The Costa del Sol is a consolidated property market, with second-home buyers (Spanish and foreign) and relocators having a solid hold on the area. Sales levels last year were well above those recorded pre-pandemic, and prices continue to rise – new-builds will experience particularly high spikes as construction costs rise.
A look at mortgage figures also shows that 2021 was a busy year, with the total value of loans to buyers in the Malaga province being the highest since 2008. The same trend appears set to continue this year, as mortgage loan applications are already at a record high.
Interestingly, the majority of property sales on the Costa del Sol are made up of resales (properties that have previously been owned) and not new builds. This is due to the scarcity of affordable new property in areas with a strong demand, such as Torremolinos and Fuengirola. Buyers are often looking for comforts such as communal gardens, sports areas and home automation systems – all of which contribute to the rising prices in these towns.
Property investment on the Costa del Sol is a wise move, as it offers excellent rental yields all year round. Buying and renting a villa in the Mijas Costa, Marbella or Estepona is especially lucrative for foreign investors, as they can apply for a Golden Visa with a minimum investment of EUR500,000. However, it is essential to understand what kind of property you are considering and your financial constraints before making any decisions. property sales costa del sol