Market · Q2 2023
Home sales in Marbella and Benahavís in Q2 2023: what the 26% drop really means
A 26% fall sounds alarming. Set against the record year of 2022, it looks very different.
SHORT ANSWER
In the second quarter of 2023, closed home sales fell 26% in both Marbella and Benahavís, according to the Ministry of Housing. The comparison is with the record year of 2022, and the first half of 2023 still ranks as the second or third best first half in the history of both municipalities. The market is cooling, not collapsing.
IN THIS ARTICLE
These are the key points of the Ministry of Housing report on the second quarter of 2023. The data refer to that period and are not current.
How much did sales fall in the second quarter of 2023?
The latest report from the Ministry of Housing shows a 26% decrease in closed transactions in the second quarter of 2023, in both Marbella and Benahavís. It is natural to wonder what this says about the state of the market, so let us put it in context.
Is a 26% fall as bad as it sounds?
The comparison is with the exceptional year of 2022, when historical sales records were set. That year Marbella closed 53% more sales than its average annual transaction count and Benahavís an astonishing 91% more.
The percentage falls are significant, but the first half of 2023 still ranks as the second or third best first half in the real estate history of Marbella and Benahavís. The year will not match the extraordinary 2022, but activity remains healthy.
Will demand keep cooling?
Demand for property is cooling at present, possibly because of global uncertainty and rising interest rates. Even so, Marbella, Benahavís and the whole Costa del Sol remain among the most sought-after destinations in Europe thanks to their lifestyle. We expect demand to pick up again once the global situation stabilises and improves.
New build or resale: where did sales fall?
There is an interesting difference between new and second-hand homes, and it is not the same in the two municipalities:
- Marbella: the main fall in closings is in new builds, which account for 8% of sales and dropped 73%.
- Benahavís: sales of new units rose 40%, while resale fell more sharply, by 32.7%.
Although home sales are down 26%, the market in Marbella and Benahavís remains active. The second half of the year will decide how 2023 ends.
Alfonso Lacruz
Summary
Despite the 26% decline, the Marbella and Benahavís market remains active, and the first half of 2023 is still among the best in the history of both places. We expected the second half of the year to cool further, and it would decide how 2023 ended. In spite of the current challenges, the outlook for the coming years remains positive.
Frequently asked questions
How much did home sales fall in Marbella and Benahavís in Q2 2023?
By 26% in closed transactions in both municipalities, according to the Ministry of Housing, compared with the record year of 2022.
Was the first half of 2023 a bad one for the market?
No. It still ranks as the second or third best first half in the real estate history of Marbella and Benahavís.
Did new builds and resale behave the same way?
No. In Marbella new builds fell 73% (8% of sales), while in Benahavís new-build sales rose 40% and resale fell 32.7%.
About the author
Alfonso Lacruz
Naval engineer and market analyst. Over 25 years advising owners in Marbella and Benahavís. Publishes a monthly market analysis with Land Registry data.
The figures are indicative and every property is different: for a specific number, ask for a valuation of your home.
Sources: Ministry of Housing (Ministerio de Vivienda), report on home sales for the second quarter of 2023; Alfonso Lacruz Team | KW analysis. Last updated: 16 October 2023.
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