Forget any doubts you may have about whether you should invest in Costa del Sol luxury real estate, statistic published by Spanish property portal Idealista, show that in Q1 of 2024, one out of every 10 properties in Málaga City and property for sale on the Costa del Sol sold in one month or less.
If we look even closer, 14 percent of all property for sale on the Costa del Sol and the wider Málaga Province, sold in less than 7 days. The number of ‘express sales’ currently taking place in Málaga are third only to Granada and Tarragona, the only two regions to be experiencing a higher percentage of quick sales.
To put these express sales in context, the Spanish property market is seeing an average of 13 percent of 7 days sales, 21 percent of properties selling in one month or less, and 31 percent are taking between three to 12 months to sell. In Malaga Province, only 5 percent of the Costa del Sol homes for sale remain unsold for between three to 12 months.
Regional director, Gregorio Abril, for Gesvalt (Experts in real estate valuations and markets), suggested the market has experience a period of reinvigoration in anticipation of possible interest rate cuts. This has increased both the demand and the price of property on the Costa del Sol, leaving developers trying to meet the demand.
Gesvalt’s figures (published in the Sur in English April 2024) show that in Q1 2024, the average price per square metre for property sales in Málaga Province increased by 1.2 percent on the same period in 2023, which equates to 2,412€. Rental prices per square metre saw a substantial 13.5% increase to 14.32€, in the same period, this represented a 3.5% jump in the cost of rental property from Q4 2023 to Q1 2024.
Higher purchase prices push up rental prices
The consistent upward trajectory of the cost of renting and purchasing real estate on the Costa del Sol, has made this sun-drenched coastline one of the most buoyant property markets in the world. Whether looking for luxury villas to buy in Marbella as a home or as an investment property, buyers are finding the scarcity of housing stock is pushing up the price of purchasing real estate on the Costa del Sol and for the speed at which properties are being snapped up.
The rental market is also feeling the effects, as more people consider renting instead of buying.
The rental prices per square metre published by Gesvalt for Q1 2024, show that Marbella real estate has the highest price on the Costa del Sol at 18.80€ per square metre. This represents a 12 percent increase upon the same period in 2023. Yet Marbella is not alone in experiencing such hefty increases in rental rates, Torremolinos located just a few minutes’ drive from Málaga City, also saw a year-on-year increase of 12 percent, brining the price per square metre to 14.4€.
This beautiful stretch of Mediterranean coastline offers something for everyone, from luxury villas in Mijas Costa to apartments on the Golden Mile, Marbella’s finest villas or frontline golf properties. So, it appears that there is no end in sight to the enduring appeal of southern Spain’s sunshine coast.
