Marbella, the jewel of the Costa del Sol, has solidified its status as one of the world’s premier luxury real estate destinations. According to Panorama Properties, a leading real estate agency, Marbella ranks among the top twenty cities globally with the most expensive homes, surpassing iconic metropolises like Madrid and Dubai. In Spain, it claims the ninth spot, with Ibiza’s Sant Josep de Sa Talaia taking the lead.
In 2022, Marbella’s luxury property market achieved the highest number of sales in sixteen years, experiencing a remarkable 119 percent growth over the past decade. The so-called Golden Triangle of the Costa del Sol, which includes Marbella, Estepona, and Benahavís, recorded a 123 percent upswing in sales over the last ten years.
Despite a rise in interest rates during the fourth quarter of 2022, which generally increased property acquisition costs in Spain, Marbella and its neighboring regions witnessed an unprecedented surge in real estate transactions. This is primarily attributed to the luxury real estate sector in the local market, where less than ten percent of sales are mortgage-financed, as reported in the 2023 Marbella Real Estate Market Report by Panorama Properties—a venerable agency with over fifty years of experience in the region.
Throughout 2023, the luxury property market has displayed even more robust sales than the previous year, with a notable increase of up to 20 percent in the highest market segment, notes Christopher Clover, CEO of Panorama Properties.
The price points across all housing categories in Marbella surged by an average of 15 percent between June 2022 and 2023, culminating in a historic peak of €4,233 per square meter—double the average per square meter price a decade ago.
Luxury apartments in new developments or renovated units in Marbella now range between €6,000 and €25,000 per square meter, depending on their proximity to the coveted beaches of the Golden Mile. Similarly, newly constructed or refurbished villas in the same area command prices ranging from €8,000 to €14,000 per square meter.
Marbella’s emergence as the sixteenth most expensive city globally for acquiring exclusive residences, with an average selling price of over €50,000 per square meter, places it ahead of prominent cities like Madrid and Dubai, according to Panorama Properties’ research.
What sets Marbella apart is its increasing appeal to buyers seeking vacation accommodations or a second or third primary residence, where they can reside for several months annually, says the CEO of the real estate agency.
The report also highlights that foreign investors purchase more than 90 percent of homes priced over two million euros in Marbella. Notably, the Swedish and Norwegian markets have shown a gradual increase in their market share, underlining their growing presence in the region’s luxury real estate sector.
In this light, Marbella stands as an alluring hub for the world’s elite, offering an exquisite lifestyle intertwined with remarkable investment opportunities amidst the captivating beauty of the Costa del Sol.
