The real estate 'boom' hits the luxury market on the Costa del Sol, with more than 5,500 euros per square meter

The deeply ingrained real estate market crisis is not only prevalent in major capitals like Madrid or Barcelona, but also in areas associated with international tourism such as the Costa del Sol, where an excessive lack of supply collapses in the face of the burgeoning demand, especially from foreigners. The same situation is experienced by the luxury market and the high-end vacation segment.

One of the epicenters of international residential luxury is the Costa del Sol, states the entity Property Partners. Beyond its touristic appeal, what this region in the south of Spain conceals is a market strained by a lack of supply, scarce land available for building, and high foreign demand. The result is soaring prices that seem to have no ceiling and fierce competition for each available property, they claim.

In this regard, the real estate market of the Costa del Sol, with Marbella and Estepona as major players, has established itself as one of the preferred destinations for international buyers with high purchasing power, explains the real estate business network Property Partners.

Specifically, more than 70% of the transactions in prime areas recorded by the residential property intermediary are of foreign origin. Predominantly, these buyers come from Northern Europe, the United States, and the Middle East, who lead the transactions.

More than 5,500 euros is the average price per square meter in exclusive areas of the Costa del Sol. Moreover, in luxury developments on the beachfront, it reaches record figures, stipulates the real estate intermediary. An example of this is Marbella, one of the most demanded localities where the average price per square meter in this type of housing reached its record figure of 5,206 euros.

However, the lack of available land and, consequently, the scarcity of supply results in, in some areas, one out of every five prime homes being sold in less than ten days.

To this dynamism in sales, we must add the rise of new construction homes and sustainable developments, which are redefining the residential offer and attracting an increasingly demanding buyer profile. For Property Partners, all indicators suggest that the pressure on the market will continue to grow over the next year.