The Costa del Sol leads the way in luxury real estate

22nd June 2024

The real estate boom on the Costa del Sol

The Costa del Sol leads the way in luxury real estate

Amidst the tumultuous global economic landscape, the Costa del Sol emerges as a bastion of prosperity in the luxury real estate market. 

Despite global uncertainties, the region not only competes with Madrid and Barcelona but also stands alongside major European capitals in terms of price and exclusivity.

Catalysts for dynamic growth

The exponential growth of the technology sector serves as a catalyst for the flourishing real estate market, complemented by other factors such as the region's climatic conditions, boasting over 300 days of sunshine per year, and the international connectivity offered by the Málaga airport, which provides direct routes to over 140 cities in 40 countries.

Economic momentum

The real estate market of the Costa del Sol shows no signs of slowing down, surpassing even the most optimistic forecasts in the first five months of the year. 

With expectations of continued growth in the second half of 2024, the province of Málaga competes not only with Madrid and Barcelona but also with major European capitals in terms of price and exclusivity.

Changes in buyer profiles

The clientele of Engel & Völkers reflects changing dynamics, with 65% of foreign buyers and 35% domestic

However, there is a radical shift in the purpose of investment, as 60% of buyers now acquire properties for primary residence, a significant change from previous years.

Estepona: A center of activity

Estepona stands out as one of the most active real estate markets on the Costa del Sol, located in the Golden Triangle alongside Marbella and Benahavís

Urban growth and improved services in recent years have driven the real estate market of Estepona, particularly in Estepona Este, with anticipated price increases of 7 to 10% in 2024.

Provincial dynamics

Beyond Málaga, the provinces of Seville and Cádiz also contribute to the resurgence of Andalusia as the region with the highest number of property transactions in Spain. 

Seville, with its iconic neighborhoods like Los Remedios and the historic center, and Cádiz, with its rising prices in areas like Tarifa and Zahara de los Atunes, showcase the varied real estate landscape of Andalusia.

Conclusions

The enduring allure and prosperous real estate market of the Costa del Sol reinforce its position as a global luxury destination. 

The region continues to attract discerning investors seeking premium properties amidst an incomparable blend of natural beauty and opulent living.


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