The whole truth about real estate on the Costa del Sol.
The real estate market outlook for Costa del Sol in 2025 is nothing short of positive. This is driven by several key factors: stable property price growth of 6-8% in prime locations, increasing demand from international investors, the development of modern projects and infrastructure, as well as new urban planning initiatives aimed at expanding land availability for construction.
Price growth in the “Golden Triangle” region (Marbella, Estepona, Benahavís) is particularly pronounced in the luxury segment of villas and apartments, which continue to attract investors from Europe, North America, and the Middle East. It is no surprise that the Andalusian regional government allocated nearly €3.5 billion in 2024 for infrastructure development, including airports, highways, and railway connections.
All these factors make Costa del Sol one of the most attractive primary real estate markets in Spain, appealing to both those seeking vacation homes and investors looking for modern properties at competitive prices with high returns. Buying off-plan properties offers not only significant return on investment but also a range of benefits that many novice investors may not be aware of. Here are some of the key advantages:
- Lower Prices: Off-plan properties are often priced lower than completed ones, giving buyers a chance to secure a property at a discounted rate.
- Potential for Capital Growth: As property values can increase during the construction period, buyers might see an appreciation in value by the time the property is completed.
- Flexible Payment Plans: Many developers offer staggered payment plans, allowing buyers to spread the cost over the construction period.
- Personalization Opportunities: Buyers may have the option to choose finishes, layouts, or fixtures, tailoring the property to their tastes.
- New and Modern Designs: Off-plan developments often feature the latest trends in architecture, technology, and energy efficiency.
- Bank Guarantee: To secure the investment, developers must provide a bank guarantee to fully compensate the buyer in case they fail to fulfill contractual obligations, such as completing the property or refunding deposits. It provides financial security to buyers against potential risks like developer insolvency or project delays.
- Developer Guarantee: New builds typically come with guarantee, such as a 10-year structural guarantee, protecting against construction defects.
- Lower Maintenance Costs: Being brand new, off-plan properties are less likely to require immediate repairs or upgrades.
- Rental Demand: New builds are attractive to tenants due to modern amenities, potentially generating higher rental yields.
- High Resale Appeal: Newly built properties can be easier to sell due to their modern features and minimal wear and tear.
- Lower Running Costs: Energy-efficient designs and appliances can lead to savings on utility bills.
- Lifestyle Amenities: Many new developments include communal spaces, gyms, pools, or security features, adding value to the property.
- Securing a Property in a High-Demand Area: Off-plan allows you to lock in a property in locations where demand might rise in the future, ensuring availability and favorable pricing.