Will 2024 be a good year to buy property in the Costa del Sol?

New year, new you… new life in the sun?

Perhaps you’re ready to retire and wish to enjoy your golden years in style? Perhaps you’re keen to relocate and give your family a better quality of life? Or maybe you’d just like an idyllic base – somewhere to escape during the winter months or visit for summer holidays?

Good news – 2024 could be the perfect year to make the leap.

Over the last few years, we can’t deny, there’s certainly been a few obstacles standing in the way of those looking to buy a property in the Costa del Sol. Brexit. Visas. COVID. The soaring cost of living to name but a few. However according to the experts, things may be about to improve for wannabe expats – and the next 12 months could be the ideal time to finally make that dream of yours a reality.

Here’s why.

5 reasons to invest in Costa del Sol real estate this year

Time to grab your passport and finally say ‘Hola Espana!’

1. Decreasing interest rates

2023 was a year marked by high inflation and rising interest rates in Spain.

In September, the Euribor (i.e. the EU’s benchmark interest rate) reached its highest level since February 2009 – exceeding 4.2%. The aim of this was to moderate inflation. Naturally, as the Euribor is directly linked to mortgage rates, monthly mortgage payments increased as a result.

Looking forward, though, it seems things are about to improve.

From October to December 2023, Euribor began to decline (falling to 3.9% by 29^th December) – and whilst its levels are unlikely to hit the negative figures of 2022, forecasts suggest this downward trend will continue. In fact, if the most optimistic predictions are true, the estimated value of Euribor at the end of 2024 will be around 2.4%. Ultimately, making mortgages much cheaper.

2. A moderation in house prices

Rising interest rates may have been a challenge for the Costa del Sol property market, but against the odds, they’ve failed to have an impact on the overall demand for homes on the ‘Sunshine Coast’. Housing prices not only remained stable but actually continued to increase in 2023. According to the latest data, TINSA reported a 4.1% growth in values up to December.

For 2024?

Bargain price drops are unlikely to materialise any time soon. However, the last quarter of the year seemed to confirm a progressive slowdown in growth. A moderation in housing prices is likely to be on the cards for the next 12 months, meaning that the Spanish property market will remain affordable – particularly compared to like-for-like homes in the UK – and attainable for many looking to buy.

3. Confirmed quality of life

According to the 2023 InterNations Expat Insider Survey, 87% of expats living in Spain expressed contentment with their lives – far exceeding the global average of 72%. As a result, Spain secured second place (out of the 53 countries surveyed) in the best destinations for expats.

In fact, since this survey began in 2014, Spain has consistently featured in the top 10 countries for quality of life – whilst also scoring highly for ease of settling in, working abroad and finances.

If you’d like to relocate in 2024, to somewhere that can offer warm hospitality, rich culture, favourable finances and a fantastic quality of life, the Costa del Sol certainly won’t disappoint.

4. Tax haven

Going into 2024, the Costa del Sol is a true tax haven for expats.

For a start, wealth tax has now been abolished. This used to apply to both residents and non-residents with worldwide assets above €700,000 – and deterred many high earners from purchasing a home and moving permanently to the area.

This is a real game changer for potential buyers, particularly when combined with the many other tax advantages of living in the region (e.g. virtually no inheritance or gift tax, investment income tax rates and capital gains tax rates of 19-26%, private pensions treated as investment income etc).

What’s more, the Modela 720, has also been recently updated.

As a declaration of overseas assets (of €50,000 or more), the 720 form is strictly informative and no tax is charged upon filing it. However until last year, failure to file or filing incorrectly could (and often did) result in extortionate fines, and it was criticised as a ‘shameless attempt to shakedown expats’.

However – in light of a European Court of Justice ruling – past and present fines have now been revoked, and the associated penalty regime has been updated with immediate effect. Meaning, if you wish to buy a property in the Costa del Sol, you can do so without the risk of a crippling fine.

5. The end of the 90 day rule?

Since Brexit, UK citizens have retained the right to purchase a house in the Costa del Sol – but the 90 day rule has severely limited how long they can stay there. Essentially, this controversial EU regulation has meant that Brits can only spend up to 90 days (within a total period of 180 days) in Spain. To stay longer requires a visa – undoubtedly discouraging many people from investing.

However, things could be about to change.

Following France’s recent decision to amend immigration law for British second homeowners, the Spanish government have now joined calls to axe this unpopular rule. This means, over the next 12 months, more freedom, longer stays and less bureaucracy could be on the cards for UK expats.

It’s important to point out, as yet nothing has been officially decided on this matter – but it is a step in the right direction and could signal the dawn of a new visa-free era for British property owners.

Think 2024 could be the year for you?

Here at Bromley Estates Marbella, we’re anticipating another busy year ahead. If you’re thinking about moving to Spain or planning to buy a home in the Costa del Sol in 2024, we’re here to help and are looking forward to hearing from you.

As a leading real estate agency, we have access through our extensive collaboration network not only to our own listings, but to all properties for sale in the Costa del Sol – including new developments, villas, townhouses, apartments and even plots, with something to suit all needs, wishes and budgets.

We continuously search the market for the best homes available in Marbella, Puerto Banús, Estepona, Cabopino, Nueva Andalucía, Elviria and many more popular areas.

Now is a fantastic time to be investing in Costa del Sol real estate, and despite the continued level of demand in 2023, we have thousands of properties available for you to view this new year. So why not take a look through our online portfolio and see if anything catches your eye?

If you have any questions, please feel free to get in touch with our specialists. You can call us at any time on +34 952 939 460 (+44 208 068 7606) or send an email to info@bromleyestatesmarbella.com and we’ll respond to your enquiry as soon as possible.