looking to buy a home?Submit this Form and Benefit from our 25 Years' Experience & Strong Local Network.
As has been the case on several occasions over the last 12 months, Costa del Sol property has registered the highest price increases in Spain. The latest places the uptick at 11.5%, taking the average square metre price in the province to €2,682.
Real estate in Spain generally went up by 5.2%, although many provinces posted considerably higher increases. The latest figures mean that house prices in many parts of Spain are now on par with those before 2008.
Costa del Sol property sees the biggest uptick
Statistics released in early September by Fotocasa show that property values have soared throughout the country. But nowhere more so than the Costa del Sol. This part of southern Spain saw an increase of 11.5% in real estate prices in the 12 months to August.
The figure is the highest in the country, although property in the Balearics and Alicante saw similarly substantial jumps. Prices on the islands and Costa Blanca rose by 10.9% and 10.7%, respectively.
In terms of square metre prices, the latest increase takes the average to €2,682 on the Costa del Sol. As a result, its property is the sixth most expensive in the country.
Property prices in Spain
The Fotocasa statistics revealed that house prices increased throughout Spain. 80% of the country’s 50 provinces registered a rise, and in general, prices went up by 5.2%. This latest rise is the highest since July 2019 and a clear indication of the busy real estate market in Spain.
Corroboration of the general trend
A separate report published by Pisos.com confirmed the Fotocasa findings, albeit at a slightly lower level. According to Pisos.com, Costa del Sol property registered an increase of almost 10% (9.86%) in the year to August, taking average prices to €2,367 per square metre. The figure was the third highest in the country.
When it comes to national figures, Pisos.com reported a broadly similar increase for property in Spain generally.
Reasons behind the price surge
Analysts attribute the latest double-digit increases in many provinces to two main factors.
Firstly are the recent rises in the Euribor. Since January this year, the benchmark for mortgage lending has been rising steadily and by the end of August, it stood at 1.5%. As a result, many homebuyers are racing to buy property on the Costa del Sol before interest rates go up even further.
The second factor behind the sharp rises in property prices lies in the lack of supply. The resale real estate market has registered frenzied levels of activity since the middle of last year.
While the new-build market has been similarly busy, it currently has several significant obstacles in its way. They include the slowdown in construction caused by the shortage of materials. Consequently, the resale market is busier than ever, pushing prices ever higher.
Costa del Sol property market this autumn
Several local markets on the Costa del Sol suffer from a lack of supply. Malaga city is an example, but others still have plenty to offer buyers in both the new-build and resale sectors.
New developments in Estepona are a case in point, and in this part of the Costa del Sol, launches of new projects are commonplace. Benahavis is another example.
If you’d like to buy a Costa del Sol property this autumn, do get in touch with our team. We’ve been helping buyers find their perfect home since 1992, so our knowledge of the area and its market is second to none.