The Costa del Sol's property market is expected to remain strong in 2022, with steady growth in real estate values.
However, the market is currently facing a few challenges, such as rising interest rates. Despite these issues, the area is still a desirable place to invest in property, offering potential buyers a unique combination of stunning Mediterranean weather, excellent infrastructure, and proximity to key airports, making it a great place to invest. There is still a lot of interest in purchasing a home in the Málaga area.
According to data issued by Tinsa, the leading property assessment business in Spain, home values in the province increased by 8% over the same period last year. Marbella had increased by 5.9%, and Malaga by 6.9%.
When compared to the same period in 2021, mortgage loans in Malaga were signed for 22% more between January and July 2022, according to Spain's Institute of National Statistics.
But what else might contribute to price increases? Location, location, location is one of the key factors. Look at places like Marbella, Estepona, Mijas, and Benalmadena.
Estepona is currently popular due to the “New Golden Mile,” where many new homes are being constructed.
In the first half of the year, the Association of Architects in Malaga approved 2,987 new construction projects, a 22% increase from 2021. A greater number of new development projects were approved on the Costa del Sol during this time, including 37 in Marbella, 48 in Benahavis, 39 in Mijas, 27 in Benalmádena, and 23 in Estepona.
There are now no indications that the demand from abroad is waning, but it has to be seen what influence external variables will have on the market.