Costa del Sol property market: prices, trends and outlook

The Costa del Sol property market in 2025

The Costa del Sol is Spain's most dynamic property market. Demand for new-builds is especially strong: foreign buyers account for over 30% of transactions, and supply cannot keep pace with demand.

Over the past five years new-build prices in prime Costa del Sol zones have risen by 10-14% per year. This pace continues into 2025, though growth is slower in the top-end segment (above 1M euros).

Prices by location

Estepona

Estepona is one of the fastest-growing towns on the Costa del Sol. New-build apartment entry prices range from 250,000 to 350,000 euros, with penthouses starting at 400,000 euros. Price growth over the past two years has exceeded 13% per year.

Marbella

Marbella is the luxury hub. New-build entry prices start at 450,000 euros, rising above 700,000 euros in sought-after neighbourhoods (Golden Mile, Nueva Andalucia). Rental yields are lower (4-5%) but capital appreciation is outstanding.

Mijas

Mijas offers the best value entry point on the Costa del Sol. New-build apartments are available from 220,000 euros, while rental demand is strong thanks to nearby La Cala de Mijas beach.

Benalmadena

Benalmadena is a tourist favourite, delivering high short-term rental yields (6-8%). New-builds start at 280,000 euros; the marina area is the most sought-after.

Casares and Benahavis

These two smaller towns epitomise exclusivity. Casares offers a tranquil golf-adjacent lifestyle from 260,000 euros, while Benahavis features a premium villa market with entry prices above 500,000 euros.

Rental yields on the Costa del Sol

Short-term (tourist) rental net yields range from 5-8%, depending on location and property type. Long-term rental yields are 3.5-5% net. The best returns are found in Benalmadena, Estepona and Mijas Costa.

What drives the Costa del Sol property market?

• •300+ sunny days per year and mild winters providing a 12-month season
• •Strong infrastructure: Malaga airport (22M+ passengers/year), AVE high-speed rail, motorway
• •Foreign demand: British, Scandinavian, German, Dutch and increasingly Eastern European buyers
• •Limited supply: new-build project numbers don't cover demand, pushing prices up

What should investors watch for?

The Costa del Sol market is stable, but where and what you buy matters. Choose bank-guaranteed new-build projects, check developer track records, and get independent legal advice. That is exactly what we help with.