Luxury real estate Spain: Malaga is home to more than a third of Spain's luxury homes

According to a study conducted by the insurance company Hiscox, the luxury housing market in Spain is dominated by the province of Malaga, particularly the region known as the "Golden Triangle," comprising Benahavís, Estepona, and Marbella. This area takes the lead in terms of both property transactions and the current availability of luxury homes for sale in Spain.

Where to find luxury property in Spain

Hiscox, a specialised company providing advice to high net worth clients, has conducted a report revealing that Malaga currently boasts over 2,500 homes priced above 3 million euros. This accounts for 34% of the total number of luxury homes identified in Spain, surpassing 7,000 units.

Following Malaga, the Balearic Islands secure the second position with 33% of the luxury housing market, while Madrid holds 10% and Barcelona has 6%. These four provinces together represent 80% of the luxury housing supply in Spain, as stated by Hiscox. 

The findings presented in the Hiscox report align with the data published by idealista in 2022. idealista's data highlighted that 37.2% of properties priced at three million euros or higher available on the market were located in Malaga, specifically 2,895 luxury real estate listings.

Luxury real estate investment in Spain an attractive option

According to the report, Spain ranks as the fourth most desirable country worldwide for luxury home investments, trailing behind the United States, the United Kingdom, and Australia.

Spain is regarded as a secure investment opportunity and an appealing destination to establish a secondary residence, particularly for international buyers from countries like the United Kingdom, Germany, France, and China. The luxury sector constitutes approximately five percent of Spain's overall residential market, as indicated by the report, and continues to be an attractive option thanks to its ongoing Golden Visa Program which has recently come to an end in other European countries. 

In spite of being a top investment destination for foreigners, there are some regulations on the table that could put limits on foreign investment in Spain. For example, the Balearic Islands are currently facing political pressure to impose restrictions on home purchases by foreign buyers. Approximately one-third of all annual property purchases in the region are made by foreigners. Although not all of these purchases fall within the luxury segment, the demand generated by foreign buyers has been acknowledged by some as a factor contributing to the overall increase in house prices.

Who is buying luxury property in Spain?

Hiscox highlights that the foreign buyer remains the primary customer in the luxury real estate market. Malaga, historically, has been the top destination of choice for British buyers looking to purchase luxury homes in Spain. Despite Brexit, the British continue to represent the majority of foreign buyers, not just in the province of Malaga, but also across the country, according to the consultant.

Following the British buyers, French and Northern European nationals (such as Swedes and Belgians) are prominent, with an increasing presence of German, Austrian, and Dutch buyers.

On the national front, buyers from Madrid stand out as the main purchasers of luxury homes. Hiscox notes that after the pandemic, these buyers have opted to establish their primary residences in Marbella, taking advantage of the flexibility provided by remote work.

"In the current context of uncertainty, high inflation and downward asset value correction, there is a segment that continues to attract investors: Living. And the luxury segment is better positioned as it is less vulnerable to these factors," states Hiscox.

The most sought-after areas for luxury property in Malaga

Marbella and Benahavís are the most highly sought-after areas for luxury properties within the province of Malaga. Within these municipalities, prime locations include the Marbella Golden Mile and the La Zagaleta urbanisation. However, there are other prestigious areas in Marbella, such as Las Lomas, Puente Romano, Lomas de Rio Verde, Puerto Banús, Las Brisas, and Los Monteros, along with El Madroñal in Benahavís.

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