The province of Málaga has firmly established itself as the leading hub of Spain’s luxury real estate market. According to a recent study by Lucas Fox, the Costa del Sol accounts for 30% of the country’s prime real estate, followed by Mallorca at 27%.
In third place, although significantly behind the top two, is Madrid, with 9%. Close behind the capital are Barcelona and Alicante, each with 6% of the total luxury property offering. Rounding out the ranking are Ibiza (6%), Girona (4%), Cádiz (2%), Tenerife (2%) and Menorca (1%).
Luxury on the Costa del Sol
The luxury real estate company reports that prime homes (those priced over €2.5 million) now account for 10% of the total real estate market in Málaga, underscoring the growth and influence of this sector on the Costa del Sol.
Lucas Fox highlights three major developments currently underway in Málaga: Be Grand Limonar, La Térmica Beach and Málaga Tower. These luxury residential complexes, located on the beachfront, are set to become iconic locations on the Costa del Sol.
Rodolfo Núñez, director of Lucas Fox Málaga, comments, “The luxury sector is expanding, particularly in Málaga, due to its exceptional conditions. The area is highly attractive to international clients seeking unique experiences and an exclusive lifestyle.”
Lack of new construction, a brake on the market
The Costa del Sol is renowned for its enviable climate, stunning beaches and vibrant cultural and culinary scene. This makes the region an ideal setting for the luxury real estate market. However, Lucas Fox has identified a significant challenge: a shortage of new construction.
Despite strong demand from buyers, particularly international clients and the area's growing population, the limited supply is driving prices up. According to the luxury real estate agency, prices have risen by 5% in the first half of 2024.
Núñez emphasises that "it is essential to promote new construction to meet demand and allow the market to continue growing. This would not only benefit the local economy but also help further strengthen Spain's reputation on the global stage."
Málaga, place of residence
In this context, Lucas Fox reports that 57% of high-net-worth buyers purchase a home in Málaga as a second residence, 29% as a primary home and 7% as an investment. The remaining percentage involves other types of real estate transactions.
Living in Málaga historic centre: the heart of the city
Málaga’s historic centre is a vibrant hub of life, history and culture. Living here means being surrounded by charming historic streets while enjoying all the conveniences of city life. This neighbourhood is the beating heart of the province of Málaga's capital, where tradition seamlessly blends with modernity. Discover what living in the historic centre is like and immerse yourself in its unique atmosphere.
