Property Sales Market Report
The Malaga & Costa del Sol housing market in 2025 presented a picture of resilient stability, underpinned by historically high sales activity, continued price growth, and an expanding supply of new developments. Mortgage activity rebounded strongly as the Euribor declined to 2.22%, reflecting materially improved borrowing conditions. The following report explores the key market segments and trends.
Sales Performance
Home sales in Malaga province (home to the west Costa del Sol) totalled 36,164 in 2025, down from 37,790 in 2024 — itself a 7% rise on 2023’s 35,470 and the second-best year on record. Despite the modest -4% decline from 2024, sales remained 10% above the ten-year average and have increased by 40% over the last decade — highlighting that activity is still elevated by longer-term standards and the market continues to operate at historically high levels.
Foreign Buyers
Foreign demand remained a defining feature of the market. There were 13,783 home purchases by foreign buyers in 2025, down from 14,475 in 2024 (-5% YoY). The total comprises 4,022 expats (up from 3,963 in 2024, +2%) and 9,761 foreign non-residents (down from 10,512, -7%). The split tells a clear story: residency-driven purchases by expats continue to grow, while pure second-home FNR activity has cooled following Spain’s abolition of the Golden Visa in April 2025.
Foreign buyers accounted for 39% of all transactions in 2025, holding steady year-on-year and remaining one of the highest foreign market shares in Spain. This sustained level highlights Malaga’s continued appeal to overseas buyers seeking lifestyle, retirement, and investment opportunities on the Costa del Sol. Foreign demand remains a central pillar of the provincial housing market.
New Build Homes
New-build home sales totalled 5,223 units in 2025 — essentially flat versus 5,360 in 2024 (-2%), but in context the 2024 figure itself represented a 56% surge from 3,445 in 2023. Set against this backdrop, the 2025 print confirms the new-build segment has stabilised at an elevated plateau. New-build transactions remain 33% above the ten-year average, and have increased by 111% over the last decade — reflecting the structural shift toward newly built housing in Malaga, where rising prices and demand have encouraged developers to expand supply.
Costa del Sol West Home Sales
Looking just at home sales in the municipalities of the western Costa del Sol, there were 19,714 sales in 2025 — down from 20,736 in 2024 (-5%), which had itself been the second-best year on record after 2022’s peak. For context, the 2024 figure was already an 8% gain on 2023’s 19,131. Despite the 2025 cooling, sales in this sub-market remained 7% above the ten-year average and have increased by 24% over the past decade — underlining the continued structural strength of the western Costa del Sol housing market, which remains one of the most active and internationally driven property markets in Spain.
House Price Trends
Home prices in Malaga province continued to rise in 2025. The average price of all homes sold reached €341,638 — up 8% from €315,274 in 2024, which had itself climbed 9% from 2023. Newly built homes averaged €410,145, a -2% change from €378,604 in 2024 (which was up 3% on 2023). The pattern is telling: the resale segment continues to appreciate at pace, while the new-build segment is showing the first signs of stabilisation after several years of strong growth.
Taking a longer view, price growth has been strong across both property types. The ten-year price index rose from 100 to 205 for all property types, and to 211 for newly built dwellings: · All property prices have more than doubled over the last decade (up 105%). · New build prices have increased by 111% over the same period. Over the last five years, all property prices rose by 50%, while new-build prices increased by 44%. The slightly stronger long-term growth of new housing reflects structural factors such as higher construction costs, scarcity of well-located land, and the increasing share of premium developments aimed at international buyers, particularly along the Costa del Sol.
Marbella Case Market
According to Idealista, the average asking price of property for sale in Marbella reached €5,410 per square metre in 2025 — an all-time high, up from €4,803 in 2024 (itself a 13% gain on €4,266 in 2023). Over the past five years, asking prices have risen by 71%. Among Costa del Sol municipalities, only Benahavís (€5,205/m²) is comparable.
Mortgage Market
Mortgage activity in Malaga province rebounded sharply in 2025, supported by falling borrowing costs. A total of 22,750 new mortgages were signed in the region — up 13% from 16,333 in 2024, which had itself declined 17% from 2023’s elevated count. The 2025 rebound returns lending to its strongest level in a decade: 26% above the ten-year average, and 86% higher than ten years ago. This signals materially improved financing conditions and renewed credit-driven demand.
A key driver of the rebound was the lower Euribor rate, which averaged 2.22% in 2025 — down from 3.27% in 2024, and well below the 2023 peak of 3.86%. The 32% year-on-year decline reflects the European Central Bank’s pivot to monetary easing through 2025 as inflation settled in line with target. Although still above the negative rates seen in 2021 (as low as -0.49%), borrowing conditions have meaningfully improved.
Housing Starts
Reflecting sustained developer confidence and robust demand in the new-build segment, planning approvals for new housing starts reached 10,021 in 2025 — up 7% from 9,349 in 2024, which had itself been a 29% jump on 2023. The 2025 figure is the highest in over a decade, sitting 66% above the ten-year average, with approvals having surged by 441% over the past ten years. Even so, supply still struggles to keep pace with the strongest demand pockets along the coast.
This growth aligns with rising demand for modern accommodation, including buyers prioritising energy efficiency, community amenities, and prime locations often found in new developments.
Rental Market Report
As one of the most desirable destinations in Europe, Spain — and particularly the Costa del Sol — continues to capture the attention of international investors, digital nomads, and second-home buyers. With a combination of Mediterranean charm, modern infrastructure, and strong tourism demand, the region remains a top-tier location for those looking to invest in rental property, whether for short- or long-term.
Why Spain, Why Now?
In February 2026, Madrid was crowned European Best Destination 2026 by European Best Destinations, with Almería also in the top 10. Spain continues to rank among the global leaders for tourism infrastructure, safety, sustainability and cultural heritage. This makes it not only an attractive place to live or visit, but also one of Europe’s most compelling places to invest in property.
What Your Budget Buys You
For buyers approaching the Costa del Sol from the Nordics, the UK or continental Europe, the most useful question is rarely “what is the average price per square metre” but rather “what does my budget actually buy in 2025”. The three brackets below reflect the most common configurations we see across the western Costa del Sol, drawn from current market activity and our own advisory work.
The International Buyer Shift
The geography of European wealth is being redrawn. Tax-regime changes in northern Europe, a new phase of cross-border capital mobility, and an accelerating preference for lifestyle-led residency are reshaping who buys property on the Costa del Sol — and how. Spain, and Andalucía in particular, sits at the centre of this shift.
From London to the Costa del Sol
The United Kingdom’s two-hundred-year-old non-domicile regime ended on 6 April 2025, replaced by a limited four-year relief for new arrivals. The reform pushes a meaningful share of long-term UK residents to re-evaluate where they live and where they hold their assets. Capgemini’s 2025 World Wealth Report records the UK shedding 14,000 millionaires in the most recent measurement year, while Europe’s HNWI population contracted by 2.1% overall — the only major region to decline alongside the Middle East. Spain’s Beckham Law — a 24% flat-rate regime for qualifying expatriates over the first six tax years — has become the most-discussed alternative jurisdiction in private-wealth circles, with Marbella and Madrid the two most frequently named destinations.
A wider field of origin
The shift is not uniquely British. Nordic and Benelux buyers continue to account for a sizable share of activity on the western Costa del Sol, with Swedish, Danish, Norwegian and Dutch nationals consistently ranking among the top ten foreign buyer groups in Andalucía according to the Consejo General del Notariado. For these buyers, the relevant variables in 2025–2026 are not headline tax rates but currency movement against the euro, return expectations under a falling-rate environment, and lifestyle quality — where Costa del Sol’s combination of international schooling, healthcare, year-round climate and direct air connectivity remains structurally hard to replicate.
What this means in practice
Three observable consequences are emerging across our advisory work. First, the average time between initial enquiry and reservation has shortened, particularly for turn-key properties in the €1m–€3m bracket where supply is thinnest. Second, secondary residency questions — schools, healthcare, vehicle imports — now form part of the property conversation from the outset rather than after purchase. Third, longer-term holding intentions are lengthening: buyers are arriving with a five-to-ten-year horizon rather than the shorter resale cycles seen earlier in the decade. Together these patterns argue for a market that is less speculative and more residentially anchored than at any point since 2015.
Costa del Sol Buyer Profile
The 13,783 foreign purchases recorded in Malaga in 2025 are not a homogeneous group. Foreign demand on the Costa del Sol is broad rather than concentrated — a mix of resident expats settling permanently, non-resident second-home buyers, and a growing cohort of remote and semi-residential professionals. Understanding the composition matters: it shapes which property types are in highest demand, which locations command premiums, and which buyer segments are likely to drive the next phase of the cycle.
British buyers continue to lead, but the Nordic block — Swedish, Danish and Norwegian buyers combined — has reached 18% of foreign transactions, making it the second-largest origin pool on the western Costa del Sol. This Northern European mix tilts the market toward lifestyle-led, residency-oriented purchases at the €600k–€1.5M range, where supply remains tightest. The pattern matters because it sets the demand profile for new-build pipeline coming online in 2026–2027: three-bedroom apartments with sea views, townhouses in well-served family communities, and entry-level villas in the secondary coastal band.
Malaga: Southern Spain´s Rising Star
Málaga has long been loved for its beaches and sunny lifestyle, but today it’s also one of Spain’s most dynamic property investment destinations. With a fast-growing tech industry, upgraded infrastructure, and a mild climate all year round, the city offers strong potential whether you’re considering short-term holiday lets or long-term rentals.
Rental income in Málaga remains among the highest in Spain. According to Tinsa’s Q1 2025 report, long-term rentals offer an average annual return of 7.9% over five years, reaching 11.1% in the East district and 9.7% in Palma-Palmilla. Rental demand continues to grow strongly: in March 2025 average rent stood at €15.60/m² (+10.2% vs May 2024), with the East commanding the highest rates at €16.70/m². Long-term rental supply across Spain is now down 61% since 2020, while average rents have surged 40%.
Malaga Airport: A Gateway Driving Growth
In 2025, the airport reached a new historic milestone with 26.76 million passengers — the highest figure in its 106-year history. That’s a growth of 7.4% over the previous year, reflecting the region’s soaring appeal to international tourists and second-home owners. With international travellers accounting for 22.3 million (83.2% of total), Málaga is fast approaching its 30-million-passenger capacity, doing so well ahead of national forecasts.
Málaga is now the 4th busiest airport in Spain, behind only Madrid-Barajas, Barcelona-El Prat, and Palma de Mallorca, handling the bulk of international air traffic into Andalucía. Over the past ten years passenger arrivals have grown by 95%, bringing 13+ million additional travellers to the Costa del Sol annually.
Marbella: A Lifestyle and Investment Powerhouse
With its glamorous reputation, world-class golf courses, designer shopping, fine dining and beachside living, Marbella remains a magnet for luxury tourism and high-end real estate investment. The town’s unique microclimate offers more than 320 days of sunshine a year, making it ideal for outdoor living and al fresco dining. In 2025, Marbella asking prices reached €5,410/m² — a new all-time high and a 9% annual gain — while Benahavís reached €5,205/m², both firmly established as luxury hotspots.
Holiday Rental Trends: Marbella & Malaga
Holiday rentals continue to be a strong investment option in both Málaga and Marbella, though 2025 marked a regulatory inflection point. Spain’s reform of the Horizontal Property Law (effective 3 April 2025) now requires explicit homeowners-association approval for any new tourist licence, while Marbella has restricted new licences in Centro Histórico, La Merced and Soho. The Junta de Andalucía has also deregistered more than 13,000 non-compliant tourist homes across the region. The net effect: existing licensed properties are increasingly scarce and command a structural premium. According to Idealista, Málaga still posts gross holiday-rental returns of 10%+ annually and retains its A+ vacation-rental rating.
Tourist Homes by Area: Where are the Rentals?
Understanding where tourist rental properties are most concentrated helps guide smarter investment decisions — whether you’re buying to let or already renting out your holiday home. The figures below reflect both demand and regulation trends, helping you identify saturated areas versus those with room for growth.
What does this mean for you?
Málaga City leads with the highest number of tourist homes but a relatively low saturation rate (2.86%), suggesting ongoing opportunities for well-located and well-managed properties. Marbella, Mijas and Benalmádena remain key markets, combining high tourist volume with established infrastructure. Benahavís stands out with the highest concentration relative to housing stock (8.60%), signalling a mature market in high demand. As Costa del Sol municipalities review their licensing frameworks under the 2025 reforms, knowing these figures helps investors stay one step ahead.
Costa del Sol: Long-Term Outlook
The Costa del Sol remains one of Europe’s top regions for property investment, particularly for rental income. With year-round sunshine, a booming tourism sector, and a growing expat community, it offers both lifestyle benefits and strong returns. Since 2020, long-term rental availability in Spain has dropped 61% while average rents have risen 40%. Málaga alone has seen a 55% rise in rental prices, with hotspots like Marbella following suit. This supply shortage, combined with rising demand and tightening tourist-licence rules, creates ideal conditions for landlords. Excellent infrastructure, international schools, top-tier healthcare and rich cultural life all contribute to high occupancy rates and long-term capital growth.
Practical Buying Guide
Buying a property in Spain as a non-resident follows a well-defined sequence of steps. While the specifics vary by buyer profile and property type, the framework below covers the path most of our clients walk between initial decision and key handover. Typical end-to-end timeline: 3–6 months.
2026 Market Outlook
Heading into 2026, the Costa del Sol market enters its first full year of materially lower financing costs since the 2022 tightening cycle began. The European Central Bank has cut its deposit rate eight times since June 2024, from 4.0% to 2.0%, before pausing in the second half of 2025 as eurozone inflation settled in line with target. Below we set out the three variables most likely to shape the year ahead.
- Financing conditions
The 200-basis-point easing in the ECB deposit rate has fed through to Euribor and to mortgage offers. With markets currently pricing one further cut as a low-probability scenario for 2026 rather than a base case, the financing backdrop is expected to remain accommodative without becoming materially cheaper. For property buyers, this argues for stable demand rather than a renewed surge — credit-driven purchases should hold near their elevated 2025 levels rather than spike further.
- Supply response
Housing starts in Malaga ended 2025 at 10,021 — the highest figure in over a decade, and 441% above the 2015 low. The lag between approval and completion typically runs 24–36 months, which means much of this pipeline will reach the market in 2026–2027. New-build supply should therefore ease, although prime coastal locations — Marbella, Estepona, Benahavís — will continue to face binding land scarcity that no permit cycle can resolve in the short term. Two-tier pricing dynamics are likely to widen further: strong appreciation in the prime coastal belt, more measured growth in the secondary band.
- International demand
The international segment carries the largest single piece of forward uncertainty. The continued working through of the UK non-dom reform, currency movements against the euro from the Nordics and the dollar, and the post-Golden Visa redistribution of UHNW activity will collectively determine whether foreign share sits at, above, or below the 39% maintained in 2025. Our base-case view, given the structural drivers above, is that foreign share remains in a 38–40% band, with a modest mix shift toward residency-led buyers and away from pure non-resident second-home purchases.