Property Sales on the Costa Del Sol Rise in First Quarter of 2021

Amid the turmoil that engulfed Spain last year, one region defied expectations and continued to see brisk activity. The Costa del Sol was the most dynamic market in terms of sales and prices, and the foreign-buyer share reached another record high. This would seem to contradict economic factors, such as high inflation and interest rates, but international demand outweighed them.

During the first quarter of 2021, according to figures published by the Registrars Association, 7,208 properties changed hands in the region. This was a 14.4% quarterly rise and represents a 22% year-on-year increase. The resale market performed particularly well, while new-build sales also recorded strong gains.

The brisk market meant that properties spent very little time on the market. According to property portal Idealista, 20% sold in under a week, 15% took a month and 21% stayed on the market for three months or more. This is significantly better than the national average, where just over a third of homes were on the market for longer than three months.

Prices on the Costa del Sol are increasing again, but they are still far below their peak levels in 2007. According to valuations company Tinsa, they have 25.2 years to reach their highest point of 2007. The market is strongest in Benahavis, where values went up by 9.7%, Sotogrande (up 10.2%) and Marbella (up 7.9%). Prices in these areas rose faster than those in Madrid or Barcelona. This suggests that the Costa del Sol remains a desirable destination for international buyers, especially for those looking for a second home. property sales costa del sol

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