Costa del Sol Property Market Update for 2024: Strong Growth Amid Continuing Demand for New Developments in Marbella
The Costa del Sol real estate market continues to experience a steady influx of new-build properties, and new developments in Marbella with an even more impressive year-on-year increase of 26% in new property licenses approved by the end of 2023, according to the latest data from the Malaga province architects’ association.
Market Trends & Pricing
As of April 2024, property prices in the Costa del Sol are continuing their upward trajectory. Despite these rises, the region remains a profitable market for investors. Current market prices still have room for growth before returning to their historic peaks.
According to Tinsa data from late 2023, the average price per square meter in Malaga province, which includes Marbella and the wider Costa del Sol, remains around 20% below its peak 15 years ago, before the 2008 financial crisis. Even with adjustments for inflation, this gap suggests further potential for property value increases, particularly in premium locations.
The Premium Location Advantage
The Costa del Sol remains one of the Mediterranean’s most desirable destinations, and it continues to benefit from global lifestyle shifts. Post-pandemic trends toward remote working, outdoor living, and a better work-life balance have solidified demand in this region. Many buyers are seeking larger properties with ample outdoor space to accommodate more leisure time and a flexible working environment.
Additionally, Malaga’s burgeoning high-tech sector continues to fuel the local economy. With new tech companies establishing bases along the coast, job growth in this sector is providing strong support for real estate demand, particularly among professionals moving to the region for employment opportunities.
New Property Opportunities
We offer a large portfolio of newly developed properties in the Costa del Sol, perfect for those looking to invest in this thriving market. If you’re interested in securing a prime piece of real estate in this beautiful region, contact First Choice Spain.
This weeks’ Euro Weekly has reported a building boom in the luxury living market and more new developments in Marbella on the horizon.
Hotspot for housing
Marbella continues to attract investors from across the world thanks to its renowned credentials for luxury living and vibrant lifestyle offered in the sunshine.
The council is keen to make the most of this interest and has recently approved planning licences worth 3 million euros.
A strong market has been supported by the controlled release of new properties and lack of excessive real estate speculation.
There has been a gentle trickle of of new-build property coming on the market in the Costa del Sol and a healthy year-on-year increase of 22% of new property licences approved, according to official Malaga province architects’ data.
Market data from April 2023 showed prices in this area continued to rise but for investors, this is still a lucrative market as property prices still have a way to go to get back to their all-time peaks.
According to independent real estate industry analysts, Tinsa, the average sq m price in Malaga province, including Marbella and the Costa del Sol, was a full quarter below its selling price of 15 years ago at the height of the boom (data from autumn 2022). This means there is still a way to go to equal this, especially when adjusting for current inflation.
Premium location
As one of the Mediterranean’s premium destinations it is an ideal location for those taking advantage of a change in lifestyle habits globally – which gained momentum during the covid pandemic. The trend has stayed towards more outdoor residential space, work life balance with more leisure time and remote working opportunities being sought.
Along the coast in Malaga there has been a boom in high-tech sector jobs which is supporting stable real estate growth and demand in the area.
We have a large portfolio of new development properties – please contact our expert Helen Richardson if you are looking for a great investment in something new along this coast.
