Price Trend

Like all property markets, the Costa del Sol’s is cyclical. From the highest prices on record in 2007, the market plunged and bottomed out in mid-2015.

Since then, prices have followed a steady upward trend. In Q4 2019, Costa del Sol property prices averaged €1,673 per square metre, 4.6% higher than a year earlier, but still a full 34% below their peak of €2,537 per square metre in Q3 2007.

Fundamentals

In December 2019, the average price for property on the Costa del Sol was €2,202 per square metre, an annual increase of 8.5%. The average in Marbella was €2,998, up 8.7%; €2,214 in Estepona, up 7.2% and €1,946 in Mijas, up 3.3%.

The average resale property cost €199,316 in Q3 2019, up 9.9% in the year.

The average new-build property cost €368,236 in Q3 2019, up 39.6% in the year.

In Q3 2019, the Costa del Sol had the sixth highest property prices in Spain and the second highest price hike. Sales have averaged between 6,946 and 8,730 transactions every quarter since Q1 2017.

In the first half of 2019 (latest figures available), 207 properties valued over €900,000 were sold on the Costa del Sol, up 43.5% on the same period in 2018.

New-build licences on the Costa del Sol went up by 58.5% in the year to Q3 2019.

Predictions 2020 & Beyond

We believe that the Costa del Sol property market presents stability and solid foundations for 2020 and the following years. We base this forecast on the following facts:

Continued Demand

Sales have maintained a steady pace for the last few years, sustained by buyers looking for permanent homes in the area.

Buyer Diversity

While the Costa del Sol remains a honeypot for Northern Europeans, the area is also attracting buyers from destinations such as Poland, Belgium, France and Asia.

Aligned Demand

The area offers premium investment value both in terms of quality of property and location.

Low Interest Rates

The Euribor (mortgage interest rate benchmark) remains in negative territory meaning that lending rates continue to favour the buyer.

Price Growth Capacity

Costa del Sol property remains at well below its peak prices reached in 2007 meaning that there is plenty of margin for growth.