The Marbella property market is breaking new records, with property prices increasing by 72% since August 2019. In August 2024, the average cost per square metre reached €4,972, up from €2,879 five years prior. This growth highlights Marbella’s position as a prime destination for foreign buyers seeking luxury real estate, and the sharp increase signals ongoing high demand for properties in this picturesque part of Spain.
Marbella Property Market: Pre- and Post-Pandemic Overview
In August 2019, Marbella’s property market was already recovering after the 2008 financial crisis. The average price per square metre then was €2,879, showing signs of stability. However, the COVID-19 pandemic, rather than stalling the market, accelerated the demand for homes in Marbella. With many people looking to relocate to less crowded and more lifestyle-friendly locations, property prices rose sharply post-pandemic.
By 2024, the average price had soared by 72%, reaching €4,978 per square metre. This was driven by both domestic demand and a surge of international interest, especially from remote workers and lifestyle-driven buyers.
The 2024 Record: What’s Driving the Surge?
Several key factors are behind the continued rise in property prices:
- International Demand: Marbella’s status as a luxury destination has only grown stronger, attracting affluent international buyers, particularly from the UK, Germany, and Scandinavia. The demand for second homes with premium amenities and privacy has led to a boom in sales, particularly for high-end properties.
- Post-Pandemic Trends: The pandemic reshaped how people value their living spaces. Buyers now prioritise homes with larger outdoor areas, home offices, and wellness amenities. Marbella’s sunny climate and relaxed lifestyle make it an ideal choice for those seeking a new, healthier way of living.
- Low Supply, High Demand: Despite an increase in new property developments, Marbella’s supply has yet to keep up with the overwhelming demand, contributing to the price surge. Property data shows inventory levels in 2024 are still lower than pre-pandemic levels.
Area Breakdown: Where Prices Have Increased the Most
While prices have risen across Marbella, the trends vary by area:
- San Pedro Alcántara: This area saw the most significant price increase, with an average cost of €4,264 per square metre.
- Nagüeles-Milla de Oro: Despite its reputation as one of the most expensive areas, prices here have slightly dipped, with a €10 decrease per square metre from July 2024 to August, averaging €6,298.
- Marbella Centre: Marbella’s town centre remains relatively affordable compared to the luxury zones, with an average price of €4,243 per square metre. However, even this area has seen a steady rise, making it increasingly attractive to buyers.
Comparing Prices: Then vs Now
To put the price growth in perspective:
- 2019 vs 2024: In August 2019, the average price per square metre was €2,879. By August 2024, this has jumped to €4,972, a 72% increase.
- Year-on-Year Growth: From August 2023 to August 2024, the price rose by 14.5%, from €4,342 to €4,972.
For potential buyers, this means that a 50-square-metre apartment now costs €315,000 in Nagüeles-Milla de Oro, whereas a similar property in San Pedro Alcántara would cost €213,000.
Is Now the Right Time to Invest?
Given the impressive growth in Marbella’s property market, now could be a favourable time for foreign buyers to invest. According to market experts, property values will continue their upward trend in the coming years.
The demand for luxury homes is unlikely to wane, and Marbella’s appeal as a prime lifestyle and investment destination remains strong.
However, buyers should be prepared for high competition and rising prices. Engaging with local real estate professionals is advisable to navigate the market and secure the best properties.
Conclusion
Marbella’s property market has transformed dramatically in the past five years, with a 72% increase in property values since 2019. The post-pandemic world has only strengthened demand, especially from international buyers looking for luxury homes and investment opportunities. With prices still climbing, now may be an opportune time to invest in this thriving market.