists of the areas of Benahavis, Estepona and Marbella. Here, 3 % of properties are those with a price exceeding 10 million euros. Developers have already announced new investments in the order of millions of euros, signalling that this trend will continue in 2024.

(Sources: Association of Registrars, Idealista, Malaga Hoy)