Marbella’s Changing Property Market

Located in the famous Costa del Sol, Marbella is fast emerging as one of Europe’s most popular residential tourism destinations, offering a fantastic blend of luxury, culture, and breathtaking natural beauty. Among the most desirable of areas is the Golden Triangle, bordered by Benahavís, Estepona, and the Marbella Golden Mile, some of which are experiencing a shortage of luxury properties below €7 million.

Property Prices in Marbella and Benahavís

Málaga region is renowned for its luxury real estate, accounting for a significant 34% of Spain’s high-end properties valued over €3 million, with a big portion of those located in the Costa del Sol, according to the Report of Luxury Home Market of Spain 2023 by Hiscox International Insurance. In recent years, Marbella has been increasingly celebrated for its outstanding mix of luxury, culture, and stunning natural landscapes. Just this year, Marbella has secured a spot among Europe’s top 20 destinations for 2024 by the European Best Destinations (EBD) organisation, an acknowledgement that underscores Marbella’s natural beauty, international amenities, and high-end lifestyle activities and highlights it as a prime destination for residential tourism.

This fame has been accompanied by a surge in demand for luxury homes under €7 million, leading to an unprecedented scarcity of such properties, reflects Mary Dunne, Founder and Director of MPDunne & Hamptons International, and a prominent figure in Marbella’s luxury real estate market. This trend is a testament to Marbella’s allure, attracting discerning buyers to its prime locations, such as La Zagaleta in nearby Benahavís, Cascada de Camojan, Sierra Blanca, and the Marbella Golden Mile. These areas are the best and most expensive places to live around Marbella and among the best in Spain, offering an unparalleled lifestyle that blends modern luxury with natural splendour.

Mary´s observation fits the overall trend of increasing housing prices in the Marbella area. According to Idealista’s evolution of housing prices in Marbella statistics, the average price per square metre has increased around 67.8% in the three years leading to March 2024, including a 1.1% rise in the last year, now standing at €4,596 per built square metre. Similarly, Benahavís property prices have increased around 32.1% in the same period to an average of €4,402 per built square metre, including a 12.5%surge in the last year. According to Idealista statistics, the Golden Mile – Nagüeles area is among the most expensive, where average prices have increased 14.6% in the last year to an average of €6,041 per square metre. Similarly, prices in the La Zagaleta – El Madroñal area experienced a 18% increase in the previous year to an average of €6,800 per square metre.

Changing Demographics, Demand and Scarcity in Marbella´s Property Market

Accompanying this change, Málaga’s property market is also experiencing a shift in its demographic profile. Gone are the days when the typical buyer was a successful businessperson in their golden years. Today, the landscape is becoming increasingly dominated by a younger, vibrant generation of tech entrepreneurs and investors in their 30s and 40s. These individuals, heralding from sectors such as blockchain, cryptocurrency, and digital innovation, are drawn to Marbella for its promise of the ultimate lifestyle for their families, making it one of the best areas for internationals to buy property.

Commenting on this trend, Mary highlights that “the increasing popularity of Marbella’s prime locations is largely due to the exceptional variety of international schools and facilities these areas offer.” She continues that this, combined with the security of gated communities and incredible views of the Mediterranean and surrounding mountain ranges, underscores these prime areas as the best locations in Marbella for anyone seeking both luxury and tranquillity.

The growing demand for luxury properties in these areas, such as our recent sale of a family villa in La Zagaleta for €5.5 million after only a few months on the market, underscores the limited availability of such exclusive residences. This scarcity highlights the need for potential buyers to act swiftly to secure their dream home in this price range in these sought-after destinations.

Why and How to Buy Property in Marbella

With the quality of high-end properties, Marbella is coming to represent the peak of luxury living in Spain, offering a blend of fantastic weather, modern and traditional culture, high-end amenities, and natural beauty that is arguably unmatched. It’s enduring appeal is not just in its luxury properties but also in its lifestyle. With direct connections to over 140 cities across Europe via the Málaga Costa del Sol airport, proximity to capital cities, and connection with nature and international amenities, Marbella caters to a diverse range of preferences and needs. This makes it one of the best places to buy property in the Costa del Sol and an idyllic location for those seeking the ultimate Mediterranean living.

Whether you are an entrepreneur seeking a family home, a sun seeker looking for the ultimate lifestyle in your Golden years, or a discerning investor looking for a lucrative opportunity, Marbella’s prime property market awaits, ready to provide a lifestyle that is truly second to none. If you are considering buying or selling property in Marbella, Benahavís, or Estepona, the experienced team at MPDunne & Hamptons International is ready to provide expert advice and guidance you can trust.