The Costa del Sol, a gem along Spain's coastline, has experienced the most substantial rise in property prices compared to other coastal regions in the country. According to the latest data, one coastal resort in Malaga province has registered a remarkable increase in the price per square metre of over 13% in the past year. The overall housing market on the Costa del Sol is thriving, with Malaga leading the surge in property values along Spain’s coast.
Malaga: A Hotspot for Property Investment
As of the end of the first quarter of 2024, the average price per square meter in Malaga stood at 2,289 euros, reflecting a 9.3% increase from the same period the previous year, according to Tinsa, a leading real estate valuation company in Spain. Following Malaga, the Balearic Islands saw a rise of 8.8%, reaching 2,934 euros per square meter. Other notable increases were recorded in Alicante, Valencia, and Santa Cruz de Tenerife, each with around 7% growth. In Andalusia, Cadiz saw a 5.8% increase to 1,625 euros per square meter, while Almeria experienced a 5.6% rise to 1,187 euros per square meter.
Diverse Growth Across Coastal Areas
Within Malaga, property prices showed varied growth across different areas. In Malaga city, prices increased by 10.7% year-on-year, reaching 2,336 euros per square meter. Torrox saw a 9.6% rise to 1,859 euros per square meter, while Nerja experienced a more modest increase of 4.4%, with prices slightly over 2,000 euros per square meter.
Between Torremolinos and Mijas, Benalmádena recorded the highest increase, with property prices rising by 12.4% to 2,465 euros per square meter. Mijas followed with an 8.2% increase, reaching 2,096 euros per square meter. Fuengirola emerged as the most expensive municipality in this area, with prices at 2,470 euros per square meter, reflecting a 9.5% year-on-year increase.
Marbella and Manilva: High-End Property Markets
In the stretch between Marbella and Manilva, Manilva saw the highest price increase at 13.1% over the past 12 months, bringing prices to 1,826 euros per square meter. However, Marbella remains the most expensive location on the Costa del Sol, with prices at 2,811 euros per square meter, having risen by 10% in the past year.
These increases surpass the national average for coastal properties in Spain, where prices rose by 5.7% year-on-year to 1,740 euros per square meter.
Holiday Homes and International Buyers
The Tinsa report highlights the distinction between first and second homes, as well as permanent and holiday homes. Holiday homes, in particular, are priced significantly above average. In Malaga, holiday homes average 3,700 euros per square meter. The highest prices are found between Marbella and Manilva at 4,000 euros per square meter, followed by the area between Torremolinos and Mijas at 3,600 euros per square meter, and La Axarquía at 3,000 euros per square meter.
Coastal municipalities play a crucial role in Malaga’s property market, accounting for 83% of sales and 64% of new building permits in the province. International buyers dominate the market in coastal areas, except in Fuengirola, where many buyers come from Madrid and other Andalusian provinces. Foreign buyers mainly hail from the UK, Germany, Belgium, the Netherlands, Nordic countries, and the Middle East. Tinsa reports that sales of holiday homes to foreigners constitute between 50% and 70% of total transactions.
For those interested in exploring property options in Sotogrande, Marbella, La Zagaleta, or other parts of southern Spain, visit www.luxe-villa.com or email info@luxe-villa.com for more information and assistance with your property purchase.
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