Marbella Consolidates Its Position as the Epicenter of Luxury Real Estate in Europe

A Booming Market That Continues to Break Records

• The remarkable performance of Marbella’s real estate market is far from a temporary surge; it represents the dawn of a new era of unprecedented expansion that is set to redefine the future of the region’s real estate sector for decades. This insight comes from the latest Marbella Property Market Report prepared by the real estate agency Panorama.
• Marbella’s real estate market is currently experiencing exceptional growth, with demand consistently outstripping supply and driving prices upward.
• The city has been awarded prestigious international accolades such as the “Best Overall Destination” in 2024, further solidifying its global recognition and appeal as a hub of luxury.
• High-quality tourism has seen significant growth, with a notable increase in visitors from the U.S., Canada, and the Middle East, further bolstering demand in the real estate sector.
• This surge in demand, coupled with limited supply, has led to an average 13.7% increase in sales prices over the past year, reaching new historic highs.

Marbella, September 2nd 2024 – Marbella’s residential property market has reached new heights of excellence and sophistication, as revealed in the recent “Marbella Property Market Report 2024,” prepared annually by Christopher Clover, Managing Director of Panorama Properties, Marbella’s longest established real estate agency with over 54 years of experience in the sector. This report details the significant transformation the market has undergone, driven by an unprecedented boom in sales activity following the pandemic, positioning Marbella at the forefront of the world’s ultra-luxury destinations. This recognition is further evidenced by the city’s receipt of major awards such as the “European Best Destination” and “Best Overall Destination” in 2024.

The Marbella property market has maintained its dynamic evolution, with sustained growth in both 2023 and 2024. In 2023, sales in the Golden Triangle (Marbella, Estepona, and Benahavís) reached a total of 8,243 properties, surpassing pre-pandemic 2019 figures by 24.55%. This upward trend continued into 2024, with a 19.47% increase in sales during the first quarter compared to the same period in 2019.

Buyer profile and key statistics

Real estate investment continues to attract international buyers, with growing demand from citizens of the United Kingdom, Sweden, and the Netherlands, who lead the market in acquisitions. According to the report, British buyers account for 18.58% of total purchases, followed by Swedes with 10.78% and the Dutch with 8.5%. Belgians and Germans also contribute significantly, while there has been a notable increase in buyers from the U.S., Canada, and Middle Eastern countries such as the United Arab Emirates and Saudi Arabia. Overall, international buyers represented 33.7% of total homes sold in 2023 in the province of Málaga.

This influx of foreign buyers is driven by the search for the luxurious and exclusive lifestyle that Marbella offers in abundance. The city attracts not only high-net-worth individuals looking for a second home but also those interested in luxury properties as a secure and profitable long-term investment.

Sustainable urban development

Marbella’s new General Urban Development Plan (PGOU) is a cornerstone of the city’s growth strategy. Initially approved in March 2023, this plan focuses on the sustainable and balanced expansion of Marbella, aiming to preserve its distinctive character as a “Garden City.” With a significant 6.7% increase in the official population over the past five years, the PGOU seeks to provide a high-quality living environment that respects the natural surroundings.

Comparison of actual sales prices

Marbella’s real estate offering continues to show an upward trend in sales prices, reflecting the strength and attractiveness it maintains globally. According to Panorama’s report for 2024, demand outstrips supply, driving sales prices that have experienced an average increase of 13.7% between June 2023 and June 2024, reaching a new all-time high of €4,812 per square metre. This value represents more than double the average price per square metre recorded a decade ago, underlining the sustained growth and revaluation of properties in the region.

In the luxury apartment segment, prices in Marbella start at around €6,000 per square metre, with beachfront properties on the prestigious Golden Mile reaching up to €30,000 per square metre, and in some exceptional cases, even exceeding these values. On the other hand, luxury villas, both new and renovated, show prices starting at 8,000 euros per square metre and can reach 14,000 euros per square metre in the most exclusive areas, with certain exceptional properties reaching even higher prices.

It is also worth noting that although relatively high interest rates have made home purchases more expensive for those in need of mortgages, it is interesting to note that less than 10% of home purchases in the luxury segment of the Marbella market, which we define as properties with sales prices above €2,000,000, are made with mortgage loans.

Compared to other luxury destinations globally, Marbella has established itself as a strong competitor, rising to 13th place in the global ranking of luxury destinations in 2024, overtaking iconic locations such as Mallorca and Vancouver, according to Knight Frank’s Wealth Report 2024. This information not only highlights Marbella’s competitiveness in the global market, but also reinforces its position as one of the most sought-after real estate investment destinations in Europe and the world. Despite high prices, Marbella continues to attract international buyers and investors, ensuring a bright future for the city.

Compared to other luxury destinations worldwide, Marbella has established itself as a strong competitor, rising to 13th place in the global ranking of luxury destinations in 2024, overtaking iconic locations such as Mallorca and Vancouver, according to Knight Frank’s Wealth Report 2024. This data not only underscores Marbella’s competitiveness in the global market but also reinforces its position as one of the most sought-after real estate investment destinations in Europe and beyond. Despite high prices, Marbella continues to attract international buyers and investors, ensuring a bright future for the city.

Rising rental market

Meanwhile, Marbella’s rental market has also seen significant price increases for both long- and short-term rentals. Average long-term rental prices have risen by up to 10.3% on the Golden Mile, reaching €19.2/m² per month. The shortage of available properties for long-term rental, combined with growing demand, continues to push prices steadily upward. As for short-term rentals, new regulations introduced in 2024 have ensured greater professionalization of the sector, although they also add an additional administrative burden for owners and investors.

Future Outlook

Looking ahead, Marbella’s real estate market is on the brink of an exceptional growth period. Its success is not confined to the city alone but extends to neighbouring municipalities as well, consolidating the area as a global luxury epicenter.

By 2024, investments in Marbella are expected to exceed €800 million in major building permits. This economic dynamism reflects the city’s continued growth, which has also reached record figures in employment, with over 80,000 contributors and unemployment at its lowest level ever.

“This momentum will not only continue but will accelerate in the coming years, further consolidating Marbella as a leading destination for real estate investment. The market’s performance is not merely a temporary boom; rather, it marks the beginning of a deep and sustained expansion phase that will define the region’s real estate landscape for decades to come,” predicts Christopher Clover.