Monday, 10 November 2025, 17:07
The average prices of luxury homes in the most exclusive areas of the Costa del Sol are at record levels according to a report published on Friday 7 November by a leading property company on the coast, which puts the average price of prime Marbella property at 5,410 euros per square metre; close to the same 5,400 euros in Benahavís; and 4,057 euros in Estepona.
These figures, the report notes, “place the Costa del Sol in the same league as international destinations such as Miami, Dubai or the Côte d’Azur”, although, it adds, with a “distinctive component”: “An authentic Mediterranean identity and a more balanced local economy”. These record levels have been reached after an annual increase of 9% in Marbella, 13.3% in Estepona and over 16% in Benahavís.
Looking ahead to 2026 stabilisation of prices in the more popular areas and moderate growth in emerging areas such as Estepona or Marbella East, with price increases ranging between 3% and 6% are predicted.
5,410
euros per square metre
is the average price of prime property in Marbella after rising by 9% in the last year.
According to Pure Living Properties the Costa del Sol and in particular Marbella, is characterised by a progressive stabilisation of prices, a more and more carefully curated offer and a more demanding and informed international buyer. Furthermore the report highlights that Marbella town hall is moving towards a new urban planning model, with a general development plan now in the process of being approved before the end of the legislature and which prioritises efficiency and urban planning agility, while developers such as Sierra Blanca Estates are promoting more than 270 subsidised housing units, which, according to the report, “aligns private activity with the social need for affordable housing”.
According to the document, based on municipal data, urban development licences grew between 15% and 30% in the first half of the year and their economic value exceeds 350 million euros between hotel and residential projects.
The report states that Marbella’s new urban development plan seeks to align private activity with the social need for affordable housing.
Meanwhile, Benahavís continues to be synonymous with exclusivity, with enclaves such as La Quinta and La Zagaleta, where prices exceed 7,500 euros per square metre. Meanwhile Estepona is consolidating its position as a new prime residential destination of international reference, as a result of the urban transformation it has undergone in recent years.
“Estepona is today the clearest example of urban modernisation on the Costa del Sol. The town has known how to grow with balance, improving its infrastructures and its coastline. The international buyer no longer sees Estepona as an alternative, but as a main option,” emphasises Carlos Rodríguez, CEO of Sierra Blanca Estates, as the report by Pure Living Properties, a consultancy firm, gathers opinions from the province’s real estate sector.
Rejuvenation of buyers
Buyers in the luxury segment in Marbella and the surrounding area are predominantly international and between the ages of 40 and 60, although we are seeing an increase in the number of buyers aged between 35 and 45, many of whom are entrepreneurs, executives, high-level sports people and professionals. Above all, they are looking to acquire a permanent residence in a secure, high quality environment, diversify their wealth and enjoy Mediterranean living with a direct flight connection.
22%
of international buyers are British
They are the main players in the operations, followed by northern Europeans (18%) and Latin American (15%), but 10% are already American and 8% from the Persian Gulf countries.
As for the most common nationalities of buyers, they continue to be British, Scandinavian, German, Dutch and Belgian, although there are emerging markets, such as the United States and Canada (thanks to the direct New York-Malaga flight), Arab Emirates, Saudi Arabia and Kuwait, as well as Eastern European countries and South America.
A third change in demand reflected in the report is that the buyer who previously purchased a home as an investment or seasonal residence is now looking to live all year round in Marbella in particular, a town that has become a permanent residential destination. In addition, today’s buyer also wants a property where they can move in and start enjoying themselves from day one.
GDP and employment
The report also highlights the positive effects of the luxury residential market on the economy as a whole: to begin with, it puts its weight in the provincial GDP at 10 per cent, and goes on to point out that it generates six out of every ten new jobs in the area between Marbella, Benahavís and Estepona, either directly or indirectly. “Each villa or luxury development mobilises dozens of professionals (architects, engineers, builders, interior designers, technicians and associated services), which forms a transversal economic fabric that supports thousands of skilled jobs,” justifies the report. According to data from the Association of Businesses for High Quality Housing, this sector currently generates more than 2,500 direct jobs and 5,500 indirect jobs in Marbella and its surroundings.