Costa del Sol is one of Spain’s most sought-after regions for property investment, offering sun-soaked beaches, vibrant expat communities, and a mix of luxury and value. Whether you’re seeking a vacation home, a retirement retreat, or a rental investment, here’s what you need to know about buying property in 2025.
1. Why Choose the Costa del Sol?
- Market Strength: The Costa del Sol consistently outperforms other Spanish regions like Alicante or the Balearics in luxury property demand and price growth. Expect steady appreciation, especially in prime areas.
Prime areas like Marbella’s Golden Mile and La Zagaleta typically see 3-5% annual growth, outpacing Spain’s broader market (e.g., 2-3% in Alicante or Barcelona).
- Lifestyle Appeal: With over 300 sunny days a year, top-tier golf courses, marinas, and proximity to Málaga Airport, it’s a haven for relaxation and convenience.
- Buyer Diversity: You’ll join a global mix—Brits, Germans, Scandinavians, and increasingly Middle Eastern and American buyers—all drawn to the region’s charm.
Want to know what area is culturally best for you to join in? Get in touch and you’ll get best researched options from us immediately!
2. Where to Buy: Hotspots and Price Points
- Marbella:
- Golden Mile & Puerto Banús: Ultra-luxury villas and apartments (€1M-€25M). Think sea views, private pools, and exclusivity.
- Why Buy Here?: Prestigious addresses with 3-5% annual price growth.
- Estepona:
- Price Range: €300K-€5M, with new developments booming.
- Why Buy Here?: Affordable luxury, quieter vibe, and modern builds with amenities like rooftop terraces.
- Benahavís:
- La Zagaleta: Gated estates for the ultra-wealthy (€5M-€30M).
- Why Buy Here?: Privacy, mountain views, high-end likeminded people, and top-tier security.
- Sotogrande:
- Price Range: €800K-€10M, often golf or marina-front properties.
- Why Buy Here?: Upscale community with a yachting and sports focus.
- Tip: If budgets are tighter, explore Mijas or Fuengirola for value buys (€200K-€800K) with strong rental potential.
Free Guide Alert
Costa del Sol is unexpectedly diverse, and it’s impossible to choose the location for your purchase purely by browsing real estate ads.
That’s why we created a FREE GUIDE “100 things you must know before buying real estate in Costa del Sol”.
Free Guide Alert
Costa del Sol is unexpectedly diverse, and it’s impossible to choose the location for your purchase purely by browsing real estate ads.
That’s why we created a FREE GUIDE “100 things you must know before buying real estate in Costa del Sol”.
3. Property Types to Consider
- Luxury Villas: Perfect for privacy seekers. Look for 4+ bedrooms, pools, and sea or golf views (€1M+).
- New-Build Apartments: Off-plan options in Estepona or Marbella offer modern designs—think open-plan kitchens and energy-efficient tech (€300K-€1.5M).
- Renovation Projects: Traditional fincas or townhouses in inland villages like Ojén can be flipped for profit or personalized (€150K-€500K).
- Buyer Tip: Match your goal—lifestyle, resale, or rental income—to the property type.
4. Investment Potential
- Capital Gains: Prime areas like Marbella’s Golden Mile often see 4-6% annual price increases, meaning a €2M villa could gain €100K+ yearly.
- Example: Buy now, sell in 5 years, and pocket 20-30% profit (based on historical trends).
- Rental Income:
- Short-Term: Vacation rentals in Marbella yield 5-8% (e.g., €200/night for a 3-bed apartment).
- Long-Term: Estepona offers 4-6% yields for stable cash flow.
- Golden Visa: Invest €500K+ and gain Spanish residency—a perk for non-EU buyers (e.g., Americans, Middle Eastern investors).
- Pro Move: Snap up off-plan properties at pre-construction prices for instant equity.
5. What to Watch Out For
- Limited Supply: High-demand areas like Puerto Banús have scarce listings, increasing prices. Act fast on good deals. We will help you prepare before entering into the negotiation phase: either local mortgage offers from 17 institutions to choose from, a tax optimisation plan, or deal structuring—get in contact, and you will get all the advice for free.
- Rental Rules: Málaga and other councils are tightening short-term rental laws (e.g., requiring licenses). Check local regulations if you plan to rent.
Rules are constantly changing – ask us before deciding on your favourite properties, as they might be impossible to rent out if that’s what you are looking for!
- Buyer Tip: You need one agent – all of them get access to all the listings. But we also have secret deals that are off the market – you might want to consider them for attractive pricing and great locations! You need to start working with an agent and a local lawyer from day one, to navigate contracts and compliance—Spain’s property process can be tricky.
6. Who’s Buying and Why
- Retirees (50-70): Northern Europeans love the Costa del Sol for its climate and healthcare access. They favor single-story homes or properties near amenities.
- Best Fit: Gated communities in Mijas or Estepona.
- Younger Buyers (30-45): Tech entrepreneurs, cryptocurrencies specialists, and remote workers seek modern homes with fast internet and coworking vibes.
- Best Fit: Probably close to the best coworking spaces and international, English speaking communities.
- Nueva Andalucía: Growing number of coworking spaces near Puerto Banús, like the Centro House
- Marbella Center: Several options, like the Pool.
- Estepona: Estepona Coworking with affordable pricing
Many new residential developments now include co-working areas as standard amenities, reflecting the growing digital nomad and remote worker community.
- Best Fit: Probably close to the best coworking spaces and international, English speaking communities.
- Investors: High net worth individuals from the Middle East or North America target luxury for residency or rental returns.
7. Practical Tips for Buyers
- Budget Smart: Factor in extras—10-13% of the purchase price covers taxes (IVA or ITP), notary fees, and legal costs.
- Visit First: Tour properties in person or via virtual viewings. Drone footage often best showcases layouts and views. We can also help you get a digital plan of the property’s sun exposure. Just ask us!
- Negotiate: Off-plan deals or motivated sellers (e.g., post-Brexit Brits) might offer 5-10% discounts.
Let us negotiate for you, as we know the actual price dynamics, and we get tens and hundreds of thousands of euros off the asking price weekly.
- Top Market: The Costa del Sol blends lifestyle and investment potential, with steady growth in prime spots.
- Best Areas: Marbella for luxury, Estepona for value, Benahavís for exclusivity.
- Opportunities: Lock in capital gains, rental income, or residency with a €500K+ buy.
- Act Now: Supply is tight, and prices are rising—secure your dream home or investment before options shrink.
