The real estate market in the Costa del Sol is currently experiencing one of its strongest and most dynamic periods in recent years. Marbella, Estepona, Benahavís, and other prime locations along this Mediterranean coast continue to attract high-net-worth international investors.
More and more people are choosing to invest in southern Spain, drawn by the excellent climate, world-class gastronomy, and high demand for leisure activities. If you are looking for a second home, a profitable investment, or even a golden retirement under the Andalusian sun, this article provides an accurate and up-to-date analysis of the Costa del Sol real estate market in 2025, aimed at helping you make the best decision.
Why the Costa del Sol Real Estate Market is booming in 2025
Over the last decade, the Costa del Sol has established itself as one of Europe’s leading luxury real estate hubs. Its combination of Mediterranean climate, international accessibility, top-quality services, and relaxed lifestyle has driven increasing demand from buyers worldwide.
In the past five years, this region has seen steady market growth, with continual price increases and a more diversified buyer profile. Foreign investment—especially from Northern Europe, the Middle East, and the Americas—has fueled this expansion. This dynamic has transformed the Costa del Sol into a robust, sophisticated market with very promising prospects for the coming years.
The luxury property market in the Costa del Sol remains extremely healthy in 2025. Its international appeal, rising prices, limited supply, and high quality of life make it a prime location for wealth preservation and growth.
Growing international demand driving the 2025 Costa del Sol market
The Costa del Sol remains a top destination for international buyers. During the first half of 2024, visits from foreign investors increased by 13.6% compared to the previous year, reinforcing an upward trend showing no signs of slowing down. The buyer profile has evolved: alongside traditional British buyers, Germans, Scandinavians, Dutch, and an increasing number of Gulf region nationals are now prominent.
These investors seek stability, excellent climate, high living standards, and properties with sustainable value. The area offers all these benefits, supported by world-class infrastructure, Málaga’s excellent flight connectivity, and a wide range of international services.
Luxury home prices on the rise in 2025
Prices in the luxury segment continue to climb. Marbella leads with average prices exceeding €4,800/m², marking a 13.7% year-on-year increase. Across the Costa del Sol, key locations show price rises between 5% and 8%.
Within the renowned “Golden Triangle” (Marbella, Estepona, Benahavís), prices grew 11.9% year-on-year, with Estepona particularly strong at 15%. This surge is driven by high demand and limited availability of premium properties. Resale homes dominate, accounting for more than 85% of transactions in this significant price increase.
Limited supply and new developments in the Costa del Sol in 2025
Strict regulations on developable land limit new construction projects. This scarcity, combined with strong demand, exerts upward pressure on prices. In established areas such as Marbella or La Zagaleta, availability is so low that many properties sell without being publicly listed.
Most new developments focus on sustainability, contemporary design, and luxury amenities. This creates a competitive market where securing a quality property requires speed and professional guidance.
Branded residences: the future of luxury Real Estate on the Costa del Sol
Branded residences are on the rise. Projects like UNO Marbella and developments by Dolce & Gabbana and Fendi attract buyers seeking not just a home, but a complete lifestyle experience.
While not all, prices for these exclusive properties can reach up to €20 million, with many units sold before completion. Buyers prioritize exclusivity, privacy, personalized services, and prime locations, all hallmarks of this innovative residential format.
Sustainability and innovation: key buyer priorities in 2025
Investors increasingly value energy-efficient homes. Solar panels, thermal insulation, sustainable materials, and advanced home automation are virtually essential in new builds.
These features address growing environmental awareness and improve residents’ quality of life, while adding long-term economic value. They also ensure a more comfortable, efficient, and secure living experience, highly prized by international buyers.
Luxury rentals as a return on investment
The high-end vacation rental market remains strong. Properties in Marbella, Mijas, and Estepona offer solid returns, with high occupancy rates for most of the year.
Andalusia’s well-regulated short-term rental market and excellent tourism infrastructure support an attractive market for both personal use and rental income. For many investors, this represents an effective way to generate revenue while benefiting from property appreciation.
Economic stability and trends
Despite global economic uncertainties, the Costa del Sol continues to be a safe haven market. Inflation and mortgage interest rates have had some impact, but the luxury buyer profile—mostly purchasing without financing—remains resilient.
Furthermore, Spain’s political stability and EU membership are key factors for many international investors, especially amid geopolitical uncertainties elsewhere.
Costa del Sol Real Estate Market forecast for 2025
While other parts of Spain may see flat or slightly declining sales, forecasts for the Costa del Sol remain optimistic. Prices are expected to grow between 5% and 8% in the most sought-after areas. Demand will stay strong, fueled by quality of life, legal security, and limited supply of exclusive properties.
Detached villas with private plots and pools will remain the most sought-after housing type. Interest in boutique apartments within gated communities offering hotel-like services will also rise, underscoring the fact that high-net-worth investors are driving real estate purchases along the Málaga coast.
Costa Sunsets helps you invest in the Costa del Sol real estate market in 2025
In this competitive and fast-moving market, having a strategic partner is essential. At Costa Sunsets, we provide personalized service and expert guidance to help you identify the best market opportunities.
With deep local knowledge and a client-focused approach, Costa Sunsets supports you throughout the process—from property selection and negotiation to legal, tax, and rental management. If you want to invest safely and with confidence, Costa Sunsets is your trusted ally on the Costa del Sol.
