The Marbella Property Market Report 2024 by Panorama provides a comprehensive analysis of the current real estate landscape in the southern Spanish coastal city. Here are the key highlights:
Marbella's status as a luxury destination
- Marbella has solidified its position among the world's top ultra-luxury resort destinations.
- Named "Best Overall Destination" by European Best Destinations in 2024.
- High-end amenities, world-class dining, and luxury brands have become staples of the area.
- Year-round sunshine, stunning scenery, and a welcoming international community continue to attract residents and visitors.
- Marbella's updated census data from January 2024 shows 165,871 registered inhabitants, with almost a third being foreigners from 153 countries.
- The "floating population" adds another 100,000 people in winter, expanding to at least three times that figure in summer months.
Marbella Club Hills, Benahavís
Strong market demands and pricing trends
- Property sales in 2023 exceeded pre-pandemic levels by 24.55%.
- Average asking prices increased by 13.7% from June 2023 to June 2024, reaching €4,812/m².
- Limited supply and growing demand are driving prices upward, particularly in prime locations.
- The stock of properties for sale in Marbella dropped by 9.03% from Q2 2023 to Q2 2024.
- Despite price increases, Marbella remains competitive, ranking 13th in Knight Frank's 2024 Wealth Report.
- In Marbella, Estepona, and Benahavís, total sales in 2023 were 8,243, with 708 new properties and 7,535 resales.
- Luxury apartment prices start at €6,000/m² and can exceed €30,000/m² in prime beachfront areas of the Golden Mile.
- New or refurbished villas start from €8,000/m² and can reach €14,000/m².
International buyers dominate the market
- British, Dutch, and Swedish nationals are the top foreign buyers in the Málaga province.
- International buyers represented 33.7% of total property acquisitions in 2023.
- Growing interest from North American and Middle Eastern buyers in the luxury market.
- British investment in Marbella's real estate sector has grown by an average of 20% over the past two years.
- Visitors aged 35-50 from the US, Canada, and the Middle East are increasingly renting and buying high-end properties.
- Middle Eastern tourists from the UAE, Saudi Arabia, Qatar, and Kuwait increased by 10% in 2023.
Marbella Club Golf Resort, Benahavís
Tourist boom
- Spain welcomed over 85 million tourists in 2023, its best year ever, 2% more than pre-pandemic 2019.
- January to May 2024 saw a 13.6% increase in tourists compared to 2023, reaching around 33 million.
- The Costa del Sol celebrated 2023 as "the best tourist year" in its history, with 14 million tourists.
- 2024 is setting new records with an 18% increase in the first four months compared to 2023.
- Málaga airport saw a significant increase in passengers, exceeding 11 million in the first six months of 2024.
Rental market trends
- Significant price increases in the long-term rental market across all segments.
- New regulations (Decreto 31/2024) introduced for short-term tourist rentals.
- 6,991 registered tourist residences, comprising 6.9% of total homes in Marbella.
- Municipal governments can now limit or prohibit short-term touristic rentals, although this is unlikely for now in Marbella.
- By February 2025, new requirements for short-term rentals include air-conditioning, kitchen equipment standards, and bedroom specifications.
- 21.52% increase from July 2023 in rental properties in Benahavís. Read more about the lucrative rental market in Benahavís.
The view of the Rock of Gibraltar from Marbella Club Hills, Benahavís
Urban planning and sustainability
- Marbella reported record-breaking economic figures for 2023, with over 80,000 contributors to Social Security.
- The city foresees an investment of over €800 million in major construction licenses in 2024.
- Municipal budget for 2024 increased by 10%, with projected revenues of €373 million.
- Infrastructure improvements are underway, including efforts to reduce traffic congestion and plans for extending the coastal train service.
- Strong focus on sustainable growth and preserving Marbella's character as a "Garden City."
- The new General Plan (PGOM) is set for final approval in 2025, replacing the outdated 1986 plan.
Challenges and Future Outlook
- Water scarcity has been addressed with expanded desalination plant capacity and well rehabilitation.
- The desalination plant will provide 20% of the entire Costa del Sol's water needs when fully operational.
- €348.6 million has been committed to improve water supply infrastructure.
- The city is working on improving services and infrastructure to keep pace with growth.
- Despite global economic uncertainties, confidence in Marbella's future is at an all-time high.
Marbella Club Hills, Benahavís
Marbella's property market is poised for a sustained period of exceptional growth, driven by its solidified status as a premier luxury destination, strong international demand, and ongoing infrastructure improvements. The city's commitment to sustainable development, quality of life enhancements, and strategic planning suggests a bright future for both residents and investors.
As Christopher Clover, the author of the report, notes, "Quality of life is what really matters to us all... and of course, quality properties are an essential ingredient of the formula."
Marbella continues to offer a unique blend of these elements, making it an increasingly attractive option for those seeking a slice of Mediterranean paradise.
You can read the full report here.
See the collection of our penthouses, first-floor apartments and duplex garden apartments. Phase I has been delivered and sold out. Phase II construction is under way.
