The Agency, a US real estate company specialising in the prime segment, has launched its expansion into southern Spain by publishing its first Annual Real Estate Market Report on Marbella and the Costa del Sol. This report highlights the current and future trends of the luxury market in this region, confirming its dynamism.
Growth in the Costa del Sol's luxury real estate market
The Agency's report points to a rise in investment by Americans on the Costa del Sol, interested in buying property as a second home or investment. The analysis covers the property market, the rental market and the tourist flat sector.
Leif Orthmann, managing partner of The Agency, highlighted the opportunities for US investors in Marbella: "The annual Marbella Real Estate Market Report demonstrates the exceptional opportunities available to US investors. Marbella's luxury market is thriving, and its appeal as a top destination is only set to grow further.
Marbella: a favourite destination for American tourists and shoppers
US tourism in Spain has increased significantly. In 2023, 3.8 million Americans visited Spain, and in the first two months of 2024, the figure reached 337,062 – an increase of 23.7% over the previous year. This increase is also reflected in higher visitor spending, which amounted to €8 billion in 2023, 50% more than in 2022.
The report highlights the importance of direct air routes between Spain and the United States for this growth. By 2024, there will be 24 direct flights connecting 11 American cities with five Spanish cities, including a new route between Malaga and New York. Malaga has seen an increase in US visitors in particular, with 174,951 tourists in 2023, up 26.6% on the previous year.
Nationally, the Spanish property market continues to attract international investors, despite a 10% drop in foreign purchases in the second half of 2023. Property prices have remained stable. Marbella stands out as a preferred destination for US buyers, offering a safe and stable environment amid global geopolitical tensions.
The Andalusian property market is showing solid growth. In 2024, a 12.3% increase in per-square-metre prices and a 13.4% increase in home sales transactions are expected. Demand, from both domestic and foreign buyers, has consolidated Andalusia as an attractive destination for real estate investment.
In Marbella, property prices have increased by 10% in the last year, reaching an average of €4,533/m2 in February 2024. Areas such as Nagüeles-Milla de Oro, Nueva Andalucía and Las Chapas-El Rosario are noted for their high property prices.
The Agency's report ranks Marbella as the 16th most expensive city in the world for luxury residences, surpassing Madrid and Dubai. New builds and renovated properties in exclusive areas can fetch prices of up to €28,600 per square metre. The rental market also shows remarkable figures, with rent averaging at €2,263 per property.
Benjamin Beza, sales director of The Agency Marbella - The Belleside Team – emphasised the region's appeal: "Marbella's strong growth in the real estate sector highlights the region's unique appeal. With its luxurious lifestyle, beautiful scenery and solid market fundamentals, Marbella is increasingly becoming a top choice for discerning investors in the United States."
In short, The Agency's report confirms that Marbella and the Costa del Sol continue to establish themselves as preferred destinations for US investors and holidaymakers, offering a growing luxury property market and an attractive lifestyle.
Property for sale in Marbella and the Costa del Sol
Marbella epitomises luxury living, and its property market is a testament to this. The diverse range of properties includes exquisite villas, stylish apartments, charming townhouses, and opulent penthouses. Many of these properties feature breathtaking views of the Mediterranean Sea, pristine golf courses, or the stunning mountain backdrop.
Located on the renowned Costa del Sol, Marbella is part of a region celebrated for its beautiful coastline, vibrant culture, and year-round sunshine. The Costa del Sol offers a rich lifestyle with a blend of modern amenities and traditional Andalusian charm, attracting visitors and residents from all over the world.
Whether you're looking to buy a luxury home in Marbella or the Costa del Sol or seeking a prime investment opportunity, idealista is here to assist you.
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