MÁLAGA TRANSFORMING INTO TECH HAVEN—AND NEW HOME HOT SPOT

Another country seeing an increase in U.S. buyers, Spain has reached a record high in American investment, with a recent report stating a 25% increase from 2019 to 2022.

Bruno Rabassa, CEO, Berkshire Hathaway HomeServices Spain, attributes the rise in interest to a wide variety of factors, including the relatively low cost of living, a favorable exchange rate with the U.S. dollar, a world-class transportation infrastructure—Spain’s high-speed rail network is only second to China in terms of size—and a stable political and economic climate.

“Americans are looking to strengthen their retirement dollars,” Rabassa said. “This is a safe and secure place to invest in property. Experts predict this upward trend to continue; in fact, Spain’s property prices have continued to rise steadily over the past years, making it an attractive investment for foreign buyers.”

One particularly exciting area in the country is Málaga, a coastal resort that has long been a favorite destination for European sunseekers.

“Málaga has seen huge growth in the sale of new homes, overtaking Barcelona to the second spot,” Rabassa explained. “New institutions have transformed the city, including the Picasso Museum which is located close to where the painter was born. Property, however, is still more affordable than other Spanish cities. In Málaga, the average price per square meter is €2,600. In Marbella it’s €4,100 and in Madrid and Barcelona, it’s between €6,200 and €7,000.”

The mayor of Málaga, Francisco de la Torre, has been credited with the city’s transformation, Rabassa said. The mayor’s goal is for Málaga to become an innovation and sustainability powerhouse, and with a sizable tech sector already in place—with the likes of Google, Bombardier, Siemens, and Oracle calling the city home—it looks like the region is already on the way to achieving that status.

Under an hour’s drive from Málaga, Marbella’s super luxury market continues to go from strength to strength. “Marbella has reached a whole new level of recognition as a luxury destination,” Rabassa said. “It has finally become a household name in Europe as well as an international symbol of quality.”

Rabassa explained that real estate prices in the area have been driven upwards due to low inventory and higher demand, which has, in turn, caused an historic increase in the sale of properties that are off plan or under construction.

Commenting on trends and buyer profiles, Rabassa noted that a typical buyer today is “younger and trendier,” with a background in web development, technology, or start-ups. These buyers, according to Rabassa, are looking for high-quality homes with contemporary architecture and state-of-the-art tech, as well as more sustainable and eco-friendly homes with designs that allow owners to get closer to nature.