Real Estate Market Analysis for 2024
Marbella Continues to Shine as the Top Luxury Real Estate Destination in 2024
With its pristine beaches, world-class golf courses, and vibrant lifestyle, Marbella remains the top choice for luxury property seekers worldwide in 2024. The demand for high-end real estate continues to surge, fueled by the region’s stunning landscapes and exceptional climate.
Soaring Property Prices in Malaga Province
The property market in Malaga province is experiencing unprecedented growth. Both rental and sale prices are breaking records month after month. For instance, renting an apartment in the province is now, on average, 520 euros more expensive per month than at the beginning of the pandemic and more than double what it was a decade ago. From personal experience, my two sons now both live in Malaga city renting their own apartments. When my first son started renting in 2020, he was paying 800€ per month for a 2 bedroom apartment in the city. When my second son started living there this year (2024), the price of a 2 bedroom apartment is now 1.200€ for basically the same thing!!
Factors Driving Price Increases
The COVID-19 pandemic significantly impacted everyone globally. According to the UN, 14.9 million people died worldwide between 2020 and 2021. As we recover from the pandemic, there’s been a substantial shift in mental and professional landscapes. Remote work has become widespread, and there’s a growing desire to enjoy life more fully, evidenced by an increase in outdoor activities and a tourism boom.
Marbella has seen the highest rental price increases over the past decade.
Two significant factors in Malaga that influence the real estate market are the influx of domestic and international companies, attracting more Spanish and foreign talent. Thousands of professionals have moved to the province, and the housing supply hasn’t kept pace with the demand, driving prices up.
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Additionally, the Costa del Sol is a hotspot for holidaymakers. Last year, Malaga welcomed a record number of tourists, with over 22 million people passing through the airport. Short-term rentals remain more profitable and less problematic (usually paid in advance) than long-term leases, indicating a need for more monthly or yearly rental options.
Statistical Insights
In May last year, the average price per square meter in Malaga province was 14.8 euros – an all-time high – compared to 9.6 euros in March 2020 (when Spain officially declared the pandemic) and 6.4 euros in May 2014, a decade ago.
Positive Impact on Tourist Apartments
Malaga has surpassed the 12,000 mark in tourist apartments despite new restrictions. The current average monthly cost for a 100-square-meter property is 1480 euros, compared to 960 euros in March 2020 and 640 euros in May 2014. This monthly rate exceeds the salary of many Malaga residents.
Housing Affordability Challenges
Renting can be nearly impossible for those with average incomes, requiring at least two incomes for a couple to afford a rental. Additionally, landlords frequently update rental prices, creating further challenges for tenants.
Purchasing Real Estate
If you opt to buy, similar trends apply. According to Fotocasa, Malaga was the second Spanish province with the highest annual price increase in May, rising by 21.9% to 3600 euros per square meter.
Conclusion
Marbella’s real estate market continues to thrive in 2024, offering ample opportunities for luxury living and investment. With its unmatched lifestyle, beautiful properties, and dynamic market conditions, Marbella remains the ultimate destination for those seeking the perfect Mediterranean life and a valuable investment.
However, for those investors looking to profit from the short term holiday rentals industry, I would council caution. There is currently a decided reaction to “AirBnB” holiday rentals as many locals feel that this is the reason for the sharp increase in rental prices and indeed some areas have started enacting laws to prohibit short term rentals (this has happened in Mallorca and Barcelona, but other areas are also considering enacting these laws).