Marbella on the coast of Spain is Europe's new hot spot

According to a Knight Frank report, Spain's coastal resort area, which includes the towns of Marbella, Benahavis and Estepona, has seen an onslaught of new investment since the pandemic began three years ago. Sales in the three resort towns rose by an average of 20% last year, statistics show.

In addition, sales volumes in Marbella have more than doubled since the pandemic downturn in 2020, according to the Spanish General Council of Notaries. "Marbella is once again in the crosshairs of Northern European buyers looking for a second home in this era of hybrid work," said Mark Harvey, Knight Frank's head of international sales in the report. "This market is one of the most international in Europe, is easily accessible via Malaga and Gibraltar airports, and offers many amenities year-round. In 2022, we have seen demand strengthen by 32% year-on-year. "

Last year saw the return of international buyers, which gave the market a boost.

Now that Spain has launched a digital nomadic visa program, interest in the area could increase further. As of March, non-level EU residents can apply for a visa that allows them to live in the country for up to five years and pay lower taxes, not to exceed 200% of Spain's minimum wage, which is currently about 28,000 euros ($30,469) a year. "The new visa could be a game changer for freelancers, tech startups and entrepreneurs, as well as a fast-growing group of hybrid workers around the world," the report said.

In the meantime, luxury real estate prices in Marbella have risen 7% in 2022 and are now 13% above the pandemic low in 2020, according to the Knight Frank report.