Málaga and Costa del Sol lead the market for ultra-luxury real estate in Spain

Half of all luxury homes in Spain are located in Málaga, and the most expensive area to live was Los Monteros in Marbella.

According to a report on the luxury real estate market in Spain, prepared by the insurance company Hiscox, there are 2,500 homes for sale in the province of Malaga with a value of more than three million euros. This represents 34% of the total number of luxury homes in Spain and puts Málaga at the top of the list. Most of these properties are located in the so-called "golden triangle" formed by Benahavis, Estepona and Marbella.

Los Monterosin Marbella, where the price per square meter reaches 6842 euros, which corresponds to villas worth up to 17 million euros, is the most expensive area to live in the province.Lomas de Marbella-Puente RomanoWith an average price of 6173 euros per square meter and a maximum price of 35 million euros per house is the second most expensive housing in Málaga.

Next up in Spain areBalearic Islandswhere 33% of the total number of luxury homes are located, followed byMadridwith 10% andBarcelonawith 6%.La Zagaleta,Puerto BanúsandCortés' FarmAlthough it is not in the "top" for price ratings, the report mentions the luxurious residential development of La Zagaleta as "the most exclusive in Europe." "It is located near the sea and nature and offers a wide range of services, from a helipad and equestrian center to nanny, chef, and driver services," the report states. Its homes are valued between three and 30 million euros, with an average price per square meter of 5,804 euros and an average size of 1,000 square meters. Most of the homes in this area are owned by foreigners from the UK, Germany, Scandinavia, Russia, and Arabia.

The report also mentions other areas in Marbella, such asPuerto Banúswith a price of 5240 euros per square meter and a maximum price of 15 million euros per property, as well asLas Brisaswith an average price of 5,140 euros per square meter and a maximum price of 14 million euros. The report also mentions a little-known area.Cortés' FarmLocated in Casares, between Sotogrande and Marbella. "For many years, it has been recognized as the best golf resort in Europe. This 215-hectare area features a large luxury hotel and exclusive private villas next to the golf course, where owners have access to services around the clock," the report states.

“The province of Malaga has earned a reputation as a luxurious destination, particularly due to its good air connections with the rest of Europe, with direct flights to 48 cities outside of Europe and nearly a hundred European cities that are major suppliers of foreign buyers of luxury real estate in our country,” the report adds.

Marbella and Benahavís are the most sought-after areas for purchasing luxury real estate in the province of Málaga. Within these two municipalities, the best locations include the Golden Mile in Marbella and the La Zagaleta development. However, there are also other high-value areas such as Lomas de Marbella, Puente Romano, Lomas de Río Verde, Puerto Banús, Las Brisas, and Los Monteros in Marbella, as well as El Madroñal in Benahavís.

At the end of 2022, homes priced over three million euros accounted for just over 3.5% (almost 2,900 homes) of the total real estate sales in Marbella and Benahavís. This figure has significantly increased compared to 2021, when 1,800 properties were sold, representing about 2% of the total.

As for the current "remaining stock," homes priced over three million euros make up 6% of the total in Marbella and Benahavís.

The change of residence from the second to the first Marbella attracts a diverse range of buyers: "mainly the wealthiest residents of Madrid, followed by the British, who, despite Brexit, have remained loyal to this municipality and account for 20% of foreign purchases, as well as the French and Northern Europeans." Among buyers from Madrid, there is a clear trend related to the Covid-19 pandemic: "Previously, these buyers spent their holidays and many weekends a year in Marbella.

The report states that after the pandemic, "new behavioral patterns have become widespread in terms of using two or three residences, or even more." "With the development of remote work, it is becoming increasingly normal for ultra-wealthy individuals to have residences in multiple locations around the world, which they can visit seasonally. Mobility and adaptability are now their new mantras," the report says.

Spain is the fourth country in the luxury real estate market. "The luxury real estate market in Spain is experiencing significant growth, and more and more high-income individuals are choosing to invest in it," said Eva Peribañez, director of the art and private clients division at Hiscox Spain. Prices in the luxury real estate market in the country have increased by 10-20% over the past two years, and the insurance company believes they will remain stable in the future. Currently, Spain ranks fourth in the world (after the USA, UK, and Australia) in terms of investments from wealthy buyers (Ultra High Net Worth Individuals, those with a net worth exceeding $30 million) in the luxury real estate market. "The results of the report confirm our perception of a significant increase in this type of clientele in Spain. This is accompanied by a generational shift, as in just a few years, by 2025, millennials and Generation Z will make up 60% of the luxury market," said David Heras, CEO of Hiscox Spain. Hiscox expects further growth in the luxury real estate market. "Due to a lower need for financing from buyers, the rise in interest rates is not currently affecting the average price of luxury housing, nor is it slowing interest in purchases, as many transactions are being made without the need for financing," the report explains. "Regarding the economic situation we are in, where various experts predict a new period of economic downturn, exclusive housing is becoming increasingly attractive as an investment due to its ability to serve as a safe haven for capital, and we will see high purchasing power individuals taking defensive positions by acquiring luxury residential properties in certain locations."