Savills Aquire Newman says that the average price of a single-family comes exceeds 3,000 euros per meter.

The luxury real estate segment on the Costa del Sol expands through the diversification of formats in new municipalities. For the first time in years areas specialising in multi-family construction are started to build single-family homes as well as multi-family “super luxury” residences.

The new concept of multi-family super luxury promotions is concentrated in urbanisations such as Finca Cortesin, with the Las Albercas project, or in very specific locations in Marbella and Estepona, such as UBY Hills and Arc Beach on the beachfront. We are also seeing branded residences starting to appear on the coast.

During 2019, the single-family home concentrated almost all the activity in prime or luxury projects. Of the 1,468 single-family homes in commercialisation on the Costa del Sol, the new developments are concentrated in Marbella, Mijas Costa and Estepona (26%, 23% & 16%, respectively), municipalities.

The average price of new multi-family housing on the Costa del Sol stood at 2,494 euros per meter, according to the Costa del Sol 2019 report by Savills. In the case of single-family homes, the average price was 3,008 euros per meter.

As for the new-built-single-family homes, Casares is the town that is in first position with an average price of 7,005 euros per meter followed by Estepona with 3,683 euros per meter and Marbella with 3,087 euros per meter. The trend is clear, towards prime multi-family housing, particularly abandoning multi-family housing to respond to this increasingly wide-ranging demand.

Prices will rise 5%

According to Savills, there will be a moderate price growth of between 3% and 5% throughout 2020 on the Costa del Sol. Likewise, some stability is expected in the incorporation of new projects, in line with moderation of the demand, both for main and second residence homes.