Robust & Resilient
Despite best efforts by Brexit stupidity, apocalyptic pandemics, Pedro Sanchez throwing grenades at investor confidence, Scandinavian currency wobbles, Trumpmania, wars and the cost of living crises throughout Europe, all indications suggest that Costa del Sol and Marbella area property prices will continue to rise.
And why wouldn’t they? Since Covid we’ve witnessed a blurring of the lines between primary and secondary residences. This shift, coupled with the area’s enduring appeal to international buyers, contributes to the market’s resilience. In 2023, Marbella saw a 13.92% increase in sales, while Estepona experienced a slight increase of 1.65%.
Market fundamentals remain robust, bank lending is controlled, and demand remains stronger than supply.
On the Costa del Sol will see property price corrections where sellers (or agents desperate for a listing) have got greedy, but not market-wide reductions.
Recent data supports this trend, with experts predicting property price increases across Spain of between 2.8% and 5% for 2025.
Specific areas are experiencing notable growth. According to REBS forecasts, new home prices in the province are expected to rise by 18.7% in 2025, with the average value reaching 535,770 euros. Even pre-owned housing is anticipated to see a 6.3% increase, with prices approaching 320,000 euros.
The market’s strength is further underscored by BBVA Research, which forecasts a nominal increase of 4.7% in housing prices for 2025, while Bankinter predicts a rise of over 5%. This growth is attributed to strong demand, particularly from international buyers, and a limited supply of new housing.
As one industry expert notes, “The Costa del Sol remains a standout in Spain’s property market. Its international appeal, combined with a limited supply of homes, ensures it will stay a seller’s market for the foreseeable future.”
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