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As followers of the Realista blog are well aware, 2022 was one of the busiest years on record for Costa del Sol real estate. The latest statistics confirm this scenario, with both transactions and price rises set to break records. The sales levels, in particular, have led some analysts to refer to 2022 as the “golden year” for property on the Costa del Sol.
Sales could break 2007 record
The latest figures from the Spanish Institute of Statistics reveal that there were almost 40,000 sales of Costa del Sol property between January and November last year. Specifically, 39,445 units changed hands.
The figure represents a 23% increase on the same period in 2021 and brings the Costa del Sol market close to its 2007 record. 15 years ago, transactions reached over 42,000 and analysts believe that the close of 2022 will see a similar figure.
Resales dominate the market
Once again, resale properties took the lion’s share of sales and totalled around 31,000, a rise of 41% compared to January to November 2021. For their part, new builds saw around 8,300 sales, an increase of 6.6% from last year.
The imbalance of the two types of property reflects the booming resale market on the Costa del Sol and the lack of new construction. In 2023, this situation is expected to continue.
Double-digit price hikes in 2022
In tandem with brisk sales went sharp price upticks as supply failed to keep with supply in the province of Malaga. According to a Fotocasa report for 2022, resale prices for Costa del Sol real estate soared by 12.4% last year, bringing the average square metre to €2,774.
The annual price increase made Malaga the most expensive province in Andalusia, where property rose an average of 7.3%. The uptick was also considerably higher than the national average of 7.5%.
Reasons behind brisk sales and price rises
Analysts attribute the busy market to a “now or never” attitude among buyers, keen to purchase before interest rates rise further. According to Fotocasa, the Euribor increases during 2022 drove many buyers to take buy sooner rather than later.
Experts point to the persistence of pent-up demand among buyers. However, most expect the sales rate to slow down slightly over the next few months in tandem with more rises in interest rates. Prices should therefore moderate during the first half of 2023.
Most expensive Costa del Sol real estate in Fuengirola
The Fotocasa report also revealed that Fuengirola rose to the top of the table for the most expensive properties on the Costa del Sol. At the end of 2022, homes in the resort had an average asking price of €3,454 per square metre, up 19.6% in the year.
The usual leader, Marbella, stood in second position, with the average square metre costing €3,425. Benahavis, another leader of the most expensive property in Spain, was in third place and Benalmádena in fourth.
Another golden year in 2023
At Realista, we believe that the golden year for Costa del Sol real estate is when you find the property that suits you. If you’d like to start your search this year, get in touch with our team. We’ve been finding the perfect home for buyers since 1992, so our market knowledge really is second to none. We look forward to hearing from you!