With 34% of the luxury property market in Spain, the Costa del Sol stands out as the leader in this type of real estate. A recent report finds that the Costa del Sol has the most high-end homes, slightly ahead of its nearest competitor, the Balearic Islands.
Most luxe homes in Spain
A report from the real estate consultancy firm Catella reveals that Costa del Sol leads the luxury property market in Spain. This part of the southern coast has 2,500 properties worth over €3 million, the highest number in the country.
The figure translates to 34% of the total. The Balearic Islands come a close second with 33% of the market share, with Madrid and Barcelona in third and fourth places, respectively. Their percentage stands at 10 and 6%.
Although high-end homes make up just 5% of the Spanish property market, they constitute one of the fastest-growing sectors. The province of Malaga stands out as a luxury destination, mostly because of its “location and strategic connectivity”, says the report.
Spain ranks fourth in the world for luxury property after the US, UK and Australia. As a result, Spain is the leading destination in Europe for multi-million real estate and at the head of the competition.
Foreigners make up almost 90% of purchases within the luxury property market in Spain. British buyers are the largest percentage, followed by Germans, French, Chinese and buyers from Latin America. In recent years, there has been a marked increase in the number of North Americans purchasing high-end homes in Spain.
Buyers of high-end property choose Spain because they view it as a safe investment and an ideal place for a second home. Their preferred location is often the coast.
Most popular luxury spots on the Costa del Sol
The report finds that Marbella and Benahavis dominate the rankings for the most sought-after places to buy luxury property on the Costa del Sol. Between them, they account for 6% of all high-end purchases, with the Golden Mile and La Zagaleta taking the top spots.
Other popular places to buy on the Costa del Sol include Lomas de Marbella, Puente Romano, Puerto Banús and Los Monteros in Marbella. El Madroñal in Benahavis also ranks as a firm favourite at the top end of the market.
Holiday home prices see highest rise
According to the latest Tinsa annual report on holiday homes in Spain, this type of property saw a higher price leap. Second home values rose by 6.3% in the year to Q1 2023, with an average price of €2,550 per square metre. This figure is 35% more than the average price for all residential property.
Biggest hike in Spain
The Costa del Sol saw the highest price rise in the country, with a 7% increase in holiday home values between Q1 2022 and Q1 this year. The neighbouring Granada coast came a close second, with a 6.8% rise.
As a graph above shows, sales of coastal homes in Spain skyrocketed last year. Demand for Costa del Sol property was particularly strong. According to official statistics from the MITMA Ministry, transactions on the Mediterranean coast rose by 11.4% in 2022. However, those on the Costa del Sol increased by over 20%.
(Sources: EFE, Tinsa)