The luxury property sector in Andalusia is experiencing one of its best times ever, with demand far outstripping supply. Marbella and its surroundings are now a key market point for the most exclusive properties in Spain, as well as in Europe.
Spain’s mecca for luxury real estate
Marbella, a 150,000-strong city in the heart of the Costa del Sol, has long been synonymous with luxury and prestige – not least in the context of the European property market. This seaside paradise, surrounded by the blue Mediterranean Sea and sheltered by the Sierra Blanca mountains, is the apex of the ‘Golden Triangle’ of the Costa del Sol, which also includes enclaves such as Estepona and Benahavis.
Prized for its lavish villas and estates, with prices reaching up to €36 million, the property market in Marbella and the Costa del Sol is experiencing an unprecedented boom. Demand for luxury flats and homes is outstripping supply, signalling the best moment in the market’s history. However, the magic of Marbella is not only about real estate, but also about lifestyle, offering Michelin-starred restaurants, exclusive clubs or international schools. All this contributes to the city’s reputation as a year-round cosmopolitan hub.
The most prestigious addresses in Spain
An analysis by the Idealista portal shows that half of the ten most expensive addresses in Spain are located in Marbella and its immediate surroundings. The prices of flats in these locations are nearly 40 times higher compared to the most prestigious streets of other resorts. This region is also where six of the ten most expensive houses offered for sale in the entire country are located, with prices exceeding €30 million. Experts are of the opinion that these will not remain on offer for long – the current demand in the premium property market significantly exceeds supply.
The average value of luxury estates in Marbella oscillates around €8 million. However, it is the La Zagaleta estate, some 21 kilometres from the city centre, that establishes the pinnacle of luxury in the Spanish property market. The average price of a residence in this enclave is €10.7 million, with some properties reaching a dizzying price of up to €36 million. Together, the La Zagaleta complex and the other residential enclaves in Estepona or Benahavis create the essence of luxury in the Spanish property market.
Property buyers are mainly foreigners. As a result, Marbella can boast its status as a cosmopolitan city, open to nationalities from all over the world. It is estimated that as many as 155 nationalities are currently represented among the inhabitants of the city and its surroundings. You can read more about the profile of buyers and data from the Spanish property market in our blog.
Luxury brands support real estate in Marbella
The potential of the real estate market on the Costa del Sol and in Marbella itself is enormous. This is evidenced, among other things, by the developments under construction, backed by the most prestigious and luxurious brands from around the world. Hotels from chains such as Four Seasons Hotels and Starwood “W” Hotels and Resorts will be built here in the coming years.
However, this is not the end of the investments. In addition to the traditional hotel complexes for world-famous resorts, new luxury residential developments will also be built on the Costa del Sol. Amongst other things, there has been a recent buzz about a project which will see 53 villas signed with the Lamborghini logo being built in Benahavis. The Karl Lagerfeld brand is also investing, with its logo on five more homes being built on the Golden Mile – at $15 million apiece – as well as Dolce & Gabbana, with plans to build 92 villas.
The attractiveness of the Marbella property market is further enhanced by the celebrities who have chosen Marbella as their home. However, it is not only the rich and famous who are enchanted by the charm of the Costa del Sol. In this aspect, the trend of ‘digital nomads’, which has resulted in an increase in the influx of professionals between the ages of 35 and 50 who, thanks to technological developments, have the opportunity to combine work and leisure in one of the best places to live in Europe, is very important.
