Facts about the Spanish property market

The Spanish property market Credit: Shutterstock/2165265711

A 2024 report from the company ‘Tinsa’ found that prices for Costa del Sol real estate went up 7.6 per cent during 2023 to an average of €1,977 per square metre.

In quarterly terms, the increase was 1.2 per cent. Tinsa also found that the property prices in the area had made up the most ground in Spain after Madrid and Barcelona.

The valuation company Gesvalt have reported that Marbella is the most expensive place in the Costa del Sol to buy property, with an average valuation price of €3,343 per square metre. It ranks as the second most expensive city in Spain with over 50,000 inhabitants.

Many areas in the Costa del Sol are also starting to soar in value. A study by the Gesvalt has found that properties in the areas of Benalmadena, Estepona, Fuengirola, Mijas and Torremolinos currently have an average price that exceeded €2,000 per square metre.

International buyers have always played a significant role in the Costa del Sol real estate market, and 2023 appears to have been no exception. OMAU reports that foreigners make up 34 per cent of the market, an unusually high share that indicates the interest in Costa del Sol real estate from abroad.

According to the latest data from the Registrars Association, over 35,500 properties changed hands on the Costa del Sol during the year of 2023. The figure is the fifth highest in the country, behind Madrid, Barcelona, Alicante and Valencia, and indicates a busy market on the sunshine coast. 

The Costa del Sol generally has the largest proportion of high-end property within the country of Spain. Just over 35 per cent of all the real estate in the area is priced at over €1 million. The famous ‘Golden Triangle’ of Benahavis, Estepona and Marbella has the biggest concentration of luxury homes, where 3 per cent of them cost over €10 million. 

A key factor in the rise of property sales in Marbella and the Costa Del Sol is the golf property market. The are is well known for its world-class golf courses and resorts, and has therefore become a magnet for golf enthusiasts and lifestyle investors. Properties in golf developments offer a beautiful blend of leisure, luxury, and sports opportunities, creating a high demand for them. 

According to online property platform ‘Idealista’, Marbella and Estepona have seen the highest price spikes over the last two years. Bankinter’s analysis and markets department predicts that residential house prices in Spain will rise by 7 per cent in 2024 and by another 4 per cent the following year.

One of the main drivers in the Spanish property market is the country’s robust economy. The country has seen steady economic growth in recent years, with a GDP growth rate consistently outperforming the Eurozone average. This economic stability has instilled confidence in both domestic and international property buyers that has led to an increased real estate demand. 

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Written by

Jennifer Popplewell

Jennifer is a proud northerner from Sheffield, England, who is currently living in Spain. She loves swimming in rivers, talking to the stars and eating luxurious chocolate.