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September saw Costa del Sol property prices reach a new record and register the highest hike in Spain. Pent-up demand in tandem with its pleasant year-round climate is driving the market now looking forward to an excellent end to this year.
Highest price increase
Figures for September published by Idealista show that the Costa del Sol is currently experiencing demand strong, which is, in turn, pushing prices up. The online portal registered a 9.2% rise in property prices on the Costa del Sol in the year, the highest increase in the country.
The 9.2% jump placed the average square metre at €2,433. The figure is up 13% on pre-pandemic 2019 and 17.9% higher than in March 2007, the last high point of the Costa del Sol property market cycle.
Sixth most expensive in Spain
The increase makes Costa del Sol the most expensive place to buy a property in Andalusia and the sixth in Spain. Just Guipuzcoa and Vizcaya (in the Basque Country), the Balearics, Madrid and Barcelona have a higher square metre price.
In quarterly terms, Malaga province had the second most expensive property in Spain. It stands in fourth place when the average price is taken into account. In Q1 2021 (latest official figures available), the average property on the Costa del Sol cost €240,238, up from €220,000 in 2007.
Did you know? The Costa del Sol has the highest concentration of luxury property in Spain.
According to Idealista, several factors lie behind the sharp uptick in prices for Costa del Sol property. They include:
Pent-up demand from both Spanish and international buyers. However, this demand is stronger among foreigners who were unable to travel to the Costa del Sol for almost 18 months.
Accumulated savings among buyers who now have higher purchasing power and more discerning requirements for a home.
Low-interest rates in most countries making mortgages accessible. The Euribor, the benchmark for mortgages in Spain, currently sits at around 0%, with no real signs of going up significantly.
These factors appear to be here to stay, leading experts to believe that the Costa del Sol property market has excellent potential for the rest of this year. The market has registered one of the most robust recoveries in Spain in 2021.
Western Costa del Sol leading the market
The Idealista figures offer an average for Malaga province and hide significant differences in prices per area. The Costa del Sol is clearly the market leader, with several resorts in the west posting prices well ahead of the provincial average.
As has been the case for the last few years, Benahavis property leads the price ranking. According to Idealista, the square metre in this part of the Costa del Sol reached €3,517 in September. Marbella property came a close second with an average of €3,365. In Estepona, the property registered €2,436 and along with Benalmádena, was one of the resorts with the highest price increases over the last year.
Buy your Costa del Sol property
At Realista, the latest statistics lead us to believe that demand will continue to grow for property in desirable parts of the Costa del Sol such as Benahavis, Estepona and Marbella. If you’d like to join the increasing number of people who have bought a home in this exceptional location, get in touch with our expert team. They will be only too happy to advise you on where and what to buy to ensure your new home ticks all your boxes.