Property Market Costa del Sol 2022 – Analysis and Trends

2022 is on track to become a record year for property transactions on the Costa del Sol. In the first 6 months of this year a total of 21,603 properties were sold, numbers not seen since the last boom.

The statics also confirm a significant increase from the number of properties sold in the same period of the pre-pandemic year 2019, with 15,560 total property transactions.

Property buyers from outside Spain have been representing 30% of all property transactions on the Costa del Sol for years, with the exception 2020. Whilst the British market is currently still the strongest buying group, the number of German, French, Dutch, and Scandinavian buyers increase steadily. With the more of the baby boomer generation nearing retirement age, we expect this number to remain, if not grow in the coming years.

In our market analysis in September 2020 we predicted a shift in demand from lower end holiday apartments to recreational properties and luxury properties. The actual increase has surpassed even our expectations. The number of luxury properties in this price category stood at 250 to 380 per year, increased to an incredible 981 in 2021, 2,65% of the total property transactions.

High demand and low supply

Though prices are still up to 30% below the peak prices in 2007, prices have risen by 12% in the Malaga region, according to Property Portal Idealista. Tinsa provides a more conservative analysis, recoding an 8% increase in the Malaga region.

Particularly properties in desirable areas, large outdoor spaces, panoramic views and close to amenities remain in high demand. An increasing number of property buyers looking for a new home are choosing the option to design and build their own, fully customized villa on the Costa del Sol. With our Domus Designs villa range property buyers and investors have access to a fully managed property service, creating their unique villa.

Is there another property bubble on the Horizon?

Given the high increase in number and value of property transactions, this is a valid question. However, market analysists confirm that Spain, including the Costa del Sol is in no such danger. A recent article published by Caixa Bank, analyzing various indicators that may put the property market at risk, shows Spain at the bottom of the list.

Trend for the remainder of 2022 and into 2023

The current financial situation, increased cost of living and higher mortgage costs may put the property purchase for buyers in the lower segment of the market on hold. However, we do not foresee a diminished demand overall, with the searches for properties in the higher end of the market steadily increasing. Overall, we expect the increase in property prices and number of transactions to continue, albeit at a healthier, steady pace.

The Costa del Sol offers an exceptional lifestyle at a lower cost of living and much better property value for money, compared to Northern European countries.

If you are looking for a property on the Costa del Sol, contact an Agent today to start your search. We look forward to finding your dream home on this beautiful coast.