Over the past decade, the Costa del Sol has firmly established itself as one of the world’s most coveted residential destinations. Once a seasonal retreat for high-net-worth buyers, the region has evolved into a major economic powerhouse, now contributing an impressive 10% of the provincial GDP, according to Pure Living Properties’ Market Report 2025–2026.
The report reveals that six out of ten new jobs created in the renowned ‘Golden Triangle’ of Marbella, Benahavís and Estepona are directly or indirectly linked to the premium property sector, underscoring the market’s pivotal role in the local economy.
Each luxury villa, averaging 1,500 m², engages more than 50 professionals during construction—from architects and engineers to carpenters, landscapers and smart-home specialists. Once complete, these properties generate 6 to 10 permanent roles, including management, cleaning, gardening, security and maintenance. Altogether, the sector currently supports over 2,500 direct jobs and 5,500 indirect positions.
Javier Nieto, CEO of Pure Living Properties, explains:
“The high-end residential market is a true economic engine for Marbella and its surroundings. Each project mobilises dozens of professionals and activates a network of complementary sectors—from hospitality and retail to automotive, technology and specialised services. This ecosystem fosters stable employment, attracts investment, and strengthens the Costa del Sol’s position as one of Europe’s most competitive destinations.”
Record-breaking prices
Luxury property prices have reached historic highs. In September 2025, prime properties were priced at approximately €5,400/m² in Marbella and Benahavís, and €4,057/m² in Estepona—representing year-on-year increases of 9%, 16.2% and 13.3%, respectively.
“2025 has been the year Marbella proved that true luxury lies in stability,” notes Nieto. “We have achieved an unparalleled balance between profitability, sustainability and quality of life, setting a benchmark for Europe.” The outlook for 2026 points to stable, sustainable growth with significant economic impact.
A surge in international demand
The profile of buyers has diversified significantly. Alongside traditional markets such as the UK, Germany and Scandinavia, demand is now growing from the United States, Canada and Gulf countries, supported by direct flights from Málaga to New York and Doha.
UK buyers lead, representing 22% of foreign purchasers, followed by Latin America and Germany at 15% each, and the Nordic countries. Belgium, the Netherlands and Luxembourg account for 12%, with the US at 10% and the Gulf region at 8%, reflecting the growing international reach of the Costa del Sol’s luxury market.
Moreover, international buyers increasingly seek permanent residences rather than second homes, drawn by the region’s exceptional climate, legal stability, international schools and top-tier services—positioning Marbella as a 12-month residential destination.
Looking ahead to 2026
Following a record-breaking 2025 in both prices and international demand, the market is expected to see selective stabilisation in 2026: moderate growth in areas where high-quality supply remains scarce.
Year-on-year price forecasts are:
- Marbella: 2–6% increase
- Benahavís: 3–5% increase
- Estepona: 4–7% increase
- Sotogrande (booming area): 3–6% increase
With its unparalleled lifestyle offering, thriving luxury property market, and strong international appeal, the Costa del Sol continues to be a magnet for discerning buyers seeking both investment and lifestyle excellence.
Luxury homes for sale on the Costa del Sol