A Strong Market with Continued Growth The Marbella real estate market has remained resilient over the past few years, demonstrating remarkable stability and growth despite economic uncertainties. Since the post-pandemic surge in 2022, demand has continued to remain strong, with 2023 seeing a slight decline but still maintaining a healthy market. The first half of 2024 has shown a 5.4% increase in sales within the Golden Triangle (Marbella, Estepona, and Benahavis), reflecting a 3.16% year-on-year growth.

While global economies have faced challenges, Spain has avoided major downturns, and the Costa del Sol, in particular, has continued to thrive. Tourism remains strong, driving interest in high-end properties. The luxury market, including new builds and premium resales, has continued to attract buyers, particularly from foreign investors looking for second homes and relocation opportunities.

Key Market Trends

• Foreign Buyer Demand Remains High: Over 30% of property purchases in Málaga province were made by foreign buyers in early 2024, with the British leading at 15%, followed by the Dutch and Swedes.
• Resale Properties Dominate: In 2023, 91% of sales in Marbella, Benahavis, and Estepona were resale properties, highlighting their continued appeal. However, new builds are gaining traction, particularly in the luxury segment.
• Increased Interest in Villas: Traditionally, apartments have been the most sought-after property type, but post-COVID trends show a renewed preference for spacious villas with private gardens and pools.
• New Buyer Markets Emerging: Beyond traditional European buyers, demand from Poland, the Czech Republic, and North America has been growing steadily. Ukrainian and Moroccan buyers have also been increasingly active in the market.

Shifts in Buyer Preferences

• High-Quality, Modern Homes: Buyers are prioritizing new and refurbished properties with top-tier amenities, sustainability features, and resort-style facilities.
• Remote Work & Digital Nomads: The ability to work remotely has influenced younger buyers, leading to increased demand for properties with home office spaces and co-working facilities.
• Branded Residences & Gated Communities: High-end developments offering security, exclusivity, and premium lifestyle services are gaining popularity.

Challenges in Supply and Pricing While demand remains strong, the availability of new stock continues to be a limiting factor. New developments have faced delays due to rising construction costs, regulatory hurdles, and limited land availability. This has driven property prices higher, with cost per square meter increasing across the region.

Despite these challenges, there is no imminent risk of a real estate bubble, as demand remains robust and interest rates are expected to decrease further. The luxury segment, in particular, continues to perform well, ensuring that price growth remains steady rather than speculative.

Looking Ahead to 2025 The Marbella real estate market is expected to continue on a positive trajectory in 2025, driven by ongoing investment interest, strong tourism, and Spain’s economic stability. Key factors shaping the market include:

• Lower Interest Rates: Expected reductions in mortgage rates may further stimulate the market.
• Sustainable Urban Development: Increased focus on infrastructure, green spaces, and urban planning improvements in Marbella.
• Growth in the Premium Market: High-end developments and branded residences will continue to attract affluent buyers.
• Regulatory Improvements: Calls for greater professionalization and regulation within the real estate sector could enhance market transparency and buyer confidence.

Despite short-term fluctuations, the long-term outlook for Marbella real estate remains strong and stable, making it a prime investment destination for both national and international buyers. As the region continues to develop and adapt to new trends, it remains one of Europe’s most sought-after locations for luxury property investment.

For more information, a wide selection of properties to rent and assistance with buying property in Sotogrande, Marbella, La Zagaleta, or Southern Spain, please visit www.luxe-villa.com or email info@luxe-villa.com

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