Luxury Property Market on the Costa del Sol Rises to over 3 Billion euros
The Golden Triangle experiences a remarkable year setting new records.
The luxury real estate market in Costa del Sol has witnessed an unprecedented rise, with investments reaching €3.2 billion in 2024, reflecting an impressive 20% growth from the prior year. This remarkable expansion has been largely fueled by the area’s renowned “Golden Triangle,” comprising Marbella, Estepona, and Benahavís, which consistently reinforce their reputation as top-tier locations for high-end property investments.
Marbella, the front runner of the luxury Market on the Costa del Sol.
Marbella is recognized as the foremost destination in Spain’s luxury real estate sector, representing 50% of the region’s total luxury investments, with remarkable sales reaching €1.6 billion. This alluring municipality consistently draws discerning buyers in search of exclusivity and elegance in one of Europe’s most sought-after locales. Whether enticed by its premier golf courses, Michelin-starred restaurants, or immaculate beaches, investors acknowledge the significant worth of properties available in Marbella as prime assets within one of Europe’s most esteemed real estate markets.
Luxury Property Marbella´s Golden Mile
Estepona has firmly established itself as a leading real estate destination, closely trailing Marbella, with a remarkable contribution of €800 million to the luxury property market in the region. This dynamic coastal town consistently draws buyers who are in search of a harmonious blend of contemporary sophistication and traditional Andalusian allure, rendering the properties available in Estepona exceptionally sought after.
The charming town of Benahavís, meanwhile, rounds out the esteemed Golden Triangle with €500 million in luxury real estate transactions. Renowned for its breathtaking scenery, premier golf courses, and exclusive gated neighborhoods (La Zagaleta, El Madronal,..), the properties available in Benahavís present a remarkable opportunity for investors seeking to acquire a residence in one of Spain’s most distinguished areas.
Prices in Prime Locations fetching up to 35,000 euros per square metre
Furthermore, notable price records have been observed in the region’s desirable locations, with Marbella exhibiting an average house price of approximately 5,000 euros per square meter. LuxuryForSale.Properties has successfully sold properties in the most prestigious areas of the Costa del Sol, specifically Puente Romano and Sierra Blanca, at prices exceeding 35,000 euros per square meter.
Who’s buying in la Costa del Sol?
The allure of the Costa del Sol for international investors continues to be strong, as foreign purchasers represent 90% of all luxury real estate transactions in 2024. This diverse international interest highlights the region’s esteemed status as a leading luxury destination worldwide.
The buyer profile indicates noteworthy trends regarding the individuals who are investing in the luxury real estate market of Costa del Sol.
- Tech entrepreneurs lead the charge, representing 30% of luxury buyers
- Digital nomads seeking a Mediterranean lifestyle make up 25% of purchases
- Elite athletes account for 20% of high-end property acquisitions
There has been a remarkable increase in investments from buyers in both America and the Middle East.
Beyond residential market: the hotel investment boom
The surge in luxury extends beyond just residential real estate. In 2023, the hotel industry in Málaga province garnered an investment of €560 million, establishing the Costa del Sol as the third most sought-after location for hotel investments in mainland Spain, following Madrid and Barcelona.
Foreign investors demonstrated significant engagement in this sector, representing 60% of hotel transactions. Since 2018, the Costa del Sol has garnered around €1.88 billion in hotel investments, encompassing 82 transactions that involve approximately 12,000 rooms. This trend underscores the confidence investors have in the region’s potential for sustained growth in the long term.
What’s driving this property growth?
- Favourable tax policies, including a capped 24% income tax rate for non-EU residents with overseas businesses
- Lifestyle appeal combining Mediterranean climate, world-class amenities, and cultural richness
- Strategic location with excellent international connectivity
- Diverse property options from beachfront villas to mountain retreats
The Future is Bright on the Costa del Sol.
As we look forward to the remainder of 2025, Marbella is anticipated to uphold its status as a global benchmark of excellence in luxury real estate, as the market progresses blending innovation, sustainability and exclusivity to meet the demands of an increasingly discerning market.
For an overview of the finest properties available on the Costa del Sol, we at LuxuryForSale.properties invite you to explore our extensive catalog of most expensive homes for sale. Alternatively, you may wish to reach out to our sales team, who are eager to assist you in finding your ideal residence. We look forward to your inquiry.