Foreign buyers love Costa del Sol, and not just Marbella
Since the start of the tourist boom on the Costa del Sol in the 1950s, the region has appealed to foreigners not only as a holiday destination but also as an ideally located region to own a second home on the Mediterranean.
Costa del Sol - The Jewel of the Mediterranean
Spain’s sunshine coast has long been a popular travel destination. Its 160 kilometres of beaches, award-winning gastronomy, beautiful landscapes, year-round mild climate, charming white villages, wide variety of sports and fascinating traditions are just some of the reasons why increasing numbers of people choose to visit Spain’s most southerly coastline. The region has experienced spectacular growth in recent years.
A highly desirable Mediterranean destination
Costa del Sol is Marbella… and more!
Most of the Costa del Sol belongs to Málaga Province, which incorporates popular towns such as Torremolinos, Fuengirola, Estepona, San Pedro de Alcántara, Mijas and Benalmádena. Marbella is probably the most well-known town along the Costa del Sol. Once a former fishermen’s village, it still preserves its historic centre but is more renowned as Spain’s number one party destination, thanks to its proximity to Puerto Banús and its vibrant restaurant and nightclub scene. Moving inland, you find picturesque villages such as Ronda, Gaucín, Ojén, Antequera and Casares. The Port of Málaga is one of the oldest in Spain and is a regular destination for luxury cruise ships bringing in thousands of tourists every year.
Foreigners represent 9,2% of property buyers
Since the start of the tourist boom on the Costa del Sol in the 1950s, the region has appealed to foreigners not only as a holiday destination but also as an ideally located region to own a second home on the Mediterranean. Sales to foreigners in the province were around 9,2% of all buyers within the province.
Looking at buyer nationalities, the British continue to be dominant in Andalucía.
Property prices at €2,469 per square metre in Malaga
Prices in Málaga Province have seen strong growth since midway through 2014 when property prices averaged €1,477 per square metre. In January 2022 prices averaged €2,469 per square metre, an increase of 9,2% compare to the average property price of €2,270 per square metre in the second quarter of 2007.
New build or resale?
Since the start of 2013 many new projects were launched on the Costa del Sol, in response to the growing demand for higher quality homes with modern features. These contemporary projects have been driving the market forward and also pushing up prices. More recently, however, there has been a slight shift in buyer habits. Some investors are choosing to renovate older homes which tend to offer more square metre per Euro than new builds. Renovations also offer decent investment potential as long as costs for works and resale prices stay reasonable.
The Costa del Sol is reliant on the international market, so economic, political and social elements cannot be ignored. The abolition of inheritance tax has had a positive effect. Brexit initially had a negative effect on the numbers of British buyers but they are now beginning to come back. The long-term effects are still unknown, however. The region could also benefit from tax reform and more investment-friendly measures in the future, but overall the future for the Costa del Sol looks very sunny.
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