Skyrocketing Rental Prices in Marbella’s Real Estate Market for 2024


Marbella Continues to Shine as the Top Luxury Real Estate Destination in 2024

With its pristine beaches, world-class golf courses, and vibrant lifestyle, Marbella remains the top choice for luxury property seekers worldwide in 2024. The demand for high-end real estate continues to surge, fueled by the region’s stunning landscapes and exceptional climate.

Soaring Property Prices in Malaga Province

The property market in Malaga province is experiencing unprecedented growth. Both rental and sale prices are breaking records month after month. For instance, renting an apartment in the province is now, on average, 520 euros more expensive per month than at the beginning of the pandemic and more than double what it was a decade ago.

Factors Driving Price Increases

The COVID-19 pandemic significantly impacted everyone globally. According to the UN, 14.9 million people died worldwide between 2020 and 2021. As we recover from the pandemic, there’s been a substantial shift in mental and professional landscapes. Remote work has become widespread, and there’s a growing desire to enjoy life more fully, evidenced by an increase in outdoor activities and a tourism boom.

Marbella has seen the highest rental price increases over the past decade.

Two significant factors in Malaga that influence the real estate market are the influx of domestic and international companies, attracting more Spanish and foreign talent. Thousands of professionals have moved to the province, and the housing supply hasn’t kept pace with the demand, driving prices up.

Additionally, the Costa del Sol is a hotspot for vacationers. Last year, Malaga welcomed a record number of tourists, with over 22 million people passing through the airport. Short-term rentals remain more profitable and less problematic (usually paid in advance) than long-term leases, indicating a need for more monthly or yearly rental options.

Statistical Insights

In May last year, the average price per square meter in Malaga province was 14.8 euros – an all-time high – compared to 9.6 euros in March 2020 (when Spain officially declared the pandemic) and 6.4 euros in May 2014, a decade ago.

Positive Impact on Tourist Apartments

Malaga has surpassed the 12,000 mark in tourist apartments despite new restrictions. The current average monthly cost for a 100-square-meter property is 1480 euros, compared to 960 euros in March 2020 and 640 euros in May 2014. This monthly rate exceeds the salary of many Malaga residents.

Idealista Price Analysis

Idealista provides monthly, quarterly, and yearly comparative information for different municipalities in Malaga. Most show green, indicating rising costs. Almost all areas exceed 10 euros/m2, with Marbella being the most expensive at 17.7 euros. Estepona and Benahavís follow at 16.6 euros/m2 and 16 euros/m2, respectively. Torremolinos and Benalmádena surpass 15 euros/m2, while Malaga City is at 14.2 euros/m2, Fuengirola at 13.9 euros/m2, Mijas at 13.2 euros/m2, Rincón at 11.2 euros/m2, and Vélez Málaga averages 8.5 euros per square meter.

Housing Affordability Challenges

Renting can be nearly impossible for those with average incomes, requiring at least two incomes for a couple to afford a rental. Additionally, landlords frequently update rental prices, creating further challenges for tenants.

Purchasing Real Estate

If you opt to buy, similar trends apply. According to Fotocasa, Malaga was the second Spanish province with the highest annual price increase in May, rising by 21.9% to 3600 euros per square meter.

Conclusion

Marbella’s real estate market continues to thrive in 2024, offering ample opportunities for luxury living and investment. With its unmatched lifestyle, beautiful properties, and dynamic market conditions, Marbella remains the ultimate destination for those seeking the perfect Mediterranean life and a valuable investment.