The Agency has landed in southern Spain. They have done so by unveiling the main current and future trends of the luxury real estate market with their first Annual Real Estate Market Report on Marbella and the Costa del Sol. This review confirms the healthy state of the luxury housing market on the Costa del Sol and corroborates the increase in American investors seeking homes and villas as second residences or future investments. 

The report also analyses and contrasts the real estate market situation in Spain, Andalusia, and Marbella. Additionally, it studies the present and future of the rental market and the business of tourist apartments.

Furthermore, it examines all the elements that make Marbella one of the best real estate destinations for American buyers, comparing it to other luxury real estate markets such as New York, Miami, and Los Angeles.

“The Annual Real Estate Market Report on Marbella demonstrates the exceptional opportunities available for American investors. Marbella’s luxury market is thriving, and its allure as a premier destination is only set to grow stronger”, said Leif Orthmann, Managing Partner of The Agency Marbella.

As revealed by the report, American tourism in Spain is booming. Last year, 3.8 million Americans chose Spain as their vacation destination and, according to data from the National Institute of Statistics (INE), in the first two months of 2024, Spain welcomed 337,062 American tourists, a 23.7% increase from last year and a 19% increase from the pre-pandemic year of 2019.

This increase in the influx of American visitors also translates into a growth in spending when they come to Spain, which rose by 50% since 2022 to 8 billion euros. Meanwhile, the average expenditure of American tourists per trip was 2,067 euros, equivalent to 285 euros per day with an average stay of 7.2 nights.

A critical factor for this growth, as noted in the report, is the recovery of direct air routes between Spain and the United States. In 2024, there will be 24 direct routes, the same number as in 2019, connecting 11 American cities with five Spanish ones, including the route between Málaga and New York.

Regarding the relationship of American visitors with the Costa del Sol, the increase in American tourists has been spectacular. Málaga received 174,951 American visitors in 2023, a 26.6% increase from the previous year. The province attracts more than a quarter of American travelers visiting Andalusia and accounts for a third of overnight stays.

Additionally, Málaga airport statistics show that in January 2024 there was a year-on-year increase of 50.9% in the growth of passengers from the United States, second only to Poland (98%). American tourism in Spain, and in the province of Málaga, is booming, with figures pointing to another record year. Improved air connections, traveler optimism, and the appeal of destinations like the Costa del Sol are consolidating Spain as a preferred destination for Americans, benefiting the tourism sector and significantly contributing to the national economy.

In recent years, Marbella has become a primary destination for American buyers and investors. Located in the heart of Spain’s Costa del Sol, Marbella is known for its luxurious lifestyle, cultural richness, and economic stability. As geopolitical tensions persist worldwide, Marbella offers a serene refuge and a safe investment location, attracting wealthy individuals from the United States and other parts of the world.

Nationally, the report indicates that the Spanish real estate market continues to attract international investors, despite a 10% decrease in property purchases by foreigners in the second half of 2023. However, despite the lower number of transactions, property prices have generally held steady. Regarding Americans, strategic locations such as Madrid and coastal areas have been particularly attractive for investors seeking both vacation homes and long-term investments.

Looking ahead, the immediate future holds promising prospects for the industry in 2024. Indeed, the Andalusian real estate market shows solid growth, particularly in rising property prices. High demand and activity levels have led to a 12.3% increase in the price per square meter. In terms of home sales, Andalusia has also exceeded expectations, with a 13.4% increase in transactions. This increase was supported by both national and foreign buyers, consolidating Andalusia’s position as one of the most attractive destinations for real estate investment.

The report considers that foreign investors continue to show strong interest in the Andalusian coast as an investment destination. According to the Property Registrars, foreigners carried out a total of 23,300 transactions in the first quarter of 2024, representing 14.5% of all purchases in the region. British and Russian citizens lead the acquisitions, followed by investors from Germany and France. These investments are mainly directed at tourist areas on the Andalusian coast, with properties aimed at vacation rentals.

Regarding the real estate market prospects in Marbella, the report reveals that housing prices in Marbella have increased by 10% in the last year, with an average price per square meter of €4,533 in February 2024, compared to €4,145 in February 2023. Moreover, in contrast to the national real estate market slowdown, the Costa del Sol presents a more positive outlook.

In terms of areas, the most expensive is Nagüeles-Milla de Oro, with a price of €6,040 per square meter, followed by Nueva Andalucía with €5,050, Marbella East at €4,512, and Río Real-Los Monteros at €4,446. In urban Marbella, the price per square meter is €3,897, while in San Pedro de Alcántara, it is €3,861. The area with the lowest cost per square meter is Elviria-Cabopino with €3,401.

The median price of a home in Marbella is approximately €686,229. Homes of less than 100 square meters average €347,960, while those over 100 square meters cost around €754,052. On average, homes sold in Marbella are 120-square-meter apartments with three bedrooms, located in three-story buildings.

According to the report, Marbella ranks as the 16th most expensive city in the world for luxury residences, ahead of cities like Madrid and Dubai, with Monaco in first place. It is the ninth most expensive municipality in Spain, and the prices of new luxury constructions or renovated apartments in Marbella range from €6,864 to €28,600 per square meter in prime locations like the Golden Mile, sometimes even higher for exclusive properties. The prices of newly built or renovated villas in this area range from €9,151 to €16,008 per square meter.

Regarding the rental market, in Marbella, the average rent per square meter is €15.42 per month, with an average monthly rental value of €2,263 per property. Depending on the size, a studio or one-bedroom apartment rents for approximately €1,642, a two-bedroom home for around €1,960, while a three-bedroom home reaches about €2,710.

The report also compares what can be purchased in the luxury real estate market with one million dollars in Marbella versus other international cities such as Monaco, London, Singapore, Geneva, Los Angeles, or New York. This comparison shows that on the Costa del Sol, one can acquire a 101-square-meter home compared to the 16 square meters in Monaco, 22 in Singapore, or the 34 in London or New York. Thus, Marbella’s competitive position within this spectrum, especially compared to the most expensive cities in the U.S. and other international destinations, makes it an attractive option for buyers seeking substantial value in prime residential properties.

Benjamin Beza, Sales Director of The Agency Marbella, added, “The robust growth in Marbella’s real estate sector highlights the region’s unique appeal. With its luxurious lifestyle, beautiful landscapes, and strong market fundamentals, Marbella is increasingly becoming a top choice for discerning investors from the United States.”

The Agency, the leading American real estate agency specialising in luxury homes and villas, arrives in Marbella to boost the premium real estate segment on the Costa del Sol. The Agency’s success is evident in its expansion to over 115 offices in 12 countries, achieving global sales exceeding 42 billion euros.

The owner of The Agency, Mauricio Umansky, prides himself on being responsible for selling some of the world’s most iconic properties, such as the Playboy Mansion, the Walt Disney Estate, and homes previously owned by Michael Jackson and Michael Jordan. Umansky is a well-known face in the United States for his appearances on shows like “The Real Housewives of Beverly Hills” and his Netflix series “Buying Beverly Hills.”

Now, The Agency lands in Marbella and the Costa del Sol with The Belleside Team – The Agency Marbella, a team of 12 professionals with deep experience in the Costa del Sol real estate market, its particularities, and the needs of foreign and domestic clients seeking exclusive properties in the Golden Triangle.