Is property on the Costa del Sol already too expensive?
There are many opinions circulating about the Costa del Sol real estate market. It is often claimed that property here has already become too expensive and that the main price growth happened years ago. However, the reality is much more nuanced. When looking at the market over a longer time horizon, a clear and consistent growth trend can be seen rather than a short-term 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?
- Strong international demand – active buyers from Northern Europe, the United Kingdom, the Middle East, and the United States. Foreign buyers account for a large share of transactions.
- 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?
Consistency means lower-risk long-term growth. Those who entered the market 3–5 years ago have already seen significant increases in value. Those buying today are positioning themselves for the next growth cycle rather than chasing opportunities that have already passed.
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 exceeds supply, prices rise. And here, demand is continuous rather than temporary., mitte ajutine.
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 expect growth to continue in 2026, albeit at a moremoderate pace.
In summary, the Costa del Sol represents a mature and internationally connected real estate ecosystem supported by very clear fundamentals: high quality of life, limited supply, strong and consistent price growth, and global appeal.
If you are interested in property on the Costa del Sol, I would be happy to help you find the most suitable option.
Reelika Andresson
+372 5083389
reelika.andresson@novekinnisvara.ee