The Costa del Sol luxury property market has caught the eye of yet another high-end real estate agency. Berkshire Hathaway Home Services, the property arm of Warren Buffet, has just opened another office in the area.
The latest branch in Malaga city joins its local sister in Marbella, already an established presence in the Costa del Sol property sector. In addition, Berkshire Hathaway Home Services plans to extend its network of offices throughout Spain, with branches in the Canary Islands, the Balearics and the Costa Blanca.
Costa del Sol luxury property market growing
Warren Buffet’s property company caters for high-end clients and, as a result, the Costa del Sol is a natural choice for its offices. “The luxury real estate sector in Spain is growing and has a huge potential,” said Christy Budnick, CEO of Berkshire Hathaway Home Services.
The company has been in Spain since 2019 and set up its first office on the Costa del Sol in Marbella in 2020. Since then, “the Costa del Sol, particularly its capital and Marbella, have been an absolute priority,” according to Luca Tamburello, Director in Spain.
Appeal to the American market
The Costa del Sol luxury property market has been a perennial favourite among foreigners for decades but, in the last few years, its appeal among North Americans has grown exponentially.
For example, US buyers of Spanish real estate surged by 76% in 2022, and there’s no sign of a drop this year. For Tamburello, the Costa del Sol represents a safe place with an excellent climate for North American buyers.
He also points out that price is a major draw. “The real estate market in Andalusian and Malaga province are tremendously cheap for Americans,” he said. Taxes and community of owners’ fees are particularly good value compared to the US. However, he also underlines the appeal of the local gastronomy, which US buyers “are passionate about”.
Changes in buyer preferences
Budnick believes the changes in lifestyle since the pandemic lie behind the surge in interest in Costa del Sol luxury properties among North American buyers. “The home has a completely new meaning,” she said. “Buyers now wants to purchase somewhere where they feel comfortable, with outdoor spaces and leisure areas.”
Location is, as ever, essential, but perhaps even more so among high-end buyers. “They want to be somewhere with beautiful surroundings like Marbella,” said Budnick, “and close to their favourite activities.”
Lack of supply
However, the surge in demand since the pandemic has led to unprecedented sales volumes throughout Spain, particularly on the Costa del Sol. As a result, supply is low, which constitutes the main problem within the market, according to Tamburello.
“There’s not enough supply for so much demand and the first consequence is rising prices,” he said. He points out that while property prices are falling in almost all of Europe and the US, on the Costa del Sol, they’re going up.
Budnick believes this trend is here to stay, particularly at the high end of the market. She believes that despite rising interest rates, prices for the best properties on the Costa del Sol will continue to increase, particularly for those in the most exclusive locations.
(Source: SER)
