Why Costa del Sol is The New Europe Hotspot | Property Market: 2022-2023 Update

Updated on: November 1, 2023

CONTENTS

The property market in Costa del Sol, especially in the areas of MarbellaEstepona and Benahavís – also known as the “Golden Triangle” of Costa del Sol is changing in some interesting ways. Let’s dive into the key insights and trends.

Aerial view of a picturesque coastal town with clear turquoise waters, a long wooden pier extending into the sea, and a beach lined with sun loungers and umbrellas. Nearby, there are lush green trees, residential buildings, and a backdrop of mountains.

Market Strengthens After Covid-19

You might be surprised to learn that the pandemic has actually made the local property market stronger. More people are discovering Costa del Sol and are interested in buying a second home or making an investment here. The great year-round weather and the rise of remote work are big reasons why. 
According to source SavillsMálaga 
is the top place in Europe for digital nomads and ranks second in the world. 

A bar chart titled "Top world destinations for executive nomads." The chart lists various global destinations ranked by factors important to digital nomads. The factors include Internet speed, Quality of life, Climate, Air connectivity, and Prime residential rents. Each destination has horizontal bars corresponding to each factor's rating, with numbers indicating the exact value. Some highlighted destinations and their ratings include: Dubai with high Internet speed at 34.18 and prime residential rents at 11. Málaga featuring a notable climate score of 10.38 and a Quality of life rating of 8.06. Miami boasting an 11 in Quality of life and an 8.35 in Air connectivity. Lisbon with a balanced score across factors like 9.46 in Climate and 5.58 in Air connectivity. Barcelona and Palma de Mallorca also showing competitive scores in various categories. The chart continues to list other destinations such as Barbados, Abu Dhabi, Algarve, and more, each with their respective ratings in the mentioned factors.

Impressive Sales Growth

From 2021 to 2022, property sales in the Golden Triangle on Costa del Sol surged from 8,624 to an impressive 10,288This swift rise over just one year underscores the growing appeal of this region to potential buyers and investors. To provide some perspective, back in 2019, before the onset of COVID-19 the number of properties sold was 6,626, indicating a considerable increase in demand.

A visual representation titled "MARKET REPORT" focusing on property sales in Marbella, Estepona, and Benahavís. The top half of the image displays an aerial view of a coastal region, showcasing a beach with sunbeds, clear blue waters, and a long pier stretching out into the sea. Below the landscape view is a line chart plotting property sales from 2007 to 2022. The vertical axis ranges from 0 to 12,500, indicating the number of sales. The line graph demonstrates a fluctuating trend in property sales with a significant increase around the year 2021. The years are plotted along the horizontal axis, showing data points for each year. The overall impression is a growth in property sales in the most recent years depicted.

Nationalities of Buyers

British buyers have traditionally led the market, but that’s beginning to change. There’s a rising interest from many different countries and newly from Eastern Europe who are looking for second homes, investment opportunities or even looking to move here due to the quality of life. Some of these countries include:

 

  • United Kingdom
  • Netherlands
  • Sweden
  • Belgium
  • France
  • Germany
  • Poland
  • Ukraine
  • Czech Republic
A collage of various national flags arranged in a grid format. The flags represented include the Netherlands (horizontal tricolor of red, white, and blue), the United Kingdom (Union Jack with red, white, and blue cross patterns), Belgium (vertical tricolor of black, yellow, and red), Germany (horizontal tricolor of black, red, and gold), France (vertical tricolor of blue, white, and red), Sweden (blue with a yellow cross), Ukraine (horizontal bicolor of blue and yellow), and the Czech Republic (two horizontal bands of white and red with a blue triangle extending from the hoist side). The overall impression conveys a sense of international diversity and unity.

Rentals in high demand nearly all year

The rental market is thriving, much like Costa del Sol’s overall popularity. Summer is the busiest season, with vacation spending in the area up by 30% in 2023. Beyond the summer months, the region attracts a different crowd. Known as “Costa del Golf,” the area is a haven for golf enthusiasts all year round, but especially in months like October and November. Costa del Sol boasts 74 golf courses, some of which rank among Europe’s finest – such as Valderrama Golf and Finca Cortesín Golf. Notably, Finca Cortesín Golf also hosted the Solheim Cup 2023 this year and is considered #1 or #2 in Europe, depending who you ask.

Accessibility of costa del sol

Málaga Airport now offers 151 direct flights. New this year are direct flights from New York, available three times a week from May 31 to September 27. This is likely going to repeat due to the demand from United States.

Increase in demand

According to Idealista, demand for properties in Marbella surged last year, leading to a 6% reduction in available listings. This strong demand has carried over into 2023, most notably in prime locations where the surge in interest has been even more remarkable. Newly, luxury branded new developments (off-plan projects) are emerging, some of these are: 

 

These are the first projects of their kind in Europe and some in the whole world.

Marbella: luxurious yet affordable

Marbella’s allure as a luxury destination is ever-increasing. What sets it apart is an unmatched blend of affordability and high-end living, a combination rare in other prestigious locations offering the same quality amenities. This unique value proposition makes Marbella and its surrounding areas an irresistible choice for a diverse range of buyers.

The challenge of long term rentals

Short-term holiday rentals are on the rise, but long-term rentals are getting harder to find due to the interest in second homes. Many foreign owners prefer to use their properties themselves or offer them for short-term rent to maximize profits. As a result, local working residents in Marbella are finding it tough to afford long-term rental options. This provides even more investment opportunities for buyers that would like to rent out their property long-term.

Don’t miss your chance to invest in one of Europe’s most up-and-coming regions – Costa del Sol. New developments typically see a 20-30% increase in value once construction is completed, usually within two years, making it an excellent investment even if you plan to sell immediately upon completion. Whether you’re interested in properties near golf coursesbeachfront properties, or luxury estates, there’s something here for everyone. The area offers an unmatched lifestyle, coupled with strong investment potential. Want to know more? Contact us! We’re more than just a real estate agency; we’re your partner for everything real estate on Costa del Sol. From legal support to after-sale care, and from selecting the perfect location based on your lifestyle, we’ve got you covered. Reach out to us today!

Author: Lucie Sprenarova

Lucie Sprenarova is the Founder & CEO of LUCKY SOL REAL ESTATE. With a degree from business economic school, years of experience in the Costa del Sol area and a wealth of customer service experience, Lucie has a distinctive, more personal approach to real estate. Known for her genuine passion, social skills and love for the Costa del Sol, she strives to ensure that every client receives exceptional service.

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