Málaga: High demand from international buyers leads to top prices
The capital of the province of Málaga, which shares the same name, is the sixth largest city in Spain and one of the most popular holiday destinations on the Iberian Peninsula. One of the top locations here is the historic city centre and La Malagueta. In 2018, residential property sold here for top prices of 9,000 euros per square metre. “The premium area of La Malagueta is located directly by the beach and is characterized by a lack of available building land. This has led to a clear surplus in demand and consequently to a rise in property prices,” said Mario Garnica, Director of Engel & Völkers Málaga. Around 60 percent of prospective buyers come from abroad, in particular from Scandinavia, Germany, Belgium, France, England, Ireland and the Netherlands. While international buyers in Málaga were showing a growing interest in penthouses and villas, interest from potential buyers from Spain tended to focus on townhouses and apartments.
Marbella: 25,000 euros per square metre for newly-built villas
The city of Marbella is set right on the Mediterranean Sea with the Sierra Blanca mountains as its backdrop. It is synonymous with luxury and exclusivity, and is a highly desirable holiday destination all year round. The highest prices in 2018 were reached in the east of Marbella. In Los Monteros neighbourhood, prices per square metre for newly built villas were as much as 25,000 euros. In the west of the resort, prospective buyers tended to look for contemporary villas with at least 400 square metres of living space, all the latest technical fittings and substantial garden grounds. Other purchase criteria included proximity to golf courses and sea views. Properties of this kind in premium locations such as Guadalmina Baja commanded top prices per square metre of 10,000 euros. Marbella’s so-called “Golden Mile” stretches more than five kilometres along the coast. The interest from the predominantly international buyers is centred here on new properties by the beach. Maximum prices reached 9,000 euros per square metre.
Outlook: Prices are forecasted to rise
Real estate on the Costa del Sol remains an attractive investment, especially for international clients. “We anticipate the rise in property prices to continue over the course of this year. We expect a growth of seven to ten percent in Málaga,” said Mario Garnica. Engel & Völkers also foresees a positive growth on the property market in Marbella. “Demand for luxury real estate remains high. Major new construction projects, such as the exclusive ‘The Collection’, are springing up in response to this. In Puerto Banús near Marbella, we forecast a 25 percent increase in sales in 2019 compared to the previous year,” revealed Smadar Kahana.
More information about the Spanish residential property market can be found in the “Market Report for Spain and Andorra 2018/2019” published by Engel & Völkers.