LUXURY REAL ESTATE MARKET IN MARBELLA ANALYSIS 2024 AND FORECAST FOR 2025

Introduction

Marbella strengthens its position as a premier international luxury destination

The year 2024 marks a milestone for Marbella, as it consolidates its international image as a premier luxury residential destination. This status has been bolstered by the prestigious title of “Best European Destination to Visit”, awarded by the platform European Best Destinations. Marbella surpassed renowned international hubs such as Monaco and Malta, which ranked second and third, respectively. This accolade highlights 20 outstanding locations, including Geneva, Madeira, Florence, and London.

Marbella received a record-breaking total of 149,192 votes, becoming the first Spanish city to achieve this recognition, after securing the second position two years ago.

The delivery of the first branded residence projects, such as EPIC Marbella by Fendi Casa, and progress on others like Design Hills by Dolce&Gabbana, Karl Lagerfeld Villas, Elie Saab Villas Marbella, Tierra Viva By Lamborghini, and Marea by Missoni, further underscores the commitment of major international brands to Marbella. This positions the city on par with global luxury hubs such as Miami and Dubai.

2024 has also witnessed a transformative shift in Marbella’s culinary scene. Renowned international groups have significantly enhanced the quality and variety of gastronomic offerings, introducing high-end restaurants, innovative concepts, and unique experiences that add significant value. New culinary hotspots include CHANCA by Coya, Cipriani, Tatel, Zengo (the first Spanish restaurant by American chef Richard Sandoval), and Gaia, among others.

In the real estate sector, property sales in Marbella and the broader “Golden Triangle” have grown by over 13% during the first three quarters of 2024. This growth is particularly evident in exclusive areas where demand continues to exceed supply, especially for new-build projects. Simultaneously, property prices have also risen, with the average price in Marbella now exceeding €4,900/m². Emerging trends include younger buyers and increased interest from markets such as the United States, shaping the evolution of the luxury real estate market.

This thriving environment has solidified Marbella’s position on the global map as one of the world’s best places to live year-round, making it an attractive option for residential investment.

Clarification on Average Prices

All prices mentioned in this report represent average values calculated from data within the luxury real estate market. However, it is essential to note that actual property prices can vary significantly based on multiple factors, such as specific location, views, property condition, residential development, and area demand. These variations reflect the diverse and dynamic nature of the luxury market on the Costa del Sol.

Purpose and Scope of the Report

The purpose of this report is to provide a comprehensive assessment of the luxury real estate market in Marbella during 2024, with a special focus on the key dynamics influencing sector growth and projections for 2025. This report is produced by Pure Living Properties, a leading luxury real estate agency on the Costa del Sol, to offer its clients, investors, and other key market stakeholders an informed guide for strategic decision-making in the current context.

Pure Living Properties is a standout player in Marbella’s luxury market, specialising in exclusive areas such as the Golden Mile, Puente Romano, and emerging regions like Estepona and Finca Cortesín in Casares. This report aims to analyse current market trends and shifts in buyer profiles, as well as to explore new opportunities.

The report covers a detailed analysis of sales, prices, and demand in the luxury sector, examining the challenges and opportunities facing Pure Living Properties in a rapidly expanding market. Additionally, it explores the effects of sustainability, technological innovation, and legislative changes on real estate supply and demand.

“Aligned with the values of Pure Living Properties, this report aspires to be an essential tool for those seeking to stay ahead in Marbella’s luxury real estate sector,” says Javier Nieto, CEO of the company.

Real Estate Market Analysis in 2024

Market Performance Overview in 2024

By late 2024, figures indicate a record year for the luxury real estate market, characterised by increased sales, rising prices, and the emergence of new high-income markets.

Between January and September, a total of 117,942 properties were sold in Andalucía—a 3.8% decline compared to 2023. However, interest in new construction properties grew by 9.8%, reaching 26,726 sales. Meanwhile, resale properties remained dominant despite a 7.2% drop, with 91,216 transactions. During Q3 2024, Andalucía accounted for 19.85% of all property transactions in Spain, totalling 32,554 operations—the highest in the country.

At the national level, home sales experienced a quarterly increase of 13.9%, with 166,609 transactions recorded. This represents an 18.87% year-on-year growth. Both new builds (32,692 transactions) and resales (133,917 transactions) contributed positively, with quarterly increases of 12.1% and 14.4%, respectively.

The dynamism of the Costa del Sol has significantly contributed to Andalucía’s strong performance. According to the Spanish Registrars, Málaga stands among the provinces with the highest number of property sales over the last year, alongside Madrid, Barcelona, Alicante, Valencia, and Seville.

Have Luxury Property Sales Increased in the Golden Mile?

In 2024, the luxury real estate market in Marbella, Estepona, and Benahavís—known as the “Golden Triangle”—has seen robust growth. During the first half of the year, sales of luxury properties (valued at over €2 million) increased by 19.47% compared to 2019, demonstrating a strong post-pandemic recovery. This trend has been bolstered by international demand, particularly from buyers in the UK, Sweden, the Netherlands, and a growing presence from Eastern Europe and the United States.

Luxury property sales have reached unprecedented levels. In Marbella, transactions grew by 20% compared to 2023, while Estepona and Benahavís saw a remarkable 120% growth over the past 16 years. These figures consolidate the Costa del Sol as the epicentre of Europe’s luxury residential market.

Prices in exclusive areas have continued to rise. In Marbella, the average price per square metre for luxury properties is now €4,812, with beachfront properties significantly exceeding €30,000/m². This reflects the high demand and limited supply driving price increases across all segments.

In summary, the luxury real estate market in the Golden Triangle has delivered outstanding performance in 2024, with strong demand, rising prices, and growing international interest. Projections for late 2024 and early 2025 remain highly optimistic, with expected investments exceeding €800 million.

Rising Prices and Demand Growth

Nationally, housing prices maintained a steady growth rate during Q3 2024, with a quarterly increase of 2.8%. Resale properties were the main drivers, showing a 3.3% quarterly increase, compared to a 1.1% rise for new builds.

In Málaga province, prices rose by 5.8% in the last quarter, ranking among the highest in Spain. Key provinces with the highest average housing prices during Q3 included Illes Balears (€3,644/m²), Gipuzkoa (€3,586/m²), Madrid (€3,552/m²), Barcelona (€2,980/m²), and Málaga (€2,912/m²).

The luxury real estate market in Marbella also maintained its upward trend, driven by rising prices and strong demand, particularly from international buyers. Spain remains an attractive, profitable destination for investment.

How Much Have Property Prices Increased in Marbella?

“Prices in Marbella have risen significantly, particularly over the past two years, but they remain much lower than in comparable international destinations such as Miami. This makes the Costa del Sol highly profitable and attractive for international clients, whether they are large-scale investors or families seeking a second or third residence,” notes the CEO of Pure Living Properties.

As of September 2024, provincial housing prices increased by 11.9% year-on-year, reaching €3,397/m²—the highest figure ever recorded. In Marbella, prices have risen by 13.2% over the past 12 months, averaging €4,961/m², just 0.2% below the historic peak (€4,972/m²) reached in August this year. In Benahavís, the average property price hit a record €4,644/m² in September, an 8.2% rise compared to the same period in 2023. Similarly, Estepona reached its highest-ever average price of €3,582/m², an 11.6% increase year-on-year.

A notable trend this year is the expansion of the luxury market westward along the Costa del Sol, nearing the boundary with Sotogrande in Cádiz province. This shift has also driven price increases in emerging locations like Casares and Manilva.

What Is the Price of a Luxury Villa in Finca Cortesín?

In Casares, home to the exclusive Finca Cortesín development, housing prices rose by 18.16% during the first nine months of 2024, reaching €2,669/m²—just 1.7% below the historic peak (€2,715/m²) recorded in August. Manilva, the westernmost town on the Costa del Sol, registered a record €2,346/m² in September, up 9.6% year-on-year.

Marbella and Benahavís continue to record the highest average property prices in the province and Andalucía, with prime locations such as the Golden Mile or La Zagaleta commanding even higher values. In Marbella, the most expensive area remains the Golden Mile, with an average price of €6,329/m² (+10.4%), followed by Nueva Andalucía (€5,404/m², +10.4%) and Las Chapas–El Rosario (€4,740/m², +15.7%). Prices skyrocket in highly coveted locations like Puente Romano, where they exceed €30,000/m², or Sierra Blanca, where they reach up to €16,000/m².

In Benahavís, the most expensive area remains La Zagaleta and El Madroñal, with an average price of €6,583/m², just 0.3% higher than last year and 6.0% below the historic peak (€7,002/m²) reached in February. Other exclusive areas such as La Quinta (€5,312/m², +1.2%), Los Flamingos (€4,554/m², +3.1%), and Monte Mayor (€4,500/m², +5.4%) also reflect sustained growth. In the most exclusive villas in these locations, prices exceed €15,000/m².

These price increases in strategic areas reflect the high demand for prime properties, often exceeding existing supply, which continues to push values higher and suggests that this upward trend will persist into 2025.

Impact of the Global Economic Situation on Marbella

The luxury real estate market in Marbella has shown remarkable resilience in the face of global economic turbulence during 2024. Factors such as inflation, rising interest rates, and the energy crisis stemming from the war in Ukraine have impacted real estate sectors worldwide. Yet, Marbella has not only weathered these challenges but has also positioned itself as a safe and profitable investment refuge.

Strong International Demand

One of the key factors that have shielded Marbella from global economic fluctuations is the steady demand from international buyers. The city continues to attract high-net-worth investors, particularly from the UK, Sweden, and the Netherlands, as well as emerging markets like the United States and Eastern Europe. This demand has largely offset the negative effects of inflation and rising interest rates seen in other parts of Spain or even within Málaga province.

Impact of Interest Rates

Unlike other real estate segments, Marbella’s luxury market has not been significantly affected by the European Central Bank’s (ECB) interest rate hikes. Less than 10% of transactions in this sector are mortgage-financed. High-net-worth international buyers typically pay the full amount in cash, reducing the market’s sensitivity to interest rate fluctuations.

Investment in a Safe Haven

Global economic uncertainty has driven many investors to seek safe havens to protect their capital. Marbella has emerged as one of these destinations. The city’s security, high quality of life, attractive yet rising property prices, and market stability have convinced many investors to view property purchases in Marbella as a hedge against inflation and a safe way to diversify their real estate portfolios.

Impact of the War in Ukraine

The ongoing conflict in Ukraine has increased demand from Eastern European buyers seeking a stable and secure location in southern Europe. Marbella has seen a rise in buyers from Ukraine, Poland, and other countries in the region, adding to the growing list of nationalities interested in luxury properties along the Costa del Sol.

In summary, Marbella’s luxury real estate market remains robust and stable despite global economic challenges, thanks to strong international demand and minimal reliance on mortgage financing.

Global Inflation and Energy Crisis

While inflation and energy costs have impacted purchasing power in many markets, Marbella’s luxury sector has been less affected. Property prices in the region have continued to rise, driven by limited supply and growing demand for homes with high sustainability standards. This trend underscores the value placed on long-term investments in the Golden Triangle.

Overall, the global economic situation’s impact on Marbella has been mitigated by its international appeal, the strength of luxury buyers, and low dependence on mortgage financing. These factors have allowed Marbella to maintain its position as a strong and stable luxury market despite economic challenges in other regions.

Golden Visa’s Impact on Luxury Properties in Marbella

Minimal Impact of Golden Visas

One of the most notable developments in the luxury sector in 2024 has been the Spanish Government’s intent to eliminate the Golden Visa. This residency permit was previously granted to non-EU nationals investing over €500,000 in real estate, subject to certain conditions.

The announcement, made by Prime Minister Pedro Sánchez in April this year, drew significant attention to the Costa del Sol, a premier luxury destination for international investors. However, the news has had little tangible impact on the real estate market, as less than 1% of total transactions benefited from this measure.

Since the Golden Visa’s introduction in 2013, approximately 10,000 permits have been issued nationwide, 96% of which were tied to real estate investments exceeding €500,000. The majority of beneficiaries come from countries like China, Russia, the UK, and the US. By September 2023 alone, 589 visas were granted under this scheme.

“Considering the data on visas issued over the years and the origin of applicants, we predict that the new Golden Visa policies will have minimal impact on the premium real estate market in which Pure Living Properties operates. However, it may harm Spain’s international image and prompt some investors to consider other destinations,” says Javier Nieto.

Buyer Behaviour in 2024

In 2024, buyer behaviour in Marbella’s luxury real estate market has evolved significantly, reflecting new trends and a diversification of buyer profiles. In addition to traditional European investors, there is growing interest from younger generations, including entrepreneurs and digital professionals seeking quality of life and properties suited for remote work.

New Buyer Profiles in the Luxury Market

The luxury real estate market in Marbella has experienced a significant shift in buyer profiles in 2024, driven by new wealth and global trends. These emerging profiles, fuelling demand for high-end properties, are notably linked to technological sectors and focused on sustainability and quality of life.

Young Fortunes in Technology and Cryptocurrency

A particularly noteworthy change is the rise of young investors, many under 30, coming from tech and cryptocurrency sectors. This profile represents approximately 10% of luxury buyers. These investors seek highly customised properties equipped with the latest technology, such as advanced home automation systems, solar panels, and features promoting sustainability and energy efficiency. Popular areas among this demographic include La Zagaleta and Sierra Blanca.

Elite Athletes

Another growing profile is that of elite athletes who have found Marbella the perfect place to establish their residence. These buyers prioritise spacious properties with large outdoor areas, gyms, wellness zones, and a private and secure environment. In 2024, around 8% of luxury property purchases were made by high-level athletes attracted by the Costa del Sol’s climate and sports facilities. Branded residences have garnered significant interest among this buyer segment.

Erling Haaland: The Norwegian footballer, a Manchester City striker, purchased a villa in the exclusive Nagüeles area in 2022, valued at approximately €6.5 million. He has also shown interest in becoming a shareholder of Marbella FC and exploring other high-end real estate projects.

Novak Djokovic: The Serbian tennis player owns a mansion in Sierra Blanca valued at over €11 million. The property features nine bedrooms, eight bathrooms, a swimming pool, and a private tennis court.

Cristiano Ronaldo: The Portuguese footballer acquired a villa in La Resina Golf & Country Club in Estepona, near Marbella. The property, valued at €1.5 million, boasts modern design and luxurious facilities, including a pool and expansive gardens.

Rafa Nadal: In 2024, the Spanish tennis player launched Palya Invest with entrepreneur Abel Matutes, investing over €200 million to build luxury villas and apartments in Marbella and Estepona. The project includes 50 beachfront homes in Estepona and 40 properties in Nagüeles, Marbella.

Digital Nomads and Remote Workers

The rise of remote work has significantly impacted the luxury real estate market in the Golden Triangle. Many young buyers, particularly those in technology and design sectors working for global companies, are choosing to relocate to the Costa del Sol. They are attracted by the region’s climate, quality of life, connectivity, and diverse cultural and recreational options, particularly in Málaga. These buyers seek villas or apartments with home offices and expansive outdoor spaces, allowing them to balance work and leisure in a natural, relaxed environment.

This demographic favours properties in residential areas close to urban centres, reflecting their preference for accessibility and community amenities.

Investors Focused on Sustainability and Eco-Friendly Properties

Interest in sustainable and energy-efficient properties has grown notably in 2024, driven by buyers increasingly conscious of environmental issues. These investors prioritise homes with an “A” energy certification, equipped with solar panels, waste management systems, and eco-friendly construction materials.

Marbella has quickly adapted to this demand, with numerous developments incorporating sustainability as a key selling point.

International Families Seeking Permanent Residences

Marbella has evolved from being solely a summer destination to a year-round residential hub. Increasingly, international families are opting to establish permanent homes in the Costa del Sol. They value the region’s high-quality education options, which include some of Spain’s best international schools, as well as its healthcare facilities, connectivity, and unparalleled lifestyle.

Approximately 25% of luxury property buyers in the Costa del Sol in 2024 acquired homes with the intention of living there year-round. This trend has been steadily growing, shifting the focus from second homes to permanent residences.

Pre-pandemic, most luxury buyers purchased properties for vacation use or rental investment. However, since 2020, remote work opportunities have significantly altered this behaviour.

Emerging Markets

Buyers from emerging markets such as China, the UAE, the US, and Latin America have shown growing interest in Marbella’s luxury real estate. These investors are drawn to high-yield investments and premium properties with panoramic views and prime locations.

In summary, 2024 has seen younger, more diverse, and globally connected buyer profiles, emphasising technology, sustainability, and quality of life. These new trends have significantly reshaped the luxury market in Marbella, aligning with global shifts in lifestyle and investment priorities.

Nationalities and Emerging Markets

At a national level, foreign demand for housing has risen both in absolute and percentage terms. The share of foreign buyers reached 14.85%, maintaining its high historical range with a slight quarterly increase of 0.01 percentage points. Leading nationalities include British (8.52%), Germans (6.43%), Moroccans (5.46%), Poles (5.32%), Italians (5.25%), French (5.23%), Romanians (5.13%), and Dutch (5.03%).

In nine autonomous communities, the share of foreign buyers increased, with the highest proportions recorded in Illes Balears (32.5%), Comunidad Valenciana (28.45%), Canary Islands (27.25%), Murcia (24.68%), Catalonia (16.79%), and Andalucía (14.31%).

The high-end Costa del Sol market presents a different scenario, where over 90% of luxury property transactions involve foreign investors. A key trend shaping the sector is the diversification of investor markets. While traditional buyers, such as those from the UK and Scandinavia, still dominate, emerging markets are playing an increasingly important role.

Traditional Dominant Nationalities

British buyers remain the primary foreign investors in the Costa del Sol, accounting for around 18.5% of luxury transactions between January and September 2024. Despite Brexit-related uncertainties, the UK market continues to see Marbella as an attractive destination for both investment and permanent residence. Swedish (10.7%) and Dutch (8.5%) buyers are also drawn by the region’s climate, quality infrastructure, and exclusive properties in areas like La Zagaleta or Sierra Blanca.

Growth of US and Canadian Buyers

A significant trend this year is the increase in American buyers, with purchases rising by 34% compared to the previous year. Improved direct flight connections between Málaga and New York have facilitated this surge, drawing more US buyers to invest in luxury properties in Marbella, particularly in exclusive areas like Sierra Blanca and La Zagaleta.

Canadian buyers have also shown growing interest, further diversifying the market. While specific statistics are limited, there is a noticeable upward trend in high-end property purchases by Canadians, supported by competitive flight options and quality services from airlines such as Air Canada.

The increasing presence of investors from the US and Canada reinforces Marbella’s reputation as a prime destination for international luxury investment.

Buyers from the Middle East and the UAE

Buyers from the Middle East, particularly the UAE, have also increased their presence in Marbella’s luxury real estate market. This rise has been facilitated by direct flight connections between Málaga and Dubai, solidifying the Costa del Sol as a preferred destination for Gulf investors. These buyers primarily seek high-end villas with exclusive services such as private security, spas, and direct beach access, favouring locations like the Golden Mile and Puerto Banús.

Emerging Markets in Eastern Europe

Interest in Marbella from buyers in Eastern Europe, particularly from Poland, Ukraine, and the Czech Republic, has grown significantly in recent years. Instability in their home regions has driven many of these investors to view Marbella as a secure and stable investment option. Marbella’s appeal as a permanent residence for families and entrepreneurs looking for a high standard of living continues to attract more buyers from these areas.

In summary, Marbella’s international luxury real estate market is becoming increasingly dynamic, bolstered by buyers from the US, the Middle East, and Eastern Europe. These markets continue to shape Marbella as a global luxury destination with a diverse and growing investor base.

Key Locations of Interest

The luxury real estate market has been firmly established in Marbella for decades, with iconic areas such as Benahavís also playing a key role. However, due to factors like limited land availability in these municipalities and the streamlined bureaucracy of towns like Estepona, the market is expanding westward along the Costa del Sol. This trend is even more evident in 2024, with major projects emerging in Estepona’s urban centre and Finca Cortesín in Casares.

Consolidated Luxury

The first luxury villas in Marbella began to be constructed in the 1950s when the city began to attract international elite. One of the first developments was the Golden Mile, a stretch connecting Marbella to Puerto Banús. This area attracted celebrities and aristocrats from Europe, sparking the construction of exclusive properties.

Marbella Club, founded in 1954 by Prince Alfonso of Hohenlohe, became the nucleus for luxury real estate development in the city. Following this project, areas such as Sierra Blanca and Puente Romano became established as some of the most exclusive locations on the Costa del Sol.

Throughout the 1960s and 1970s, Marbella continued to develop as a luxury destination, attracting European elites and major international figures from the film and political sectors, further consolidating its reputation as an exclusive place to live and vacation. In the 1960s, the area of Los Monteros was developed, attracting high-level buyers due to its proximity to the sea, tranquillity, and access to exclusive services.

La Zagaleta

In the early 1990s, the luxury market expanded into Benahavís with the creation of La Zagaleta, one of Europe’s most prestigious and exclusive residential areas. Initially a private hunting estate belonging to Saudi magnate Adnan Khashoggi, the property was sold after his bankruptcy in the 1980s and transformed into one of the most sought-after urbanisations in the region.

Located in the hills of Benahavís, just 15 minutes from Marbella, La Zagaleta is renowned for its extreme privacy, advanced security measures, and high-end facilities, including two private golf courses, an equestrian club, and a heliport. Villas in this area can exceed €20 million, and demand consistently outstrips supply, particularly for new developments and sea-view plots.

These premium locations, some with over 60 years of history, remain highly consolidated in the market, with prices among the highest in the country. Investor interest continues to grow year after year, making them highly profitable for buyers.

What Are the Most Expensive Areas in Marbella?

The Golden Mile

The Golden Mile remains the most coveted location for investors seeking the high-level lifestyle Marbella offers. This year, the area has been further strengthened with new projects such as fine-dining restaurants, luxury residential developments, and entertainment spaces like Forum.

This dynamism is increasing interest and sales in the area, leading to rising prices that reached their historical peak of €6,329/m² in September, a 10% increase compared to last year.

Within the Golden Mile, one of the most in-demand developments in 2024 has been Puente Romano, particularly the areas of Puente Romano Phase 2, Marina de Puente Romano, and UNO, where sales increased by 20% between January and June.

With an average price exceeding €30,000/m², Puente Romano has become the most expensive luxury residential area in Spain and one of the most sought-after in the Costa del Sol.

According to Javier Nieto, this significant increase can be attributed mainly to the relatively slow sales in Puente Romano in 2023, as prices were very high, and owners were reluctant to negotiate. This year, they are more open to negotiation, and as a result, sales have picked up.

Villa Magna

Another standout property in Puente Romano, exclusively listed by Pure Living Properties, is Villa Magna. This exceptional villa features four bedrooms, four bathrooms, a pool, a gym, a cinema room, a bar, and a garage with a turntable, priced at €10.5 million.

La Zagaleta

Considered by many to be the best residential area in Europe, La Zagaleta covers 900 hectares, with around 400 plots and approximately 260 villas. It is one of the most exclusive and sought-after locations not only in the Costa del Sol but in the entire country.

Demand has increased by more than 19% in the first months of 2024, with price growth being more modest, up just 0.5% compared to 2023.

The average price of a new property in La Zagaleta is currently between €15,000 and €16,000/m², with some premium plots featuring panoramic sea views reaching over €10,000/m². There have even been land transactions exceeding €10 million.

La Zagaleta is also undergoing an expansion project that will include a 60-room hotel and 66 branded residences, with a total investment of over €170 million. This development is expected to further solidify its position as one of the most prestigious residential areas in Europe.

Sierra Blanca

In 2024, property sales in Sierra Blanca have increased by 18% compared to the previous year, further establishing it as one of the most sought-after areas in Marbella. This growth is driven by continued international demand and the limited availability of plots, which keeps driving up prices.

The average price for properties in Sierra Blanca has reached €6.5 million, with some exceptional mansions exceeding €14 million. The demand continues to exceed supply, especially for new builds, making resale properties an increasingly popular option. The limited availability of land for new developments is further driving this trend.

Emerging Areas

As sales continue to grow in established areas and developments, the luxury real estate market is expanding notably westward along the Costa del Sol, approaching the boundaries with Sotogrande, another renowned luxury destination.

This expansion is generating significant economic dynamism in the affected municipalities, driven by three key factors: the availability of buildable land in areas of interest, efficient bureaucracy, and low urban density.

Estepona

Estepona has become a major player in this expansion of the luxury real estate market. The town has recently positioned itself as one of the top destinations for international investors.

Estepona is home to premium areas such as El Paraíso and the new Golden Mile, a coastal strip extending from the Marbella boundary to Costalita. In recent years, it has benefited from the opening of new five-star hotels like Ikos Andalusia and METT Hotel & Beach Resort Marbella-Estepona. Prices in the area have risen by more than 9% during 2024.

A landmark development in 2024 has been the arrival of luxury residential projects to Estepona’s urban centre, such as Ikkil Bay, a villa complex on the front line of the iconic Playa del Cristo, with prices ranging from €2.3 million to €5 million. In 2024, this development sold the two most expensive apartments in the city.

Finca Cortesín

One of the most promising emerging areas on the Costa del Sol is Finca Cortesín, located in Casares. A quiet luxury retreat between Marbella and Sotogrande, it has become a prime destination for international investors seeking discretion, harmony with nature, and world-class golf.

Recognised as Europe’s top golf resort, Finca Cortesín has quickly evolved into a luxury residential destination, offering magnificent villas, low urban density, and a sophisticated, relaxed lifestyle.

How Much Does a Luxury Villa in Finca Cortesín Cost?

Casares, home to Finca Cortesín, is one of the Costa del Sol’s municipalities where property prices have risen the most in recent years, particularly along the coast. As of August 2024, the average price per square metre in Casares reached €2,715, a 21.3% increase compared to the same period last year and 85% higher than in 2010, when it was €1,464/m². In the luxury market, particularly in Finca Cortesín, prices per square metre are nearly four times higher than the municipal average, currently exceeding €9,300/m².

Properties with sea and golf course views are in the highest demand and fetch the highest prices. For example, a two-bedroom apartment with sea views in the Marea development, featuring interiors designed by Missoni, is listed at €1.59 million. At the top end, a contemporary-style villa with seven bedrooms, eight bathrooms, gardens, a pool, and panoramic views is on the market for €7.7 million.

Notable Developments and Projects

In 2024, investments in luxury real estate on the Costa del Sol exceeded €3.2 billion, with several major projects taking shape in the Golden Triangle and other emerging areas. Sustainability and technology are playing a pivotal role in these new developments.

Marbella

One of the most notable projects is Marbella Design Hills, a branded residence by Dolce & Gabbana, which was launched in September 2023. The project, which already has a waiting list for properties, began construction in 2024. The first pilot homes are expected to be ready by the end of 2025.

UNO Beach Residences: This beachfront complex in the Golden Mile has already sold the majority of its 50 apartments, with prices ranging from €5 million to €19 million. It remains one of the most coveted developments at present.

Estepona

Tyrian: Located in the heart of Estepona, Tyrian is a new luxury project that is attracting international investors with its contemporary design and prime location by the sea. With prices reaching up to €3.5 million, these properties are designed with sustainability and energy efficiency in mind.

Ikkil Bay: Situated on one of Estepona’s best beaches, Ikkil Bay is an exclusive luxury complex offering sea-view apartments. Prices in Ikkil Bay range from €2 million to €5 million, and each unit is equipped with cutting-edge technology, integrating sustainable design and high-end comfort.

Benahavís

Lamborghini Villas: In Benahavís, the DarGlobal project with Lamborghini is one of the most innovative developments at present. This collaboration includes 53 luxury villas designed with the aesthetics and spirit of the renowned Italian automotive brand. Prices for these properties range from €3.6 million to €9.5 million, with each villa offering a unique design inspired by the world of cars, featuring high-tech finishes and sustainable features.

Finca Cortesín

Finca Cortesín in Casares continues to grow with a total estimated investment of €600 million. Notable current developments include Golfside Villas and Green 10, with prices ranging from €4.5 million to €7.7 million. Additionally, the St. Regis Residences development, the brand’s first residential complex in Europe, is set to be completed by 2026. The residences will be luxury homes priced between €2.4 million and €6.5 million.

Luxury Market Segmentation

Trends and Most Demanded Properties

In 2024, the luxury market has seen a notable rise in demand for personalised properties, particularly those that prioritise sustainability and cutting-edge technology. Smart homes equipped with advanced home automation systems—controlling everything from lighting to climate and security—are among the most sought-after properties. These homes enable buyers to manage all aspects of their home remotely and efficiently, a feature especially valued in the luxury segment.

In addition, sustainable homes meeting high energy efficiency standards and using renewable energy sources have experienced consistent demand growth. International buyers are looking for properties that not only offer exclusivity and luxury but also contribute to reducing their ecological footprint. Sustainability is becoming a key differentiator in the luxury sector.

• Custom luxury villas, especially in areas like La Zagaleta and Sierra Blanca in Marbella, where privacy and bespoke design are key factors.
• Residences with advanced technology and home automation, highly popular among young tech investors and digital nomads.

Increased Value in the Market

The luxury segment in Spain has experienced a 37% increase in the average value of properties over €3 million since 2019. In 2024, the average value of these properties has reached €5.4 million, with some exclusive homes in Marbella and the Balearic Islands exceeding €10 million.

Marbella and Benahavís are leading the market, with developments like the Lamborghini Villas and Fendi Casa reaching prices ranging from €4 million to €10 million. Additionally, Finca Cortesín in Casares is establishing itself as a high-value enclave, with properties exceeding €7 million, attracting high-profile investors seeking an ultra-exclusive and sustainable lifestyle.

In conclusion, the most in-demand properties in 2024 are those offering customisation, advanced technology, and sustainability. The highest prices are found in premium developments in Marbella, Benahavís, and Finca Cortesín, where the luxury market is breaking investment and value records.

Impact of Policies and Legislation on the Luxury Real Estate Market

Tax Changes Affecting the Luxury Real Estate Market

In 2024, the Spanish Government introduced several tax changes that are impacting the luxury real estate market. One of the most significant changes is the elimination of the Golden Visa, announced by Prime Minister Pedro Sánchez in April this year. Although this program allowed non-EU nationals to obtain residency by investing at least €500,000 in real estate, the legislative process to eliminate it is still ongoing, facing some obstacles.

Since its creation in 2012, the Golden Visa has been a key attraction for the luxury market, with over 14,500 visas granted, mostly linked to real estate purchases in cities like Marbella, Madrid, and Barcelona.

With the abolition of this program, the impact on the luxury real estate market is expected to be limited in absolute terms, as it only represented a small percentage of total transactions in the luxury sector (around 7.1% in Marbella). However, the effects will likely be felt in the most in-demand areas, where foreign investment has been crucial in driving up prices.

Digital Nomad Visa

Another factor influencing the luxury market is the Digital Nomad Visa, introduced under the Startup Law, which came into effect at the end of 2022. This visa offers remote workers from outside the European Union the possibility of residing in Spain while continuing to work for foreign companies. To qualify, applicants must demonstrate a minimum income of €28,000 and benefit from favourable tax advantages, such as a fixed 24% tax rate on income earned in Spain, rather than the normal progressive tax system, which can reach up to 50%.

This visa has begun to attract young investors and professionals from the tech sector, who are seeking properties in luxury areas such as Marbella and Estepona. These individuals tend to look for properties with advanced technology and sustainability features, which has boosted demand for high-end residences with innovative characteristics.

The Decisive Role of Technology and Innovation in the Luxury Real Estate Market

Technological Influence on the Real Estate Market

In 2024, technology has revolutionised the luxury real estate market, enhancing both the customer experience and asset management. The main innovations include the use of virtual reality (VR), artificial intelligence (AI), and big data, which have transformed how luxury properties are marketed, purchased, and managed.

Virtual and Augmented Reality

These tools allow potential buyers to explore properties without needing to visit them physically. Virtual reality has made immersive virtual tours a standard in high-value property transactions, enabling clients to tour homes from anywhere in the world, which is especially useful for international investors. Augmented reality also facilitates real-time visualisation of potential renovations or custom designs.

Artificial Intelligence

AI is being used to analyse large amounts of data to predict market trends and improve asset management. In the luxury sector, AI systems help customise the property offerings to match buyers’ needs and preferences, optimising the buying and selling processes. AI is also improving operational efficiency in managing luxury properties, enabling investors to make more informed decisions.

Home Automation and Smart Buildings

Luxury properties are increasingly equipped with advanced automation systems, which control security, climate, lighting, and other services via mobile apps. These technologies allow owners to manage their homes remotely, increasing the demand for “smart homes” in the luxury sector. These buildings also often feature energy-efficient systems that optimise consumption and contribute to sustainability, a growing priority for luxury buyers.

Sustainability and User Experience

Technology not only improves the functionality of luxury homes but also drives sustainability. Advances in ClimateTech enable real estate developers to implement renewable energy systems and reduce carbon emissions. Luxury properties must now meet energy efficiency standards to appeal to buyers concerned about their environmental impact. This aligns with the growing demand for sustainable homes that offer comfort, exclusivity, and reduced environmental footprints.

Projections for the 2025 Market

Price and Demand Expectations

For 2025, the luxury real estate market on the Costa del Sol, particularly in Marbella, Estepona, and Benahavís, is expected to experience steady growth both in prices and demand. In the most established areas, such as Marbella’s Golden Mile and Benahavís’s La Zagaleta, price increases of 5% to 8% per year are projected, driven by international buyers seeking exclusive, high-value properties.

In terms of demand, properties with advanced technology, home automation systems, and sustainability features will continue to be the most sought-after. The presence of digital nomads and younger buyers from the tech sector, along with traditional high-net-worth investors, will continue to drive the purchase of homes that meet modern and efficient standards.

The expansion westward along the Costa del Sol is expected to continue as luxury properties move toward quieter, lower-density locations closer to Sotogrande, with developments like Finca Cortesín continuing to grow. This expansion reflects the increasing demand for exclusive properties in environments offering privacy and a connection to nature.

Key Drivers of the Market in 2025

• Expansion westward along the Costa del Sol: Luxury development is expanding towards Sotogrande, where Finca Cortesín is leading the charge as a destination for quiet luxury. This residential area, set in nature, is projected to grow further in 2025 with significant projects like the Lanserhot Group’s longevity clinic.
• Diversification of international demand: The demand for properties on the Costa del Sol will continue to be driven by international buyers, with an increasing number from the US, the Middle East, and Asia, attracted by Málaga’s direct flight connections and the luxurious Mediterranean lifestyle.
• Innovation and sustainability: Buyers will continue to prioritise homes with high environmental standards, such as energy-efficient systems, solar panels, water recycling, and advanced home automation, reflecting global sustainability trends.
• International brand projects: The rise of branded residences will further elevate the Costa del Sol as a luxury destination. Developments like the Lamborghini Villas in Benahavís and Fendi Casa in Marbella will set a new standard, offering luxurious lifestyles associated with prestigious global brands.
• Quality of life and tax advantages: The Costa del Sol’s excellent quality of life, combined with tax advantages for digital nomads and favourable policies for foreign investors, will continue to make it a preferred destination for permanent residence. This will benefit the luxury property market in Marbella, Estepona, Benahavís, and emerging areas like Casares.

Conclusions

The luxury real estate market on the Costa del Sol, particularly in areas like Marbella, Estepona, Benahavís, and emerging locations like Finca Cortesín, continues to solidify its position as one of Europe’s and the world’s most sought-after investment destinations. In 2024, the region experienced significant growth in demand for high-end properties, driven by factors such as economic stability, modern infrastructure, and an unparalleled quality of life that attracts a diverse base of international buyers.

A key trend has been the increasing preference for sustainable and technologically advanced properties that integrate energy efficiency, home automation, and eco-friendly materials. This focus has set new standards in the luxury market, where sustainability is now a determining factor. Additionally, the rise of branded residences has elevated the region’s appeal, introducing a level of exclusivity linked to prestigious brands. Notable examples include the Lamborghini Villas in Benahavís, the Fendi Casa residences in Marbella, and more recently, the Design Hills Dolce & Gabbana Marbella project.

Looking ahead to 2025, projections remain positive, with further price increases and rising demand expected. The market is likely to expand westward, incorporating quieter and less densely populated areas near Sotogrande, where developments like Finca Cortesín are leading the way. This expansion reflects a natural growth in supply to meet the increasing demand for exclusive properties in settings offering privacy and natural surroundings.

In short, the Costa del Sol continues to position itself as a robust and expanding luxury real estate market, offering a unique combination of Mediterranean lifestyle, innovation, culture, and high-value investment opportunities. Marbella remains a key destination for high-net-worth international investors, providing an unparalleled living experience and attractive investment prospects.

Javier Nieto CEO / General Manager

Meet Javier

Javier is the founder and CEO of Pure Living Properties. Born and raised in Marbella in an entrepreneurial family who settled on the Costa del Sol in the 1960s, when Marbella’s real estate and tourism industry was just a fledgling market, Javier is an expert connoisseur of Puente Romano, which he calls home, and the Golden Mile, but also of the best areas, projects and companies, as their owners and developers have been among his inner circle since childhood.