Figures released for the Costa del Sol property market during 2021 show it was one of the most dynamic in the country. Price growth was robust in the final quarter of last year and the western Costa del Sol turned out to lead the province’s real estate sector.
One of highest price hikes in country
The latest quarterly report from Tinsa reveals that property on the Costa del Sol saw one of the highest price hikes in Spain between October and December last year. Specifically, house prices rose by 14% in the year to Q4 in Malaga province. The figure is almost double the national increase (8.6%).
Since 2020 was an abnormal year in many areas including Spanish real estate, Tinsa also analyses the average price rises for the whole of 2021. In this department, the Costa del Sol property market also stands out as one of the fastest moving in the country.
Tinsa finds that house prices rose by an average of 7.6% on the Costa del Sol last year. This figure also almost doubles the national rise of 4.3%.
Still room for growth
Despite the significant uptick in Costa del Sol property prices during 2021, values remain well below their highest. According to Tinsa calculations, property prices on the Costa del Sol still sit 31.4% below their peak registered in 2007. This difference means that there is still plenty of room for growth within the general market over the next few years.
However, the case varies on the western Costa del Sol. For example, in Marbella, property prices in December 2021 were 34.9% higher than in December 2007. On the other hand, Mijas real estate values were just 3.8% while those in Estepona stood at 5.5% below their highest 14 years ago.
One of most dynamic markets in Spain
These latest figures confirm what we at Realista observed throughout the last few months of 2021 – last year ranked as a particularly strong year for real estate on the Costa del Sol. The latest Observatory of Urban Environment (OMAU) report for Malaga province reiterates this consolidation.
The OMAU finds a very dynamic market, particularly in Malaga city and the western end of the province. It states that Malaga, Marbella, Mijas, and Estepona represent 80% of the Costa del Sol property market.
The report finds that prices rose by 9.53% in Marbella during 2021 to reach an average of €4,425 per square metre, the highest on the Costa del Sol. Property in Malaga increased by 8.83% last year and in Estepona by a much more moderate 1.14%.
Tap into this market
At Realista, we expect the 2022 property market on the Costa del Sol to follow a similar pattern to 2021. If you would like to tap into this dynamic market, get in touch with our friendly team who will be only too pleased to offer expert advice on where and what to buy. They’ve been selling homes on the western Costa del Sol since 1992, so they know a thing or two!