Updated: 11 November 2025
The Marbella luxury property market continues to stand out as one of Europe’s leading real estate destinations, drawing high-net-worth buyers from around the world. According to the Spanish Land Registry, more than 30% of all property sales in Marbella are made by international investors.
Strong demand is powered by the city’s year-round sunshine, cosmopolitan lifestyle, and solid infrastructure. High rental yields, excellent schools, luxury golf resorts, and a thriving cultural scene make Marbella a place where residents and investors thrive.
“The Marbella luxury property market thrives on global demand, ensuring long-term stability.”
How do Marbella property prices compare to nearby coastal cities?
Property prices in the Marbella luxury property market are higher than in neighboring towns such as Estepona and Fuengirola. In 2025, average prices sit at around €5,500 per m², compared to €3,400 in Estepona and €2,900 in Fuengirola.
| City | Avg. Price per m² | Market Demand Level | Buyer Profile |
|---|---|---|---|
| Marbella | €5,500 | Very High | Global investors, luxury buyers |
| Estepona | €3,400 | High | Retirees, mid-range investors |
| Benahavís | €4,200 | Medium-High | Golf and family-oriented buyers |
| Fuengirola | €2,900 | Medium | Budget-conscious, younger investors |
These higher prices reflect Marbella’s limited coastal land, prestige reputation, and consistently strong rental demand within the Marbella luxury property market.
What rental yields can investors expect in Marbella?
Rental yields in the Marbella luxury property market range between 4% and 7% annually. According to Quintessentia Property Advisors, beachfront apartments in Puerto Banús and the Golden Mile reach up to 7%, while villas in Sierra Blanca achieve around 4–5%.
Short-term holiday rentals outperform long-term lets due to Marbella’s steady stream of tourists. Occupancy rates remain high throughout the year, supported by both vacationers and digital nomads.
“Marbella offers some of the Costa del Sol’s strongest rental returns, especially in its prime areas.”
How do property taxes in Marbella compare with Estepona?
Tax policies across Andalusia are generally consistent, but Marbella’s higher property valuations result in slightly higher annual IBI costs.
| Tax Type | Marbella (2025) | Estepona (2025) |
|---|---|---|
| Property Transfer Tax | 7–10% | 7–10% |
| Annual IBI (per €1m home) | ~€1,200 | ~€950 |
| Rental Income Tax (EU) | 19% | 19% |
| Rental Income Tax (non-EU) | 24% | 24% |
Despite these differences, the Marbella luxury property market remains attractive because of its superior resale values and stronger rental returns.
Are foreign investors well protected when buying in Marbella?
Yes. Spain’s property laws are among the strongest in Europe. The Land Registry safeguards ownership rights, while legal checks confirm that properties are debt-free before purchase.
Foreign buyers must obtain an NIE (Foreigner Identification Number) to buy property, and local notaries ensure that contracts and taxes are handled correctly.
“Spain’s transparent legal system makes the Marbella luxury property market a secure environment for international investors.”
Which property types deliver the highest ROI?
Beachfront apartments and luxury villas dominate the Marbella luxury property market in terms of performance. Apartments near Puerto Banús and Marbella Old Town generate stable rental income, while villas in Golden Mile and Sierra Blanca show strong long-term appreciation.
Smaller apartments attract younger tenants and digital nomads, while high-end villas appeal to buyers seeking exclusivity and privacy.
“Beachfront homes continue to lead Marbella’s investment market, with demand exceeding supply,” reports Lucas Fox.
How stable is the Marbella property market in 2025?
The Marbella luxury property market remains one of the most resilient in the Mediterranean. Despite economic shifts, buyer interest stays strong among European, Middle Eastern, and North American investors.
Limited supply due to geography and zoning ensures price stability. Even in global downturns, Marbella experiences only mild corrections compared to other coastal markets.
“Marbella is now a year-round investment hub, not just a seasonal destination,” states Knight Frank.
How does lifestyle impact property demand in Marbella?
Lifestyle is the cornerstone of the Marbella luxury property market. With over 300 days of sunshine, world-class golf courses, Michelin-starred dining, luxury shopping, and top international schools, Marbella blends leisure and sophistication.
The city’s excellent healthcare, modern infrastructure, and proximity to Málaga Airport add further appeal. Many buyers invest not only for financial gains but also for a premium coastal lifestyle.
“Marbella’s lifestyle value drives both rental success and long-term capital appreciation.”
FAQs about Investing in Marbella
Is financing available for foreign buyers?
Yes. Spanish banks lend up to 70% LTV to non-residents, with 2025 mortgage rates averaging 3–4%.
Is the Golden Visa program still active?
Yes. Non-EU investors spending €500,000 or more on property qualify for Spain’s Golden Visa, offering residency and Schengen travel rights.
What are the key investment risks?
Risks include seasonal rental fluctuations, licensing regulations, and currency changes. Working with a property manager can mitigate these.
Which areas are best for investment?
Golden Mile, Puerto Banús, and Sierra Blanca lead the Marbella luxury property market for premium assets. Nueva Andalucía suits families, while East Marbella provides better entry-level options.
Are short-term rentals legal?
Yes, provided the property holds a VFT tourist license issued by the Andalusian government. Licensed homes achieve higher occupancy and compliance.
