The southern Spanish coastline has long been a hot spot for high-end homes, and as a result, Costa del Sol luxury real estate now leads the Spanish market. Luxe properties now account for over a third of the total, ahead of the Balearics, Madrid and Barcelona. Analysts expect the trend to continue in 2024.
Costa del Sol luxury real estate equals 34%
A recent forum analysing the luxury property sector in Marbella and other resorts on the Costa del Sol revealed that high-end homes now make up 34% of the total. This figure takes the Costa del Sol to the top of the Spanish ranking.
The Balearics, another hot spot for luxury property in Spain, sits close behind with 33%, while Madrid and Barcelona lie some distance away. The share of high-end homes in the two largest cities is 10% and 6%, respectively.
The appeal of the Costa del Sol
The forum confirmed the Costa del Sol’s attraction, particularly at the top echelons of the market. The climate and gastronomy are two of the main draws, along with the legal securities of investment in Spain. Membership of the EU provides further guarantees for buyers.
In addition, the Costa del Sol has solid appeal to affluent buyers, a growing niche market since the pandemic. “There’s been a change in buyer profile over the last few years,” said Juan Manuel Rosillo, President of the Malaga Developers Association (ACP). “Buyers now want properties offering greater security and privacy.”
Growth of branded residences
The ever-increasing demand for prime homes on the Costa del Sol has led to steady growth in the number of branded residences on the Costa del Sol. This type of real estate offers high-end homes with the addition of hosted services and design by the associated brand.
A recent report by Colliers found that the Costa del Sol now ranks as the preferred location for branded residences in Spain, with Marbella at the forefront. Some 900 units will join the market by 2027, headed by brands such as Fendi and Karl Lagerfeld.
Lack of supply
However, the Costa del Sol luxury real estate market faces one considerable obstacle: a shortage of supply. As a result, prices continue to rise, making property in this part of Spain among the most expensive in the country. For example, in Marbella, new-build property costs at least €7,000 per square metre.
“The lack of building land means developers need to look for other ways of expanding,” said Juan Antonio Mora, CEO of Jamsa. “They must regenerate, reinvent themselves and start developing in other areas so that they become popular.” As an example of land shortage, he cited Puente Romano in Marbella, where “there’s no room for one more brick”.
(Source: El Inmobiliario)