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Costa del Sol Property Market Update 2025
Terrasur Homes | Sep 25
The Costa del Sol continues to be one of Europe’s most attractive destinations for both lifestyle and investment. Sunshine, international culture, and a strong property market keep drawing buyers from all over the world.
At TerraSur Homes, we live this market daily — guiding international buyers, advising sellers, and helping investors make informed decisions. Here’s our mid-2025 update on where the Costa del Sol property market stands, how it compares with last year, and what it means if you’re thinking of buying or selling.
📈 Property Prices in 2025
Property prices remain on an upward path, though growth has started to stabilise compared to the sharp rises of recent years.
Marbella: Average prices reached a record €5,162 per m² in May 2025 — a 9.8% increase compared to 2024 (Idealista).
Estepona: Prices now average €3,854 per m², up 1.7% year-on-year (Estepona Info).
Andalucía region: Overall, prices rose by around 12–13% in 2024, growth that has carried into 2025 (Cadena SER).
👉 For sellers: Your property remains in a strong position if priced realistically.
👉 For buyers: Competition is still high — preparation and quick decision-making are essential.
🏗️ New Developments vs Resales
🏗️ New Developments vs Resales
The strongest demand continues to be for new developments. International buyers want energy-efficient homes, modern design, and legal guarantees — particularly important when purchasing from abroad.
Resales, however, still play a vital role. The difference lies in presentation:
Homes that look dated or cluttered risk sitting on the market longer.
Renovated and staged properties attract serious interest.
📊 Rentals & Investment
Rental demand remains strong across the coast:
Yields average around 7%, with higher returns in tourist zones (Spotblue).
With restrictions on new tourist rental licences in Málaga city, investors are increasingly focusing on Estepona, Marbella, and Benahavís.
Long-term rentals are in very high demand from families relocating, making them a reliable option for investors seeking stable income.
🌍 Advice for Buyers in 2025
- Prepare documents early (NIE, financing, lawyer) to avoid delays.
- Focus on quality, energy efficiency, and lifestyle-driven locations.
- Move quickly when the right property appears — especially under €300,000, which remain scarce.
🏡 Advice for Sellers in 2025
- Presentation sells: staged, decluttered, and professionally photographed homes stand out.
- Be realistic on pricing: buyers are informed and selective, especially this year.
- Highlight lifestyle as much as features: buyers want to picture their life, not just square metres.
✨ TerraSur Homes’ Perspective
Compared with 2024, the 2025 market feels more selective and more balanced. Buyers know what they want, and sellers who prepare carefully are seeing excellent results.
The Costa del Sol remains one of Europe’s most attractive property markets — for lifestyle and for investment. With the right preparation and guidance, buyers and sellers alike can make confident decisions.
📩 At TerraSur Homes, we’re here to make sure you do just that. If you’re considering buying or selling this year, let’s talk.
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