Marbella's real estate market is experiencing a moment of splendor that is more than just a temporary upswing; it is a radical transformation that promises to change the landscape of the sector in the region for decades to come. According to the Panorama Real Estate Market Report, this phenomenon is not just a temporary upturn, but marks the beginning of an era of unprecedented growth. Demand for property in this area has far outstripped the available supply, leading to a significant increase in prices, reflecting a growing interest from both local and international buyers.
Marbella has been recognized worldwide, receiving awards such as “Best Global Destination” in 2024, underlining its appeal as a luxury resort and a privileged place to live. This recognition has attracted an increasing number of high quality tourists, especially from countries such as the United States, Canada and various Middle Eastern nations. This increase in tourism has not only raised the city's visibility, but has also strengthened demand in the real estate sector, contributing to an average increase of 13.7% in sales prices in the last year, reaching record figures that reflect the vitality of the market.
The evolution of the real estate market in Marbella has been remarkable, with figures showing steady growth in 2023 and 2024. In the Golden Triangle, comprising Marbella, Estepona and Benahavís, 8,243 sales were recorded in 2023, representing an increase of 24.55% compared to 2019 data, before the pandemic. This momentum has continued in 2024, with a 19.47% increase in sales during the first quarter compared to the same period in 2019. This sustained growth not only reflects the resilience of the market, but also the growing attraction of Marbella to investors and buyers from around the world.
The real estate market continues to be an irresistible attraction for international buyers, highlighting the growing influx of nationals from the UK, Sweden and the Netherlands, who are leading transactions in the region. According to recent statistics, despite the uncertainties generated by the Brexit, the British make up 18.58% of total purchases. They are followed by the Swedes, who account for 10.78%, and the Dutch with 8.5%. In addition, there is a notable increase in the participation of buyers from the United States and Canada, as well as Middle Eastern nations, such as the United Arab Emirates and Saudi Arabia, which are gaining ground in the market. Overall, international buyers comprise 33.7% of the total number of homes sold in the province of Malaga during 2023.
This remarkable flow of foreign buyers is motivated by the search for a luxurious and exclusive lifestyle that Marbella offers in abundance. The city has established itself as a privileged destination not only for those with high purchasing power who wish to acquire a second home, but also for those who see luxury properties as a safe and profitable long-term investment option. The combination of an enviable climate, a rich cultural offer and a first class infrastructure makes Marbella an ideal place to live and enjoy life.
The real estate investment trend in this region reflects not only the desire to own a home in a privileged environment, but also the search for investment opportunities that ensure a favorable return. International buyers are increasingly interested in properties that not only provide comfort and luxury, but also represent a solid investment in a constantly growing market. This phenomenon highlights the importance of understanding the preferences and motivations of different buyer profiles, which in turn can influence marketing and sales strategies within the real estate sector.
In terms of the evolution of prices in the real estate market, Marbella continues to show an upward trend that reflects its attractiveness and strength on an international level. According to the Panorama report for 2024, demand for property outstrips supply, which has led to an average increase of 13.7% in sales prices between June 2023 and June 2024, reaching a new all-time high of €4,812 per square meter. This increase is significant, as it represents more than double the average price per square meter recorded ten years ago, thus evidencing the sustained growth and revaluation of properties in this coveted region.
In the area of luxury apartments in Marbella, prices start at around 6,000 euros per square meter. However, properties located on the coveted Golden Mile, which are located on the beachfront, can reach impressive figures of up to 30,000 euros per square meter. In exceptional cases, some of these properties can even exceed these prices, reflecting the high demand and attractiveness of the area. As for luxury villas, both newly built and those that have been renovated, prices start at €8,000 per square meter and can rise to as much as €14,000 per square meter in the most exclusive areas, with some exceptional properties achieving even higher prices.
Importantly, although interest rates have risen, making home purchases more expensive for those reliant on mortgages, less than 10% of transactions in Marbella's luxury segment, defined as those properties priced above €2,000,000, are carried out using mortgage loans. This suggests that the majority of buyers in this sector have the ability to make cash purchases, allowing them to avoid the complications that come with mortgages and, at the same time, position themselves favorably in a highly competitive market.
In the global context, Marbella has managed to establish itself as a formidable competitor in the luxury sector, ranking 13th among luxury destinations worldwide in 2024. This rise is remarkable, having overtaken iconic destinations such as Mallorca and Vancouver, highlighting Marbella's growing popularity among international investors and buyers. Despite the high prices, the city continues to attract a significant number of interested parties, which bodes well for the future of Marbella's real estate market, cementing its status as one of the most desirable places to invest in Europe and the world.