Periodic reports on the Costa Tropical property market (Granada province)
This page presents data-driven reports on the Costa Tropical property market, consolidating essential data from public sources to reveal the latest trends and developments. Illustrated with charts and infographics, these reports deliver valuable insights into the residential real estate markets of municipalities such as Almuñécar, Salobreña, and Motril. They are tailored for foreign investors, property buyers, vendors, professionals, and journalists looking for informed guidance when making important financial decisions in this scenic coastal region.
Costa Tropical property market overview
Stretching along the Mediterranean coast of Granada province, the Costa Tropical is gaining attention from international buyers seeking second homes, holiday residences, or investment opportunities. With a unique subtropical climate, dramatic coastal scenery, and a slower pace of development compared to other Spanish coasts, this area offers a compelling mix of lifestyle and value. Focused market reports provide useful insight for anyone interested in this distinctive segment of the Spanish housing market.
Centred around the towns of Almuñécar, Salobreña, and Motril, the Costa Tropical blends traditional Andalusian character with steady growth in foreign demand. While less developed than the neighbouring Costa del Sol, the area is evolving, with increasing interest from European buyers attracted by its charm, affordability, and unspoilt coastline. These reports shed light on market dynamics, helping readers assess both opportunities and potential challenges in this part of the Granada property market.
The reports address a broad range of topics to provide a clear understanding of the market, including:
- Home sales in key municipalities including Almuñécar, Salobreña, and Motril.
- Foreign buyers: market share, nationalities, and buyer trends.
- New-build properties: development activity, pricing trends, and planning context.
- House prices: segmented by area, property type, and historical evolution.
- Mortgage lending: interest rates, volumes, and implications for affordability.
- Construction trends and their effect on local housing supply and demand.
Subscribing to Spanish Property Insight unlocks exclusive access to data and expert analysis, empowering you to make smart decisions about property investments, sales, or purchases on the Costa Tropical. Stay informed and ahead of the market—subscribe today to access the latest Costa Tropical property market reports.
Want one-time access to the latest report without subscribing?
Fill in the form below to get access to this valuable report without subscribing. A secure link and password will be sent to you by email.
2025 H1
Fill in the form above for one-off access without subscribing.
2024 Full Year
The Costa Tropical property market in 2024 experienced moderate but consistent growth, supported by stable buyer demand, rising prices, and a healthy level of new development. Overall sales volumes increased slightly year-on-year, with continued engagement from both domestic and foreign buyers, although the market share of international purchasers edged down. Prices remained on an upward trajectory, especially in consolidated areas such as Almuñécar, while mortgage activity and housing starts maintained positive trends. This report provides a comprehensive overview of the Costa Tropical housing market in 2024, covering key metrics including sales performance, property prices, mortgage lending, and construction activity.
Sales performance
In 2024, the Costa Tropical housing market reported a total of 15,461 home sales, a marginal year-on-year increase of 13% compared to 2023 (Fig. 1-1). This figure was also 29% higher when compared with the ten-year average. Over the past decade, total sales have increased by a notable 96%, suggesting sustained long-term growth in housing demand.
Foreign buyers accounted for 1,704 transactions, representing a year-on-year increase of 8%. This group continues to play a significant role in the regional market, although its overall presence has softened. Of these international buyers in 2024, 1,115 were foreign residents (expats) living in Spain, while 589 were foreign non-residents (FNRs) acquiring second homes or investment properties (Fig. 1-2).
Purchase activity among expats grew by 9% year-on-year, while that of FNRs rose by 7%. Despite this growth in transaction volume, the share of foreign purchases dropped slightly from 11.8% in 2023 to 11.3% in 2024 (Fig. 1-3). Over the last ten years, purchases by foreign buyers have grown by 89%.
New-build home transactions declined to 783 units, an 8% drop compared to the previous year (Fig. 1-4). However, this still marked a small increase of 11% over the ten-year average, with modest overall growth of 11% since 2014.
Within Costa Tropical municipalities specifically, 2,075 home sales were registered in 2024, a small increase of 4% year-on-year and 11% above the ten-year average (Fig. 1-5). This confirms continued demand specific to this submarket of the wider Granada coastal region.
House price trends
During 2024, the average sale price of residential property in the province of Granada reached €129,653 (Fig. 2-1), reflecting a 6% annual increase. In comparison, newly-built properties averaged €151,682, which represented a 20% decline year-on-year — a shift which may reflect rebalancing demand, incentives, or pressure on developers.
Over the past ten years, a comprehensive index tracking property prices in the area has risen from 100 to 132.4 for all properties and to 144.2 for new properties (Fig. 2-2).
This means that new-build property prices have appreciated 44% since 2014 — significantly outpacing the 32% gain in general property prices. This differential could stem from improved energy efficiency standards, modern amenities, and premium locations associated with new developments.
Analysing the shorter-term trend, property prices have risen by 32% over five years, versus 18% for new builds — further underlining the relative deceleration in the new-build segment after a period of strong gains.
Almuñécar case study
In Almuñécar, one of Costa Tropical’s key municipalities, the average asking price in 2024 stood at €2,452 per square metre, a rise of 14% year-on-year (Fig. 2-3). Over the last five years, asking prices have increased by 33%. According to the ten-year index of asking prices, the market has risen from a base of 100 to 143.7, illustrating a 44% gain in vendors’ pricing expectations over the decade.
Mortgage market
A total of 7,491 new mortgages were issued in Granada province during 2024, reflecting a 3% increase year-on-year (Fig. 3-1). This figure is 8% higher than the ten-year average and represents a 56% rise in mortgage activity over the decade, indicating long-term confidence in real estate financing.
The average Euribor rate — the key benchmark for most variable-rate Spanish mortgages — stood at 3.27% in 2024 (Fig. 3-2).
This was slightly lower than the preceding year, with a 15% decrease year-on-year, down from 3.86% in 2023. The Euribor had previously reached its lowest rate of -0.49% in 2021. The current level, while high relative to the past decade, suggests a stabilisation following recent European Central Bank (ECB) tightening. Markets anticipate that the ECB may begin easing rates if inflation moderates, which could provide support for both lending activity and housing affordability in 2025.
Housing starts
The number of new housing starts in 2024, measured by planning approvals, totalled 2,017 units across Granada province (Fig. 4-1). This was a 6% increase on the previous year and a substantial 47% over the ten-year average. Importantly, new starts have increased by 168% over the past decade, indicating strong long-term growth in residential development. This reflects both population expansion and investor confidence in the region.
Summary
- Total home sales rose by 13% year-on-year, reaching 15,461 transactions.
- Foreign buyers accounted for 11.3% of activity, with slight declines in market share despite growth in absolute terms.
- Prices rose by 6% overall, while new-build prices declined by 20% year-on-year.
- Mortgage activity increased by 3%, supported by a slight drop in Euribor from recent highs.
- New housing starts expanded by 6%, with long-term construction growth exceeding 160% over ten years.
Conclusion
The Costa Tropical housing market showed resilience and moderate growth in 2024 against a backdrop of higher borrowing costs and softening foreign demand. While overall transaction volumes and local buyer activity remain healthy, a slight cooling in new-build pricing and foreign market share could suggest a rebalancing in the market. Mid-term trends point to sustained development and increasing domestic demand, while the outlook for 2025 will depend significantly on interest rate policy and wider economic confidence within the eurozone.
Disclaimer
These reports are prepared in good faith using publicly available data. While efforts are made to ensure accuracy, no guarantees are provided regarding the completeness, reliability, or suitability of the information for any purpose. Use of this information is at your own risk.
