As the year draws to a close, the Costa del Sol has begun to take stock of what has already become one of its main industries: the real estate market, especially the premium segment. A sector that has exceeded initial expectations in 2024, registering a 20% growth and with a total volume of investment in ongoing projects that exceeds 3.2 billion euros.
With these figures and with a portfolio of clients and investors of more than 90 different nationalities, the Costa del Sol has become one of the main refuge destinations in Europe, where the market has experienced a certain slowdown this year. In Malaga, whichaccounts for 30% of premium property salesthe sector has grown even above the national average, where the increase is around 7%.
According to a report prepared by Pure Living Propertiesa reference agency in high-quality properties, this growth is driven by the arrival of new buyer profiles and an increase in international demand with a strong presence of emerging markets such as the US.
“The high-quality real estate market is in the best moment of the last decades. Marbella, Estepona and Benahavís have proven to be international destinations that attract buyers and investors international consolidating itself as a reference in the high-end sector. With just a few weeks left before the end of the year, we can affirm that 2024 will be marked as a historic year for the sector,” he comments. Javier NietoCEO of Pure Living Properties.
Price increases in key areas
The report, which takes stock of 2024 and outlines market forecasts and trends for 2025, highlights unprecedented growth in both sales and prices. In Marbella, the average price per square meter reached €4,961/m²while in Estepona and Benahavís the prices were at €3,582/m² and €4,644/m²respectively. Despite this increase in prices, demand continues to exceed the available supply, especially in the most exclusive areas such as the Golden Mile, La Zagaleta and Sierra Blanca and especially in new construction.
In these areas, prices per square meter have reached historic highs, with properties exceeding €30,000/m² in Roman Bridge and Sierra Blanca. This notable dynamism has also begun to spread to the west with emerging areas such as Finca Cortesin (Casares), where the average price per square meter already exceeds €9,300/m².
“The real estate market on the Costa del Sol is expanding in volume, but it is also growing in quality. International buyers are demanding properties that combine luxury, sustainability and advanced technology and Marbella has a wide range of properties that meet these demands,” adds the CEO of Pure Living Properties.
The highest prices in the country
Specifically, Roman Bridgeconsidered one of the most expensive residential areas in the country, has registered an increase in 20% in sales during the first half of 2024. As Nieto explained, this notable increase is mainly due to the fact that 2023 was relatively slow in terms of sales in Puente Romano. “The prices were very high and the owners did not want to negotiate, this year they are more predisposed to that negotiation and that is why sales have been very active again“he comments.
Pure Living Properties, a reference agency in Puente Romano and the Golden Mile, has a catalog of more than 30 properties for sale in the different areas of this resort that houses duplex penthouses with frontal sea views, villas or apartments.
New buyer profiles
In 2024, the market has witnessed a significant increase in acquisitions by young technology entrepreneurs and the cryptocurrency sector, which represent almost 10% of buyers; elite athletes, who not only invest in private properties, but also in important projects (Rafa Nadal will invest more than 200 million in residential properties in Marbella and Estepona) and digital nomads who arrive attracted by the tax benefits for this profile.
In addition, during 2024 there has been a notable increase in demand from buyers in emerging markets such as USA (+34%) and Middle Eastsupported by direct air connections between Malaga and key destinations such as New York and Dubai. In total, more than 90% of transactions in the luxury market of the Costa del Sol have been carried out by international investors.
Another of the outstanding aspects this year is the boom in the development of branded residencesprojects associated with international luxury brands that are redefining the concept of exclusivity and that have managed to position Marbella as an international benchmark at the level of cities such as Miami or Dubai.
EPIC Marbella by Fendi Housea residential complex that has raised the standards of design and customization on the Golden Mile; Design Hills by Dolce&Gabbanawith 92 unique residences that combine Italian design and advanced technology or Tierra Viva by Lamborghini in Benahavís, a project of 53 villas that merges automotive innovation and avant-garde architecture, are some of the most notable projects being developed in the golden triangle.
Growth forecasts for 2025
The Pure Living Properties report anticipates a promising 2025, with estimated growth of 5% to 8% in prices in the most consolidated areas. Among the trends that will mark next year are: the expansion of the luxury market towards the westernmost area of the Costa del Sol, bordering Sotogrande with important residential projects on the beachfront.
A notable growth in demand for p is also expected for next year.Sustainable properties equipped with high technology and diversification of international demand, traditional buyers from Europe will be joined by more investors from Asia, the Middle East and America, attracted by the quality of life, the security of the destination and the connectivity of the Costa del Sol with the rest of the world.
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