The real estate market in 2024 is thriving, showcasing a remarkable blend of rising property prices and a significant increase in transactions. These favorable conditions have fueled a 9.6% rise in the incorporation of new real estate companies as of August 2024. This growth outpaces the average across industries, underscoring the dynamic potential of a sector where investment meets opportunity.

• Table of contents
• Key trends driving the real estate market in 2024
• Regional leaders in the real estate boom
• Golden Visas and construction approvals: Indicators of sustained growth
• Real estate’s promising horizon
• Marbella: A hub for global investment
• Real estate as an economic cornerstone

A combination of booming sales and steadily climbing property values has created an environment ripe for innovation and business growth in the real estate sector. Gesvalt’s latest report highlights a 13.17% surge in companies focusing on real estate activities, while construction-related businesses expanded by a steady 4.99%.

The growth trajectory is particularly notable in August 2024, where new company formations rose by 10.84% compared to the previous year, further illustrating the market's vitality.

Investment flows reflect this momentum, with the real estate and construction sectors moving a staggering €1.135 billion in the first half of the year, marking a 36% year-on-year increase. Despite a 6.9% rise in property prices, transaction volumes continue to climb. The period saw 299,223 property sales, reflecting a 3.3% increase compared to 2023, driven largely by favorable conditions such as the drop in the Euribor.

The real estate market’s growth is unevenly distributed across Spain, with certain regions emerging as key players. Andalusia, the Valencian Community, and Catalonia collectively account for over 50% of all property transactions, solidifying their positions as dominant hubs.

International buyers also play a pivotal role, contributing 18.5% of total transactions nationwide and exceeding 30% in high-demand regions. Key areas include:

• Balearic Islands: 36.8% of transactions
• Valencian Community: 36%
• Canary Islands: 34.6%

These statistics highlight the magnetic appeal of Spain’s property market for foreign investors, bolstered further by the advantages of Golden Visas, which offer residency incentives for high-value property investments.

The allure of Golden Visas continues to drive interest from international buyers, directly impacting the construction sector. According to Gesvalt, construction management approvals have risen by 14.8% year-on-year as of May 2024. Similarly, end-of-construction certifications show a 14.7% increase, reflecting a robust pipeline of new developments catering to growing demand.

Key regions leading in construction activity include:

• Community of Madrid: 25.84% of certifications
• Andalusia: 21.22%
• Catalonia: 13.87%

In terms of construction management approvals, Andalusia holds the top spot with 20.8% of the national total, followed by Madrid (17.9%) and the Valencian Community (10%).

The current sales boom, rising levels of investment, and the international appeal of Golden Visas collectively highlight a vibrant and promising future for Spain's real estate market. This dynamic expansion not only addresses the growing demand for high-quality properties but also contributes to the ongoing transformation of the nation’s property ecosystem into a global benchmark.

For both businesses and investors, these trends represent a plethora of opportunities. From capitalizing on the burgeoning market of international buyers to leveraging regional hotspots like Andalusia, Catalonia, and the Balearic Islands, the real estate sector in 2024 is fertile ground for innovation, development, and long-term profitability.

One standout example of this evolving landscape is the arrival of The Agency Marbella, the Marbella branch of the renowned American luxury real estate brand, which opened its doors in late 2023. This bold move aligns perfectly with the current wave of new real estate companies entering the Spanish market, further cementing Marbella's status as a hotspot for luxury living.

Founded by Mauricio Umansky, a high-profile real estate entrepreneur and a star of Netflix’s hit series Buying Beverly Hills, The Agency has redefined the concept of real estate through a blend of boutique service and global reach. With its origins in Beverly Hills, the company has expanded into numerous international markets, leveraging its expertise in high-net-worth transactions and luxury property marketing. The Marbella office aims to bring this same level of excellence, combining intimate knowledge of the Costa del Sol with a powerful international network of buyers and sellers.

"Marbella represents the perfect blend of opportunity and lifestyle. The city’s unique appeal as a global luxury destination aligns seamlessly with The Agency’s ethos of providing a tailored, high-end real estate experience. Marbella’s dynamic market and its continuous influx of international buyers made it a natural choice for us to expand our global footprint. Our goal is to elevate the real estate experience here, blending local expertise with our signature boutique approach.", stated Leif Orthmann, Managing Partner of The Agency Marbella,

The entry of globally recognized brands like The Agency underscores the increasingly international nature of Spain's real estate market. Marbella, in particular, has become a magnet for high-end buyers, from wealthy European retirees to younger, affluent professionals seeking the Mediterranean lifestyle. This global influx continues to push demand for luxury properties, creating a ripple effect of growth throughout the sector.

Reflecting on the market’s potential, Benjamin Beza, Director of Sales at The Agency Marbella, added:
"The opportunities in Marbella are exceptional. From beachfront villas to exclusive developments in Nueva Andalucía and Sierra Blanca, this market attracts a diverse clientele, including international investors, high-net-worth individuals, and families seeking a luxury Mediterranean lifestyle. Marbella is not just a destination; it’s a global hub for premium real estate. With rising demand for sustainable and innovative properties, we see tremendous growth potential in catering to this discerning client base."

The opening of The Agency Marbella underscores the growing international interest in Marbella as a key player in Spain’s real estate boom. The region’s unmatched combination of natural beauty, lifestyle appeal, and prime investment opportunities has positioned it as a top choice for high-end buyers from across the globe.

Foreign investors, in particular, play a pivotal role in driving demand, with international buyers accounting for over 30% of transactions in high-activity regions like the Balearic Islands, the Valencian Community, and Marbella itself. Programs like Golden Visas continue to attract high-net-worth individuals, further bolstering the region’s appeal.

With property sales, company formations, and construction approvals all experiencing significant growth, Spain’s real estate market has established itself as a critical driver of the country’s economic expansion. The surge in ventures like The Agency Marbella exemplifies the sector’s capacity to attract global players and adapt to evolving market demands.

As Orthmann and Beza emphasized, Marbella’s evolving market caters to a diverse and sophisticated clientele, making it a hub for innovation and premium real estate. These dynamics position Marbella as not just a key player in Spain’s property landscape but also a trendsetter on the global stage.

For those looking to invest or expand in 2024, the Spanish property market offers not just a chance to participate in a sales boom, but also the opportunity to shape the next era of real estate on an international scale