Marbella’s Goldilocks Market “Goes Viral”

Marbella’s real estate market continues to go gangbusters as it becomes an ever-more powerful magnet for those seeking luxury and high quality lifestyles.

Marbella just shattered every luxury real estate record in the book. While most markets struggle, the Costa del Sol’s crown jewel keeps shining.

The numbers are staggering. Official data from property appraisal company Tinsa shows Costa del Sol coastal properties rose 14.3% in 2024. The average price reached €2,612 per square metre. That’s double the national average.

Marbella commands even higher premiums. Between Marbella and Manilva, holiday homes average €4,100 per square metre. Prime locations fetch substantially more. Some beachfront properties exceed €30,000 per square metre.

The Golden Triangle recorded remarkable growth. According to the DOM3 business association, some 8,708 property sales across Marbella, Estepona and Benahavís in 2024. This represents a growth rate of 5.64%, which is 50% higher than the growth of the Spanish economy. It also represents a 20% higher sales volume than prior to Covid.

Foreign buyers dominate the luxury segment. According to the National Association of Property Registrars, foreigners make up 32.5% of home buyers in Malaga province. That number is higher in Marbella. When we look at luxury property, the percentage of foreign buyers of luxury property reaches an astonishing 90%, according to property portal Idealista.

Of these luxury purchases – homes higher than €2 million – fewer than 10% require mortgages. Bank of Spain data shows most purchases are cash transactions. That suggests that this is not highly leveraged speculation money – as was the case in the lead up to the banking crisis in 2007. This is “I want this lifestyle” money.

Why Marbella? Why Now?

While other luxury markets cool down, Marbella stays on the boil. In 2023, for instance, prices in Marbella grew by 13.7%. The reason is simple; the city offers something money can’t buy elsewhere. Year-round Mediterranean weather and lifestyle along with world-class infrastructure.

World-class golf courses dot the landscape. Over 70 championship courses stretch from Málaga to Sotogrande. Michelin-starred restaurants serve exceptional cuisine. Puerto Banús ranks among Europe’s most exclusive marinas.

There’s also a strong feeling of being in a region with healthy growth and improvement since the end of Covid. According to CaixaBank Research, Andalusia’s GDP grew 3.2% in 2024. This economic strength underpins property market stability.

The strong growth also suggests that Marbella has “gone viral.” Word has spread to Europe and beyond about the offerings of the city and region. Buyers are drawn here in growing numbers, boosting demand.

The Foreign Buyer Phenomenon

As noted above with the remarkable statistics on foreign luxury purchases, international buyers are flocking to Marbella in big numbers. Americans, who turned away from Marbella in the 1990s, now represent the fastest-growing segment and were third in terms of visitor numbers in 2024.

Because of this growing popularity, there are now daily, direct flights between Málaga and New York for five months of the year. This connectivity transforms accessibility.

American buyers discover value impossible to find in the USA. A luxury property in the La Zagaleta country club estate, the most expensive property in Benahavís, is €6,580 per square metre. In San Jose, California the price is €7,800 for a luxury home.

While Americans are a growing segment of the market, buyers come from a total of 153 different countries, representing 78.6% of the population of the world. This diversity helps to insulate Marbella from single-market dependence, though Britain continues to be the largest source of buyers at 15%.

This speaks to the virtuous circle that exists on the Costa del Sol of strong tourism that leads ultimately to home purchases. It is true that this summer the number of tourists has declined. However, that is quite possibly from an unsustainable record high last year that saw 14.4 million come to the region.

It has, in any case, had no effect on sales or prices in Marbella or the Costa del Sol more broadly.

Looking Ahead to 2026

Market fundamentals remain strong for continued growth. Not only is Spain’s economy continuing to grow better than any other large economy in the EU. There’s also an imbalance in the overall housing market that will take another year or two to work out, at least.

That is, there’s not enough houses being built to meet the demands of Spain’s growing population and vibrant vacation property market. That means that price growth will remain strong.

That’s good news and bad news, depending on whether you’re looking to sell or buy. However, there is a growth in construction of new homes, which is closing the housing deficit quickly. By next year, there could be enough houses built to meet new demand and then begin to be enough houses built to reduce the “housing debt”.

For Marbella, this continues to bode well for a strong real estate market. Not only are there already strong fundamentals, but the city finally passed a new planning law in June 2025, after almost 3 decades of fiascos and uncertainty.

Eliminating that roadblock is opening up a number of big projects, including affordable housing and infrastructure improvements. By the end of 2025, there is an expected construction investment total of €800 million.

Marbella’s ongoing real estate boom reflects fundamental value and the effect of its global reputation as a destiny of quality. The combination of climate, culture, and connectivity proves irresistible. The numbers tell the story. Marbella’s trajectory points skyward.

By Adam Neale | Property News | November 4th, 2025

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