Periodic reports on the West Costa del Sol property market (Malaga province, Andalusia)
This page offers data-driven reports on the West Costa del Sol property market, consolidating key data from public sources to highlight the latest trends and developments. Illustrated with charts and infographics, these reports provide critical insights into the West Costa del Sol residential real estate market, with a focus on flagship municipalities such as Marbella, Estepona, and Mijas. These reports are written for foreign investors, property buyers, vendors, professionals, and journalists looking for insight into the Malaga province / West Costa del Sol property market to help inform big decisions with important financial consequences.
West Costa del Sol property market overview
The West Costa del Sol is a prime destination for international property buyers looking for second homes, holiday properties, or investment opportunities. Renowned for its stunning coastline, luxury lifestyle, and vibrant expatriate community, the region attracts a significant share of Spain’s foreign property transactions. As one of the most dynamic housing markets in the country, a focused report on the West Costa del Sol property market is invaluable for anyone with an interest in this region.
Located in Malaga province, Andalusia, the West Costa del Sol stretches from Marbella to Estepona and beyond. Known for its diverse housing options, from high-end villas to coastal apartments, the market offers both unique opportunities and challenges worth analysing. Key municipalities like Marbella, Estepona, Mijas, Fuengirola, and Benahavís are among the most sought-after areas for buyers and investors.
The reports cover a wide range of topics to provide a comprehensive understanding of the market, including:
- Home sales across Malaga province and key municipalities.
- Foreign buyers: market share, residency status, and second-home investments.
- New-build properties: sales, pricing trends, and index data.
- House prices: general trends and specific insights into flagship municipalities like Marbella and Estepona.
- Mortgage lending: base rates, borrowing costs, and their influence on the market.
- Housing starts and key factors affecting supply and demand.
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2024 Full Year
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2024 H1
West Costa del Sol housing market: First Half of 2024
Sales performance
Total home sales: 18,565 properties were sold during the first half of 2024, reflecting a negligible year-on-year increase of 1% (Fig. 1-1). Compared to the ten-year average, this marks an increase of 14%, and over the decade, sales have risen by 46%.
Foreign buyers: Sales involving foreign buyers totalled 7,073, a year-on-year decrease of 2%. Compared to the ten-year average, this segment grew by 18%, with a decade-long increase of 36%. Among foreign buyers (Fig. 1-2):
- Expats living in Spain purchased 2,058 homes (down 6% YoY).
- Non-residents acquired 5,015 properties, primarily as second homes or investments (down 1% YoY).
Foreign buyer market share: Foreign buyers accounted for 38% of total sales, a slight decline from 39% in H1 2023 and well below the ten-year high of 42% (Fig. 1-3).
New-build sales: New-build transactions surged by 34% year-on-year, with 2,053 properties sold, reflecting robust growth of 14% compared to the ten-year average (Fig. 1-4).
Municipality-specific sales: Key municipalities in the West Costa del Sol collectively recorded 10,073 sales, an annual increase of 3% (Fig. 1-5). Over ten years, this figure has grown by 34%.
Pricing trends
Average prices: According to the Spanish Housing Ministry, the average price of homes sold in Malaga province reached €305,287, an annual increase of 10% (Fig. 2-1 & 2-2). New-build properties were priced higher at €431,949, reflecting a 27% rise year-on-year.
Ten-year index (Fig. 2-3):
- Overall property prices have risen from 100 in 2015 to 185 in 2024.
- New-build property prices have climbed more sharply, reaching 232.
This index signifies significant price growth over the decade.
Five-year changes: Prices for all properties have risen by 85%, while new-build prices have increased by 60%, indicating that existing homes are appreciating faster than new builds.
Marbella case study
According to Idealista, the average asking price of property for sale in Marbella during the first half of 2024 was €4,631 per square metre (Fig. 2-4), representing an annual increase of 12%. This robust year-on-year growth reflects strong demand for properties in Marbella, particularly in the luxury and second-home market segments.
Over the past five years, asking prices in Marbella have increased by 66%, indicating a sustained upward trend driven by the area’s appeal to high-net-worth individuals and international buyers. This level of growth suggests that Marbella remains one of the most desirable and competitive markets on the West Costa del Sol. The combination of premium location, quality amenities, and international demand continues to place upward pressure on property values.
Despite this growth, potential buyers should be aware of price sensitivity, particularly in light of rising mortgage costs, which could moderate future price increases. However, Marbella’s reputation as a high-end destination is likely to ensure ongoing resilience in its property market.
Municipal comparison: Marbella, Benahavís, and Estepona show different growth rates over ten years (asking prices):
- Marbella: Prices have more than doubled to 205.
- Benahavís: Index increased to 182.
- Estepona: Prices grew the most, reaching 224.
Mortgage market
New mortgages: A total of 9,034 new mortgages were signed in H1 2024, reflecting a decline of 11% year-on-year (Fig. 3-1). However, this represents a decade-long increase of 53%.
Euribor rate: The average Euribor rate stood at 3.67%, slightly below its 2023 high of 3.69% but significantly higher than the historic low of -0.49% in 2021 (Fig. 3-2). This reflects tighter monetary policy by the European Central Bank, which has maintained elevated rates to curb inflation, impacting borrowing costs.
Housing starts
Planning approvals: Housing starts totalled 4,870, a 26% year-on-year increase (Fig. 4-1). Over ten years, this figure has risen dramatically by 676%, although current levels remain below the 2019 pre-pandemic high of 5,580. The West Costa del Sol’s recovery from the pandemic has lagged compared to other regions.
Summary: Key takeaways
- Sales volume: Home sales remain strong, with growth driven by new builds and local buyers offsetting a slight decline in foreign purchases.
- Foreign buyer impact: Despite reduced market share, foreign buyers continue to play a crucial role, especially in the luxury segment.
- Price growth: Significant price appreciation across the region, with new builds showing particularly strong performance.
- Mortgage pressures: Higher borrowing costs due to elevated Euribor rates have tempered growth in the mortgage market.
- Construction activity: Housing starts are recovering but remain below pre-pandemic levels.
Conclusion
The West Costa del Sol housing market demonstrated resilience in the first half of 2024, marked by steady sales growth and robust price appreciation. However, the market faces challenges from higher mortgage rates and slower foreign buyer activity. Looking forward, strong demand for new builds and ongoing investment in luxury properties position the market for continued growth, albeit at a moderated pace.
* Municipalities of the West Costa del Sol included in the sales analysis for this report are: Benahavís, Benalmádena, Casares, Estepona, Fuengirola, Manilva, Marbella, Mijas, and Torremolinos.
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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.
The author accepts no liability for errors, omissions, or actions taken based on the content. Information is subject to change without notice.
These reports are for informational purposes only and do not constitute professional advice. Readers should conduct their own research and consult qualified professionals before making investment or business decisions.
By using this resource, you agree the author is not liable for any direct, indirect, incidental, or consequential losses arising from its use.
