By Christofer Fogelberg of property experts Start Group

GLOBAL conflicts can feel far removed from the beaches of Marbella or the white villages of the Costa Brava – but history shows they can surprisingly impact the local property market.

The latest tensions involving Iran have already pushed oil prices sharply higher, sparking economic uncertainty worldwide. 

When oil prices rise, currencies shift, which can quickly affect the spending power of international buyers looking at property in southern Spain.

Take Norway as an example. The Norwegian krone (NOK) is closely tied to global energy markets because Norway is a major oil exporter. 

The NOK has strengthened almost 6% against the Euro since Jan 1, meaning homes on the costas become cheaper for Norwegian buyers.

A typical €500,000 property purchase now effectively costs a Norwegian buyer €30,000 less than it did at the beginning of the year. 

The same principle applies to other key buyer markets. 

The Swedish krona and the British pound have both seen volatility in recent years.

If either currency strengthens against the euro, buyers from those countries suddenly gain extra purchasing power when looking at Spanish property.

Foreign buyers are already a driving force in Malaga’s property market, particularly in areas like Marbella, Estepona and Benalmádena, where international purchasers make up a significant share of transactions. 

Global instability can also change where buyers come from.

Following Russia’s invasion of Ukraine in 2022, estate agents across the Costa del Sol reported a surge in buyers from countries close to the conflict, particularly Poland, the Czech Republic and Slovakia. 

Many were looking to diversify investments or secure a property in a stable and attractive part of Europe.

A similar pattern could emerge again if geopolitical tensions continue to unsettle markets.

For international investors, property in lifestyle destinations like the Costa del Sol is often seen as a relatively safe long-term asset. 

So while the conflict may be unfolding thousands of kilometres away, the ripple effects – from oil prices to currency shifts – could quietly influence who the next wave of buyers on the Costa del Sol will be.

Click here to read more Sponsored News from The Olive Press.