A long-time favourite with holidaymakers, southern Spain has gradually made a name for itself as a top spot for relocation. As a result, Costa del Sol residential tourism now ranks as an international benchmark. Furthermore, its appeal has increased significantly since the pandemic and buying a second home on the Costa del Sol is more popular than ever.
Costa del Sol prime destination for residential tourism
The Malaga coastline has recently confirmed its reputation as a world-class destination for residential tourism. The Costa del Sol combines several elements that add to its appeal as a place to buy a second home. They include security, connectivity, culture and gastronomy, as well as year-round sunshine.
Foreigners are buying more real estate in the area than ever before. In 2022, for example, they purchased 90,000 properties and, in 2023, figures are on track for similar levels. As well as buyers from the UK and Northern Europe, the Costa del Sol also increasingly attracts second-home purchasers from further afield. This year has seen a significant rise in homebuyers from Kuwait and Thailand, for example.
As a result, the Costa del Sol ranks as the top destination for residential tourism in Spain and one of the best in the world.
Profile of Costa del Sol residential tourism
The increase in remote working since the pandemic has changed the profile of second-home buyers on the Costa del Sol. Their average age has dropped to 51, and their budget increased from €630,000 to €740,000. Three-quarters are cash buyers with no need for a mortgage.
Foreigners are also spending longer periods on the Costa del Sol, with the average at four to six months at a time.
Record property prices
The recent surge in foreign buyers has driven property prices upwards. Consequently, Costa del Sol real estate is setting new records.
In August, prices rose by 7.2% in the year, taking resale property prices to their highest ever. The average €3,002 per square metre was also the fourth highest in Spain. The latest quarterly report from Tinsa found that the Costa del Sol real estate values increased by 8.5% in Q3.
Future outlook for residential tourism
Analysts believe the current demand for second homes on the Costa del Sol will continue in the short and medium term. The sustained demand for first homes is also likely to remain in place as the population of Malaga province continues to grow.
However, the area suffers from a lack of supply that levels of new construction are currently unable to keep up with. In addition, there’s a shortage of building land.
As a result, property prices are set to remain on their upward trajectory, and demand for rental properties will stay high.
(Sources: La Opinión de Málaga, Tinsa)