Costa del Sol property prices set new record

Costa del Sol property prices set new record

Despite higher interest rates, Costa del Sol property prices show no signs of dropping. In August, those for resale homes set a new record with price tags in excess of €3,000 per square metre. Once again, Marbella and Benahavís real estate was the most expensive, with Istán not far behind. 

Third-highest uptick in Spain 

Costa del Sol property prices registered an increase of 7.2% in the year to August, according to figures from Idealista, a leading real estate portal. The uptick ranks as the third highest in the country, with just Tenerife and the Baleares showing bigger jumps. 

In monthly terms, Costa del Sol real estate values rose by 1.3% in August compared to July. The figure took Malaga province to fifth place in the national ranking behind Guipúzcoa, Tenerife, Huesca and Albacete. 

New record for resale prices 

As a result of the 7.2% year-on-year increase, resale property prices on the Costa del Sol reached their highest ever. In August, they stood at €3,002 per square metre, a record figure and the fourth highest in Spain. 

The Balearic Islands have the most expensive homes in the country, with resale properties averaging around €3,987 per square metre. Guipúzcoa in the Basque Country and Madrid stand in second and third places, respectively, although with considerably lower medium values. 

Marbella has the most expensive Costa del Sol property prices

The new average asking price takes the Costa del Sol resale property market to new levels and exceeds those set during the real estate boom in 2007. However, values are not uniform across the province, and several localities have much higher averages. 

As is usually the case, Marbella sits at the top of the table, with an average square metre price of €4,342. Benahavís, another locality in the so-called Golden Triangle, stands in second place at €4,203 while the third component, Estepona, has considerably cheaper property (€3,150 per square metre. 

Four other localities on the Costa del Sol have properties priced at over €3,000. They include Istán, a small but sought-after village north of Marbella. Here, resale homes have an asking price of over €4,000 per square metre. 

Sustained demand behind the price uptick 

Analysts attribute the latest upticks to consolidated demand for properties on the Costa del Sol. Since the pandemic, the share of foreign buyers has risen exponentially and now represents over a third of the market. 

In addition, there’s a shortage of available properties, aggravated by the recent slowdown in new construction. As a result, Costa del Sol property prices are expected to continue to rise. 

(Source: Idealista)