High-Quality Housing grows by 15%, approaching €1.2 billion on the Costa del Sol in 2023

       DOM3-affiliated companies provided direct employment to over 2,300 professionals last year.      

During the peak season and one of the best years in recent decades, the luxury housing sector has reviewed the fiscal year 2023, which also saw very positive figures in the golden triangle (Marbella, Estepona, and Benahavís). Specifically, the more than 40 companies associated with DOM3 generated a total business volume approaching €1.2 billion, representing a 15% increase compared to 2022. 

This significant increase in revenue is mainly due to the increased activity of the companies, in line with the dynamism experienced by the sector. Additionally, the growth of the association itself, which added more than 15 new members in 2023, contributed to this rise.

"2023 delivered very encouraging data for this sector, which has already consolidated as one of the main industries on the Costa del Sol and one of the major generators of stable and quality employment. Furthermore, we can already reveal that during the first half of this year, all those figures have been surpassed," says Charly Simon, President of the Association of Businesspersons for High-Quality Housing.

Over 2,300 direct Jobs

The economic impact of the sector has increased at the same rate as the revenue. It is estimated that in 2023, DOM3-affiliated companies directly employed around 2,300 professionals and generated approximately 5,200 indirect jobs, the vast majority of which were in local companies and neighbouring municipalities. According to this data, employment in the sector grew by over 10% in 2023, also registering a high demand for labour in most positions related to high-quality housing.

Building a high-quality home is practically equivalent to establishing a small to medium-sized enterprise, involving between 70 and 100 professionals and dozens of companies from all sectors, including real estate agencies, lawyers, or notaries, as well as engineers, architects, decorators, hydraulic and electrical installers, painters, landscapers, natural stone specialists, and home automation experts, among others.

"DOM3's objective goes far beyond achieving record figures. We have a strong commitment to quality and excellence to ensure the highest levels of satisfaction for our clients. Among our members are the most important companies in each sector involved in luxury housing. We have the best architects, construction companies, landscapers, lawyers, interior designers, technology, and home automation experts… This guarantees that every project carried out by our members is a success," adds Simon.

New Markets

According to the report prepared by DOM3 with data from its members, one of the aspects that marked 2023 and is even more noticeable in the first half of 2024 is the growth of new markets. With more than 95% of foreign clients, new nationalities have joined the traditional British, Belgian, French, and Nordic clients, such as Poles, Ukrainians, Arabs, Americans, and Latin Americans (especially from Mexico and Brazil).

In 2023, DOM3-affiliated companies also diversified their activities. Many of them, in addition to building luxury villas and apartments, were involved in other projects such as large hotels, cultural spaces, restaurants, or major international resorts. This aspect strengthens and consolidates the sector's weight in the Malaga economy.

Despite the intense volume of activity in the sector on the Costa del Sol, some DOM3-affiliated companies are diversifying their scope of activity and have significant projects outside the province in areas such as Seville, Madrid, or the Balearic Islands. Others are even working internationally in countries like France, Belgium, Colombia, Morocco, or the United States (mainly Miami due to the similarities this destination has with Marbella).

"Taking our brand of excellence to the main residential destinations in the world is a challenge and a responsibility that our members are successfully facing, demonstrating the strength of a sector that is in full growth," noted the President of DOM3.

Considering this data and the records up to June, DOM3 estimates that 2024 will be a record year in which the sector will grow again by double digits. "The forecasts are very optimistic and are being met so far, but we must not forget the major challenges of the sector, which are the lack of labour, drought, and the need to improve infrastructure. Therefore, we insist that administrations take measures before these situations can compromise the growth of this industry, putting thousands of jobs at risk," concluded Simon.