The Costa del Sol, the famous coastline in the south of Spain, has for many years held a reputation as one of the most sought-after locations not only for comfortable living but also as an exceptional place to invest in real estate. The year 2024 brought a significant shift in the local property market, laying a solid foundation for further growth, which is predicted with great anticipation for 2025.

The real estate market in the region reached historic levels in the first nine months of 2024. There were more than 32,000 real estate transactions, with foreign buyers accounting for a significant share - specifically 22 %. Most demand was for luxury villas in the €1-5 million price range and modern apartments with breathtaking sea views.

• New construction accounted for approximately 40 % of the total sales volume, representing approximately 12,800 units. The highest concentration of new projects was seen in the Estepona and New Golden Mile areas, where modern architecture and an emphasis on sustainable technologies dominate.
• Older properties, so-called resales, accounted for the remaining 60 % of the market, equivalent to approximately 19,200 transactions. This segment was particularly popular in traditional and prestigious locations such as Marbella and Fuengirola.

In 2024, demand for luxury property on the Costa del Sol remains extremely high, with interest coming mainly from foreign buyers in the UK, Germany, Scandinavia and the US.

• MarbellaA: Unrivalled market leader, especially in prestigious locations such as the Golden Mile and La Zagaleta. These exclusive addresses offer not only total privacy, but also top-notch service and an exceptional standard of living.
• Benahavís: The perfect choice for those who desire a harmonious blend of tranquility and luxury. This area is famous for its prestigious villa complexes with breathtaking panoramas.
• Estepona: Thanks to modern development projects and luxury beachfront residences, Estepona is becoming increasingly popular and one of the most desirable locations on the coast.
• Sotogrande: An exceptional destination offering a premium lifestyle and long-term investment security. The combination of prestigious facilities, including top golf courses and international schools, ensures continued demand and steady growth in property values.

The luxury market on the Costa del Sol has promising growth ahead, with a forecast increase of 10-12 %. Most demand will be concentrated on eco-friendly projects and exclusive properties with prices exceeding the 5 million euro mark.

The year 2025 opens the door to a unique opportunity in the Spanish real estate market. Despite the end of the Golden Visa programme, Spain retains its position as one of the most sought-after destinations in Europe. Key factors that strengthen this attractiveness include:

• Decline in interest rates: It is expected that mortgages will become more affordable due to a reduction in interest rates to around 2.1 %, which will make it much easier to finance investments.
• Rising demand: Investors from home and abroad continue to buy property, with the greatest interest in locations with high rental potential.
• Limited supply: The lack of new construction is increasing pressure on the existing market, leading to an increase in the value of existing properties.

The Spanish real estate market in 2025 thus represents an ideal opportunity not only for experienced investors, but also for those looking for long-term appreciation of their funds.