Marbella, a good and solid investment

We already know Marbella is a good investment, not only because it gives you a very high quality of life, but also financially it's a good choice. Marbella has seen a surge in property prices over the past year, making it an attractive option for long-term investment. According to data from Idealista, property prices in Marbella have increased by 19.9% to an all-time high (2022), indicating a strong upward trend that may continue in the future. Furthermore, renting out property in Marbella, whether for long or short-term stays, has proven to be a good investment in recent years, offering a lucrative income stream for investors.

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Marbella Leads the Way in Property Price Increases

Marbella has registered the highest increase of all large Spanish municipalities in the last year. According to Idealista, a property listings website, prices have risen by 19.9%, bringing the average cost to an all-time high of 4,121 euros per square metre.

Other Costa del Sol Towns Also See High Property Price Increases

Mijas and Fuengirola, two other towns on the Costa del Sol, also saw prices rise above 10%, reaching all-time highs. In contrast, Malaga experienced an 8% increase in prices between January 2022 and January 2023.

Idealista Report Includes 16 Provincial Capitals

Idealista included 16 provincial capitals in its report, with Santa Cruz de Tenerife, Alicante, Valencia, Guadalajara, and Cuenca registering double-digit increases in house prices higher than inflation. Palma had the highest average price among these capitals at 3,467 euros per square metre, followed by Seville and Malaga, which reached all-time highs with 2,365 euros per square metre.

Madrid and Barcelona Property Prices Also On The Rise

Madrid's metropolitan area saw an increase in property prices of 4.9%, with nine different locations experiencing increases above inflation, while Barcelona saw increases in the metropolitan area that were not as steep. Alicante also experienced a significant increase in property prices, along with Elche, Torrevieja, and Orihuela.

Some Locations See a Drop in Average House Prices Year-on-Year

Six locations registered a drop in average house prices year-on-year, including Palencia, Zamora, Ceuta, Jaén, León, and Ávila. Ávila and Jaén had some of the cheapest housing prices among these cities at 1,078 euros per square metre and 1,083 euros per square metre, respectively.

Overall Property Price Increases Are Well Above National Average

Overall, with a national increase of 5.4%, the increases in property prices in Marbella, Mijas, Fuengirola, and the other locations mentioned in the report were well above the average year-on-year increase. Cádiz stood out with the capital growing below the CPI, while close-by towns Jerez de la Frontera and Puerto de Santa María grew at twice the rate of inflation, together with Chiclana and San Fernando.