Marbella Beachfront has extensive experience of southern Spanish property market and is proud to have helped so many clients find the perfect property for sale on the Costa del Sol. We keep a close eye on all activity, from the number of new apartments in Estepona to the stock of luxury villas in Marbella and high end Benahavís real estate, so we know when prices go up and sales go down.
However, you don’t have to take our word for it, we’ve perused the latest forecasts compiled by property experts and analysts including banks and Tinsa, to give you an overview of how the property market in Málaga is expected to perform throughout 2025. The information we are about to impart should give you an idea of whether this year is the time buy on the New Golden Mile, Estepona or if you should be looking for Marbella Golden Mile property for sale (on the original Golden Mile).
Overview
Regardless of the unstable global economies, there is no doubt that 2024 was an incredible year for property prices in Málaga Province (including the Costa del Sol) property market. The cost of buying a property in Málaga in 2024, has risen by 8.3 per cent, with the highest increases in sought-after locations such as the Golden Triangle of Marbella, Benahavis and Estepona. Both premium and mid-range properties both saw increased interest, amongst international investors, foreigners looking for a second home and also the growing number of digital nomads attracted to Spain’s sunshine lifestyle.
Bankinter reports that over the last 10 years since the property market crash in 2014, house prices in Spain have almost increased by an astounding 56 per cent. This upward trajectory is expected to continue throughout 2025, for both property sales prices and rentals, due to growing demand.
Influencing factors
Demand for property is growing due to a number of contributing local factors, Caixa Bank suggests that the stronger economy (Spain’s GDP increased by 2.5 per cent in 2024), controlled inflation, higher rates of employment, lower household debt and increased household savings. The recent drop in interest rates also allows easier access to mortgages, encourages sectors of society who historically wouldn’t have access to credit. Even with the end of the Golden Visa scheme, there is a consistently high demand amongst the aforementioned foreign buyers from Europe, the Middle East, Asia and the USA.
The Center for City Development policy identified two main groups of buyers who are dominating the Spanish property market; Spanish middle classes who are taking advantage of the more accessible credit and the above mentioned wealthy international buyers, who are sourcing luxury property in Marbella and similarly sought-after coastal areas.
Málaga property sales
Málaga’s property market has been relatively untouched by the recent cost of living crisis as around 40 per cent of property purchases were cash transactions (INE statistics). Many of these are international buyers who investing in both new build and resales, snapping up luxury property for sale that offer access to the rarefied Costa del Sol lifestyle and savvy investment opportunities.
Costa del Sol property prices in 2025
The Golden Triangle provides a clear snapshot of the uptick in house prices on the Costa del Sol, clearly illustrating the dramatic increases over the last 12 months. Statistics published on Indomnio.es, show that in Estepona, the average property price per square metre was 3,901€ in October 2024 which equates to an astonishing increase of 14.47 per cent compared to December 2023. The average price of Benahavís property for sale is 5,060€, representing a 12.52 per cent increase from December 2023 to October 2024. Similarly in Marbella, one of the top destinations for investors looking for property to buy on the Costa del Sol, the average house price had an average cost per square metre of 5,371€ in October (13.53 per cent increase upon 2023).
BBVA research has also established that property prices are expected to continue rise, due to the shortage of housing stock in certain areas (due to multiple factors, including labour, regulations and a lack of suitable land).
Theoretical affordability rate
Tinsa, Spain’s largest property valuation company, recently published the results of its research and analysis spanning all provinces, which shows that the constant demand and limited supply of housing stock, has pushed property prices beyond the 30 per cent affordability threshold. Málaga is one of the five provinces identified as having the most expensive property prices which equates to a theoretical affordability rate of around 60 per cent of the average salary.
In conclusion, banks and property experts forecast that 2025 is going to see prices continue to increase by between 2 per cent to 6 per cent. Therefore, now is the time to buy if you are considering purchasing an investment property or making Marbella and its environs your home. Contact Marbella Beachfront today and let us help you find your perfect beachfront property in Marbella, check out our website www.marbellabeachfront.com or get in touch Call, WhatsApp or email.
