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In the first four months of the year, foreigners accounted for one-third of all sales on the Costa del Sol real estate market.
Bumper first third of the year
According to statistics included in the Knight Frank Wealth Report for this year, the Costa del Sol real estate market is riding a wave of popularity among foreign buyers. After the brief hiatus of 2020, foreigners accounted for 27.36% of the market last year, a significant percentage.
However, this year looks set to outperform 2021 if the most recent statistics are anything to go by. Between January and April, over 33% of sales of Costa del Sol property were to foreigners.
British and Swedish buyers dominate the market
Despite the obstacles caused by Brexit, the British remain firmly in love with the Costa del Sol real estate market. They took the biggest share of the foreign market last year when they represented 16% of the total.
Hot on their heels were Swedish buyers, who accounted for 14% of the share, while Belgians stood in third place with 9% of the property sales.
Golden Triangle hottest spot
Within the Costa del Sol property market, one place stands out as an absolute favourite with foreigners: the Golden Triangle.
Made up of the localities of Benahavis, Estepona and Marbella, this area is almost exclusively the domain of international buyers. So much so that Knight Frank calculates that over 90% of sales are to non-Spanish purchasers.
Andalucia also sees rise in foreign buyers
The Wealth Report also finds that property in Andalucia has risen in popularity among foreigners over the last two years. The international share of the market amounted to around 11.5% in both 2020 and 2021.
In the first four months of this year, however, this percentage has risen by almost four points to 15.14%. British buyers again take the lion’s share and account for 16.70% of the total, followed (again) by the Swedes with a 10.28% share.
Great expectations for luxury property
The Wealth Report reveals that primary and secondary homes make up around one third of the assets belonging to high-net-worth individuals. It also reports that the 5 million new millionaires that emerged in 2021 has almost two-thirds of their wealth in property.
As a result, analysts expect the luxury sector to continue to perform well throughout this year and beyond into 2023.
Pent-up demand and availability of wealth should ensure that prime real estate features at the top of investors’ portfolios for the foreseeable future. Not least on the Golden Triangle, home to some of southern Europe’s best high-end property.
Join them?
If you’re considering buying a property on the Costa del Sol, do get in touch with our expert team. We’ve worked in the Marbella area since 1992 and know a thing or two about this dynamic market as a result. Just contact us with your requirements and we’ll find the property that ticks all your boxes.
