The Costa del Sol continues to live up to its golden name, as 2025 draws to a close, the region’s property market is not just thriving, it’s breaking records. From glamorous Marbella to the more tranquil inland town of Ojén, demand for property on Spain’s Costa del Sol remains at an all-time high, attracting investors, holiday makers and expats round the world.
Marbella still shines brightest
If luxury were defined by location, Marbella would undoubtedly take the crown. The city remains the undisputable leader of the Costa del Sol market, with average prices reaching €5,258 per square metre (Idealista, October 2025). Upmarket neighbour Benahavís, follows closely at €5,205/m², offering a quieter, more exclusive setting surrounded by golf courses, mountains and the private estates of La Zagaleta.
Meanwhile, further down the coast in Fuengirola, the once modest holiday destination, has recently been elevated into the luxury price bracket, crossing the €4,300/m² mark, which equates to a remarkable 18.8% price increase over the past 12 months.
Equally impressive growth has been noted across the entire Costa del Sol. Málaga city, the Costa del Sol’s vibrant cultural and technology capital, continues its upward trajectory, reaching €3,549/m², a year-on-year increase of 15.6%.
Other hotspots registering impressive levels over the last year include:
- Algarrobo-Costa (La Axarquía): €3,614/m² = 27.6% increase
- Ojén: €3,863/m² = 25.6% increase
- Benalmádena: €3,903/m² = 18.6% increase
- Torremolinos: €3,740/m² = 17.3% increase
- Nerja: €3,734/m² = 8.7% increase
(Idealista.com)
Hidden gems on the rise
While luxury enclaves continue to dominate, there’s growing excitement around the strong performance of smaller towns and emerging inland areas. These destinations are attracting increasing interest from buyers seeking authentic Andalusian character, natural beauty, a laid-back coastal lifestyle and more attainable property prices. Leading the charge are Almayate Bajo (+31.1%, €3,184/m²), Algarrobo-Costa (+27.6%, €3,614/m²), Ojén (+25.6%, €3,863/m²), Caleta de Vélez (+25.1%, €2,943/m²), and Frigiliana (+20.1%, €3,253/m²).
These increases reflect the desire to find the perfect property to buy on the Costa del Sol is expanding eastward and inland, turning these once-quiet fishing villages and mountain communities into some of the coast’s most promising property investment zones. Whether it’s a contemporary apartment for sale in Málaga city, a luxury villa in Marbella, or a rustic retreat in Frigiliana, buyers view owning real estate on the Costa del Sol as both a lifestyle and financial investment.
Steady, sustainable growth
And the forecast for 2026? According to Eric Muller, Director and co-founder of Andara Villas, the Costa del Sol is expected to see steady growth. The market remains strong, driven by quality design, infrastructure investment and sustainable development, with prime areas like Marbella, Estepona, and Sotogrande will retain their luxury appeal, while La Línea, Casares and Manilva continue to attract buyers seeking both value and lifestyle. The buyer profile is more diverse than ever, comprising digital nomads, retirees, investors and new entrants from North America and the Middle East.
These increases reflect the desire to find the perfect property to buy on the Costa del Sol is expanding eastward and inland, turning these once-quiet fishing villages and mountain communities into some of the coast’s most promising property investment zones. Whether it’s a contemporary apartment for sale in Málaga city, a luxury villa in Marbella, or a rustic retreat in Frigiliana, buyers view owning real estate on the Costa del Sol as both a lifestyle and financial investment.
In conclusion, investment hotspots include Estepona’s New Golden Mile, La Alcaidesa, San Roque, and La Línea, alongside off-plan projects offering strong ROI potential. While interest rate changes or global trends could pose challenges, confidence remains high, and the Costa del Sol continues to stand out as one of Europe’s most resilient and attractive real estate markets.
It looks like 2026 is shaping up to be a year of solid opportunities for those looking to invest in or relocate to Costa del Sol. With growing demand, continued infrastructure improvements and ever- evolving buyer profiles, it remains one of Europe’s most dynamic real estate destinations. Now is definitely a smart time to enter the market!
If you would like assistance finding the perfect property to buy in the Costa del Sol’s or you have a real estate development project that you would like to discuss, contact info@andaravillas.com, visit the website www.andaravillas.es or call or Whats App + 31 653126026.
In 2025, Marbella continues to lead with an average price of €5,258/m². Other notable areas with significant price increases include Fuengirola (+18.8%), Málaga city (+15.6%), and emerging towns like Almayate Bajo (+31.1%) and Ojén (+25.6%). Smaller towns like Frigiliana and Caleta de Vélez are also attracting increasing interest due to their authentic Andalusian charm and more affordable prices.
These inland towns are becoming more popular as buyers seek a blend of authentic Andalusian character, natural beauty, and a relaxed lifestyle. Additionally, these areas offer more affordable prices compared to the luxury hotspots along the coast, making them attractive to those looking for investment opportunities and a tranquil environment.
The Costa del Sol is expected to continue its steady growth in 2026, with strong demand for luxury properties in Marbella, Estepona, and Sotogrande, while areas like La Línea, Casares, and Manilva are attracting buyers looking for value and lifestyle. The buyer profile is becoming more diverse, with digital nomads, retirees, and investors from North America and the Middle East entering the market.
