The Marbella and Costa del Sol Property Market: What Is Really Happening?
Marbella When the market is viewed calmly and over a longer time horizon, a clear and consistent growth trend emerges rather than a sudden or speculative boom.
How Have Prices Evolved Over Time?
Average price per square metre has increased steadily in recent years.
In 2019, prices were around €3,200 per square metre. By 2021, the average had risen to approximately €3,600 per square metre. In 2023, prices exceeded €4,300 per square metre. In 2025, prices in many areas range between €4,800 and €5,500 per square metre.
In prime locations such as Golden Mile and Nagüeles, prices are often significantly higher. In 2025, Marbella’s average price per square metre surpassed €5,400, marking a historic high. Annual growth has remained at around nine percent or higher. Importantly, this is not a short-term spike, but a long-term structural trend.
Why Does the Market Continue to Rise?
The reasons are clear and structural:
- Strong international demand – active buyers from Northern Europe, the United Kingdom, the Middle East, and the United States. Foreign buyers account for a significant share of transactions in Marbella.
- Limited land and development opportunities close to the coastline, especially for luxury, prime, and beachfront projects.
- Rising construction and material costs, which increase the replacement value of new developments and put upward pressure on prices across the wider market.
- Lifestyle and permanent-residence buyers – an increasing number of people are relocating permanently, seeking quality of life, healthcare, schools, and climate rather than short-term speculative gains.
- Investor confidence in stable markets – long-term investors and institutional capital view the Costa del Sol as a resilient and secure asset class.
Why Is the Costa del Sol Still a Rational Choice Today?
This market does not operate on a “boom and bust” cycle. It moves steadily—and that consistency is precisely what enables lower-risk, long-term growth. Those who entered the market three to five years ago have already seen substantial value appreciation. Those buying today are positioning themselves for the next growth cycle, not chasing missed opportunities.
Broader statistics support this view: the Spanish property market as a whole remains in a growth phase, and the Costa del Sol clearly outperforms national averages.
The right question is not “Is Marbella expensive?” A much more relevant question is: “What will this same property be worth here in five years?”
History has been very clear: where demand consistently exceeds supply, prices rise. In Marbella, this imbalance is structural rather than temporary.
What Do the Latest Market Reports Show?
- In 2025, the Marbella property market reached record price levels, exceeding €5,400 per square metre in several segments.
- Across the wider Costa del Sol, more accessible entry points still exist, for example in the Estepona area, while prime zones continue to maintain their premium status.
- Analysts forecast continued growth into 2026, albeit at a more sustainable pace rather than sharp increases.
In Summary
The Costa del Sol is not a bubble. It is a mature, internationally connected real estate ecosystem supported by very concrete fundamentals: high quality of life, limited supply, consistent long-term price growth, and strong global appeal.
This is a market that rewards clear thinking, good timing, and patience. Those who feel most confident here are the ones who look forward, not backward. If you are interested in where value is moving next on the Costa del Sol—whether in new developments, emerging areas, or long-term value properties—I am happy to support you in making the right decisions.
Reelika Andresson
+372 5083389
reelika.andresson@novekinnisvara.ee