The luxury real estate market on Spain’s Costa del Sol has reinforced its strength in the first half of 2025, despite a global slowdown in property activity. According to the latest report by Keller Williams, the Málaga hotspots of Marbella and Benahavís are leading the way, fuelled by strong foreign demand and a limited supply of homes in the most exclusive segments.
At a time when many major markets are showing signs of a property cooling, the Costa del Sol stands out as one of southern Europe’s most resilient and sought-after destinations for prime real estate. Marbella, in particular, has once again positioned itself as a strategic hub for high-net-worth investors and discerning buyers from around the world.
Alfonso Jiménez, National Head of Keller Williams Luxury and a specialist in Marbella’s iconic Golden Mile, highlighted that transaction volumes in early 2025 have surpassed last year’s figures, reflecting a clear upward trend in both sales and prices. He attributes the area’s continued appeal to four key factors: “Quality of life, security, international connectivity and the professionalism of the sector are what make Marbella stand out in the European luxury market.”
Yet this growth comes with a notable challenge: a shortage of available properties, particularly new developments and turnkey homes in prime locations. This limited supply is putting additional upward pressure on prices, especially in high-demand enclaves such as the Golden Mile, where demand consistently outstrips availability.
Benahavís: consolidating after a boom cycle
Just a few kilometres inland, Benahavís is following a slightly different trajectory. After several years of rapid expansion, 2024 saw record construction figures. In the first half of 2025, however, the pace has naturally eased, particularly in new developments.
Keller Williams analysts describe this as a “natural correction” after an exceptionally strong cycle, rather than a slowdown. Ignacio Lacruz, Director of Operations and Projects at Keller Williams, explains: “These adjustment periods act as healthy stabilising mechanisms, strengthening prime markets over the long term.”
International demand remains the key driver
Across Marbella and Benahavís, international buyers continue to drive the market. The Costa del Sol’s premium enclaves have established themselves as a benchmark for quality, exclusivity and lifestyle, attracting buyers from the UK, Germany, the Netherlands and the Nordic countries in particular.
Marbella’s Golden Mile remains the undisputed reference point on the Málaga coastline, underpinning steady interest from investors and private buyers ready to pay premium prices for exceptional locations, world-class amenities and an enviable Mediterranean lifestyle.
A favourable macroeconomic climate
The European Central Bank’s recent move to stabilise interest rates at lower levels is set to further stimulate demand in the second half of 2025. However, Keller Williams notes that the luxury segment is less influenced by credit fluctuations and more shaped by confidence, institutional stability and legal security.
“In the luxury market, access to credit is rarely the decisive factor,” the company states. “What matters most is a sense of stability, strong legal guarantees and the area’s social and economic appeal.”
Outlook for the prime market
Looking ahead, the market faces a few strategic challenges — notably a lack of new build and mounting price pressures in the most sought-after locations. Even so, the Costa del Sol’s firm position as a premium international destination, backed by solid local institutions, suggests a continued positive growth trajectory for the luxury property segment.
As Keller Williams concludes, “The Costa del Sol’s luxury property market is not just weathering the global slowdown — it is thriving, powered by international demand, institutional confidence and the enduring strength of its offer.”