Málaga and Costa del Sol - leaders of the real estate market in Spain

The latest report on the luxury real estate market in Spain, prepared by the insurance company Hiscox, a third of luxury housing in Spain is located in Malaga, and the most expensive area to live is Los Monteros in Marbella.

In the province of Málaga for sale offered 2500 houses worth more than three million euros. This represents 34% of the total number of super-luxury properties in Spain and places Málaga in first place. Most of these properties are located in the so-called "golden triangle" formed by Benahavis, Estepona and Marbella.

Los Monteros in Marbella, where the price per square meter reaches 6842 euros, corresponding to the price of villas up to 17 million euros, is the most expensive area to live in the province. The second most expensive area to live in Malaga is Lomas de Marbella-Puente Romano, the average price per square meter here is 6173 euros, and the maximum price for a house - 35 million euros.

In Spain, the Balearic Islands are next with 33% of the total number of luxury homes, followed by Madrid with 10% and Barcelona with 6%. The report also notes little-known neighborhoods such as La Zagaleta, Puerto Banus and Finca Cortesin. Although these neighborhoods are not in the top rankings for price, La Zagaleta has been called "the most exclusive place in Europe." Most of the houses here are owned by foreigners from the UK, Germany, Scandinavia, Russia and Arabia. The report also mentions other areas of Marbella, such as Puerto Banus with a price of 5240 euros per square meter and a maximum price of 15 million euros per property, and Las Brisas with an average price of 5140 euros per square meter and a maximum price of 14 million euros. The report also notes the little-known neighborhood of Finca Cortesin, located between Sotogrande and Marbella. "This development, covering an area of 215 hectares, has been recognized as the best golf resort in Europe for several consecutive years, with a large luxury hotel and exclusive private villas next to the golf course, with 24-hour services for owners," the report said.

"The province of Málaga has taken its position as a luxury destination, thanks in particular to its good air links with the rest of Europe, with direct flights to 48 cities outside Europe and almost one hundred European cities, which are the main suppliers of foreign buyers of luxury homes in our country," adds the report.

Marbella and Benahavis are the most sought-after areas to buy luxury real estate in the province of Málaga. In these two municipalities, the most attractive places are the Golden Mile of Marbella and the La Zagaleta complex. However, there are also other high value areas such as Lomas de Marbella, Puente Romano, Lomas de Rio Verde, Puerto Banus, Las Brisas and Los Monteros in Marbella, and El Madroneal in Benahavis.

At the end of 2022, homes worth more than three million euros accounted for just over 3.5% (almost 2,900 homes) of all real estate sales in Marbella and Benahavis. This figure is up significantly from 2021, when 1,800 properties were sold, which was about 2% of the total.

The study points to the mixed composition of buyers in Marbella: "mainly the wealthiest residents of Madrid; followed by the British, who, despite Brexit, remain loyal to this municipality and account for 20% of purchases by foreigners; as well as the French and northern Europeans." There is a clear trend among buyers from Madrid related to the Covid-19 pandemic: "These buyers used to spend their vacations and many weekends a year in Marbella. Now, however, many of them have established their permanent residence in Marbella and travel to Madrid only occasionally for business meetings." The study notes that since the pandemic, "new behavioral patterns have become widespread regarding the use of two or three residences, if not more." "With the rise of remote working, it's becoming more and more normalized that it's relatively common for the super-rich to have residences in different places around the world where they can visit seasonally. Mobility and adaptability are now their new watchwords," adds the report.

Spain ranks fourth in the world (after the US, UK and Australia) for UHNWI (individuals with an extremely high net worth of more than US$30 million) investment in the luxury real estate market. "The luxury real estate market in Spain is experiencing significant growth and more and more high-net-worth individuals are deciding to invest in it," says Eva Peribañez, director of the art and private clients division of Hiscox Spain. Prices in the country's luxury real estate market have increased by 10-20% over the past two years, and the insurance company believes they will remain stable in the future. Spain currently ranks fourth in the world (after the US, UK and Australia) for UHNWI investment in the luxury real estate market. "The results of the report confirm our perception of a marked increase in this type of customer in Spain. And this is accompanied by a generational shift, as in just a few years, in 2025, millennials and generation Z will represent 60% of the luxury market," says David Heras, CEO of Hiscox Spain. Hiscox expects the luxury real estate market to continue to thrive. "Due to the reduced need for financing by buyers, the increase in interest rates is not affecting the average price of luxury homes at this time, nor is it slowing interest in buying, as a large number of transactions are taking place without the need to apply for financing," explains the report. "In terms of the economic scenario we are in, where various experts are predicting a new period of economic recession, exclusive homes are becoming increasingly attractive as an investment due to their quality of shelter, and we will see people with high purchasing power taking a defensive stance by purchasing luxury real estate in certain locations. "