The UNO urbanization, on the beachfront in Marbella (Málaga; 150,725 inhabitants), is made up of fifty apartments and villas. They have a price that reaches 10 million euros, but there is nothing left free. Everything is sold before the complex has even been built. A few meters away, half of the 92 homes promoted by Sierra Blanca and designed by Dolce&Gabbana are also sold out, with prices between 4 and 15 million, despite the fact that the earthworks where they will be built have barely begun.
“It’s crazy,” says Javier Nieto, founder and CEO of Pure Living Properties, of the incredible effervescence. And the Costa del Sol is no exception: it is also booming in areas such as the Balearic Islands, Madrid or Catalonia. “It has been a hectic year,” confirms Jordi Carbonell, director of Engel & Völkers Barcelona, who refers to 2024 in which the company’s sales turnover has grown by 37%.
In the midst of the housing access crisis, luxury does not even flinch. If the sale of apartments —— does not stop growing in a good part of the country, the situation is more extreme among houses whose value is in the millions. They reflect this as the 2024 Real Estate Market Report prepared by the Lucas Fox agency. The document indicates that the supply of the premium market – considered as that of homes with prices exceeding 2.5 million – has grown by 7% in the last year in Spain, with Málaga and Mallorca accounting for 57% of the total, followed by Madrid (9%) and Barcelona and Ibiza (7%). And it is a trend that will continue. In its forecasts for 2025, the consulting firm Knight Frank assures that in both Madrid and Marbella prime market prices will grow by 5% more during 2025—a figure that places them at the top of all of Europe, only below Stockholm (Sweden). with 6%—due to the high international demand in both destinations, which is also noticeable in areas
Emirati money
That the first European adventure of Modon Holding, based in the United Arab Emirates, was the purchase of the luxurious La Zagaleta urbanization in Marbella is no coincidence. The operation reinforces the image of the Costa del Sol as a luxury residential destination, with mansions that reach astronomical figures, such as the 23.5 million euro one recently sold there by the 3SA Estate agency, according to data provided by its founder, Jimmy Widen.
The market is very agitated in the golden triangle formed by Marbella, Benahavís and Estepona, which “continues to consolidate itself as a preferred destination for high-level international buyers”, whose demand is growing “constantly”, as stated by Artur Loginov, executive director of Drumelia. This real estate agency sold up to 62 homes in the area in 2024 for a total value of 236 million euros.
The majority are second-hand homes, but sales are growing in first-hand villas – with a more limited supply -, especially in projects well located near the sea, a rarity on the Costa del Sol coastline, full of concrete. In one of those few plots, near Puente Romano, the Jamsa Group is developing the UNO urbanization, whose fifty homes, with an average price of between four and six million euros, have already been sold. The good health of the prime market in privileged locations is also confirmed by the landing of so-called branded residences, developments accompanied by renowned brands such as Karl Lagerfeld, Fendi Casa, Four Seasons or Elie Saab. Also Dolce&Gabbana, a project developed by Sierra Blanca Estates, which has already sold more than half of the properties to VIP clients – the official marketing has not yet started -, despite the fact that there are penthouses that exceed 20 million and that the buildings are still without lifting. “It has generated unprecedented interest,” reveals Carlos Rodríguez, its CEO.
The buyer profile is increasingly younger. And it has gone from retirees who came to enjoy the climate to young entrepreneurs and executives in the technology sector. Marbella is a market where mortgages are also scarce. According to Panorama Properties, more than 90% of home purchases worth more than two million are made in cash.
British, Dutch, Polish and Arab are some of the main luxury markets. Also North Americans, who are increasingly paying attention to corners like the Balearic Islands. Marcel Remus, a 38-year-old German agent who has run the real estate agency that bears his name since 2007, already has several visits scheduled in 2025 in Mallorca. “Germans, Swiss and Austrians continue to come. ”says Remus, who in 2024 has sold houses worth 90 million and still has two more sales pending from the notary. “There are those who prefer to buy a good home with sea views here than an eight-story block in Germany. The island is a much better place to invest,” says the expert, who gets many clients through Instagram.
The climate, restaurants and safety are arguments in favor of Marbella or Mallorca, although the key is the Mediterranean. It is a factor that, however, no longer penalizes places like Madrid. “We do not compete, rather we complement each other. “Whoever has a luxury home here will generally also have it in La Zagaleta or places like that,” underlines Ana White, director of Premium Properties at the consulting firm Knight Frank Spain. According to their reports, the capital is growing and consolidating itself in the most exclusive sector of the real estate market. “We are no longer the cheap city of Europe but a competitive place that offers everything people are looking for now. Madrid is very cool and it is on par with any city in Europe, but with a higher quality of life,” insists White.
Connectivity by air, heritage, the existence of international schools or exclusive leisure possibilities are some elements that link Madrid with Barcelona, which continues “as one of the most sought-after destinations in Europe for buyers with high purchasing power,” according to François Carriere, CEO of Coldwell Banker Spain. Carriere highlights the constant increase in prices and the “high competition between buyers” in areas such as Eixample, Pedralbes or Sarrià-Sant Gervasi.
