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The latest figures reveal that Costa del Sol property sales show no signs of falling. Quite the opposite in fact, because transactions in the first eight months of this year were just shy of their highest ever in 2007.
Mortgage applications also rose to reach figures similar to those in 2010. In addition, Costa del Sol real estate registered the fifth highest price in Spain, with long-term rentals experiencing the biggest hike in the country.
Costa del Sol property sales are up 44%
According to data from the Spanish Statistical Institute (INE) for August, 29,613 properties changed hands on the Costa del Sol between January and August this year. The figure is 44% higher than in the same period in 2021. Furthermore, the 3,965 sales in August were the most for this month ever.
The latest transactions bring the Costa del Sol property market close to levels last seen at the height of the previous property cycle in 2007. In the first eight months of that year, some 29,869 sales took place, just 0.8% more than this year.
In addition, the Costa del Sol registered the fourth-highest sales in the country. Just Madrid, Barcelona and Alicante saw more transactions between January and August.
Mortgages also up on the Costa del Sol
Loan applications ran in tandem with the frenzied sales market for the first two-thirds of the year. Some 15,670 mortgages were approved from January to August, 20.4% more than the same eight months in 2021. The figure is the highest since 2010.
The average loan reached €176,000, considerably more than in 2007 when the medium for mortgages stood at €165,000. In addition, average loan amounts have increased by 46% on the Costa del Sol since 2017.
Analysts attribute the hike to the profusion of new builds on the Costa del Sol, particularly in the luxury sector.
Property and rental prices soar
Given the high levels of Costa del Sol property sales, it’s no surprise to discover that prices are soaring as a result. According to a report by Gesvalt for Q3 this year, properties went up by 8.3% in 12 months.
The latest uptick brings the average price per square metre for Costa del Sol real estate to €2,264. The figure ranks as the fifth highest in Spain. Within the area, property in Marbella continues to be the most expensive at an average of €2,965 per square metre.
Rental prices skyrocket
However, long-term rentals have seen the most significant increase over the last year. Gesvalt calculates that the average rental price stood at €12.10 per square metre at the end of September. While rates are higher in several other parts of Spain, the Costa del Sol registered the highest year-on-year increase, 17.6%.
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If you’re looking for Costa del Sol property, get in touch with our expert team. We’ve been helping buyers find the perfect property in this market since 1992, so we know it like the back of our hands.