The Real Estate Market in the Costa del Sol

Analysis of the Andalucian property market shows that the rate of increase in house prices is beginning to stabilise. The average value of both new and used residential property saw a growth of 5.3 per cent in the fourth quarter of 2023, according to the report on local markets prepared by the appraisal company Tinsa.

Despite the stability of prices in 2023, in line with the previous year, sales volume at the national level experienced a decrease of 8 per cent. The luxury sector, largely dependent on the foreign market, has been a key player, contributing towards total sales in Spain to an impressive amount of €17,500 million.

In terms of financing, 47 per cent of transactions are made with savings, while 53 per cent opt for mortgages, revealing a diversity in purchase strategies in the current financial market.

It should be noted that, although the luxury market has a big impact on the total sales volume, only 15 per cent of real estate transactions on the Costa del Sol exceeded €1 million in 2023, while 35 per cent were for homes below €500,000.

In terms of reasons for purchase, 56 per cent are first residences and 44 per cent are intended as second homes. The nationalities leading real estate transactions continue to be those of the UK, France, Germany, Belgium, the Netherlands and Sweden. On the regional level, Andalucia is still at the top of the list for buyers from the United Kingdom representing 16 per cent of the total.