Published in Market trends
Malaga leads the prime real estate market in Spain
Malaga is consolidating its position as a leading luxury real estate destination in Spain, with growing international demand and a market that is continuing to expand.
- Blog
- Articles
- Market trends
- Malaga leads the prime real estate...
The luxury real estate market in Spain has a new benchmark: Malaga. The Costa del Sol has established itself as the province with the highest concentration of prime properties in the country, according to the latest Spanish Real Estate Market Report by Lucas Fox. With 30% of the national supply of properties over 2.5 million euros, Malaga surpasses other popular destinations such as Majorca (27%) and Madrid (9%).
The rise of new developments and international appeal
Currently, the luxury segment represents 10% of the total real estate offer in the area, driven largely by the development of exclusive new residential complexes such as Be Grand Limonar, La Térmica Beach or Málaga Towers. Lucas Fox has recently closed the sale of a flat in Málaga Towers valued at almost 3 million euros, reflecting the growing demand for properties of this quality.
International interest is key to the region’s growth. Some 64% of buyers of prime property in Málaga come from the EU, while 21% are from North America, reaffirming the region's global appeal. Reasons for buying vary, with 57% looking for a second home, 29% for their main residence and 7% to make an investment.
Positive outlook but supply issues
Despite the boom, the shortage of new construction remains a drag on the market. Demand outstrips supply, which has driven an average 5% increase in prices in the first half of 2024. ‘The luxury segment is growing, especially in Malaga, because it has exceptional conditions and is a very attractive area for international clients,’ states Rodolfo Nuñez, Director of Lucas Fox Malaga. ‘It is essential to promote new construction to meet demand and allow the market to continue growing, which is very positive for the local economy and to continue promoting the Spain brand.
Malaga vs. other luxury destinations in Spain
Although Malaga has the largest percentage of the prime market, other destinations also stand out for their offer in the luxury segment:
Mallorca: 27% of prime supply in Spain, with areas such as Son Vida and Port d'Andratx attracting international buyers.
Madrid: 9% of the luxury market, with areas such as La Moraleja and Barrio de Salamanca in high demand.
Barcelona: 7%, where Eixample and Sarrià-Sant Gervasi are the main options for high net worth buyers.
Ibiza: 6%, with exclusive properties in Cala Jondal and Santa Gertrudis
Conclusion
Malaga has established itself as a benchmark for luxury real estate in Spain. Its combination of quality of life, cultural and gastronomic offer, and growing international interest have made the Costa del Sol one of the most attractive options for buyers and investors. However, the sector faces the challenge of balancing supply and demand, with the need to boost the construction of new developments that continue to respond to the dynamism of this expanding market.
