New Report: Luxury Real Estate in Malaga Central in Spain

Luxury real estate in Malaga has established itself as the new centre for premium housing in Spain, according to a recent study. The city has the highest percentage of luxury properties, accounting for 30% of homes over €2.5 million. In comparison, Mallorca, Madrid and Barcelona contribute 27%, 9% and 7% to the luxury housing market respectively. According to a recent report by Lucas Fox, the luxury segment now accounts for 10% of total property listings in Malaga. This includes prestigious projects such as Be Grand Limonar, La Térmica Beach and Malaga Towers.

Remarkable sales figures

Sales of apartments in the luxury Malaga Towers development are approaching €3 million, confirming the city’s status as a luxury property destination in Malaga and worldwide. Lucas Fox Malaga Director Rodolfo Núñez highlights the growth of the luxury segment. Malaga’s appeal is strong for international clients seeking unique experiences and an exclusive lifestyle. Nearly 57% of high net worth buyers purchase luxury properties as second homes.

Attractiveness of the Costa del Sol

The temperate climate, vibrant culture and gastronomy continue to attract foreign interest. However, the region faces challenges due to limited new construction. This has led to a rise in property prices of around 5% in the first half of 2024. The limited construction could put pressure on future growth. Stimulating new construction is crucial to meet the demand for luxury real estate in Malaga and support local economic growth.

Increase in foreign investors

Analysts point to the increasing number of foreign investors in luxury real estate in Malaga. About 32.35% of real estate transactions involve foreign buyers. Malaga’s appeal lies in its diverse housing options and lifestyle that appeals to buyers from the European Union and North America. The Malaga Towers development offers exclusive amenities such as panoramic views, fitness centers and co-working spaces.

Future of the real estate market

Despite Malaga’s leading position, the city lags behind other provinces in terms of total transactions. With 35,211 homes sold last year, the province is fifth nationally. However, Malaga is third in terms of new sales with 10,777 new homes, an increase of 63.2% compared to last year.

The future of luxury real estate in Malaga looks bright, provided the challenges of limited new construction are addressed. The region is a favorite location for wealthy investors looking for luxury homes and short-term rentals. Entrepreneurs and professionals from Northern Europe are increasingly attracted by the optimal living conditions. If construction can keep up with the pace of demand for luxury real estate in Malaga, the city will retain its title as the center of luxury real estate in Spain.

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