International Buyers: Who is Investing in Property on the Costa del Sol?

Ever since Marbella became a holiday hotspot amongst the rich and famous in the 1950s, and package holidays arrived in the 1970s, the Costa del Sol has been a favourite amongst all types of international visitors and buyers. Over the years, as new builds on the Costa del Sol have appeared, towns have developed and infrastructure put in place, the number of foreign buyers has grown. Today, in 2025, the coast is seeing more international buyers than ever before, from the UK, Scandinavian, Middle East, Morocco and more recently from the USA. Whether their dream homes are traditional villas in Marbella or new apartments in Estepona, the market continues to be red hot.  

12% of foreign sale in Málaga

The phenomenon isn’t unique to the Costa del Sol, quarterly figures provided by the Colegio de Registradores show that over 93,000 property transactions throughout Spain, were made by foreign buyers, a 6.4% increase on the previous year (2023).  International buyers account for 32.4% of property sales on the Costa del Sol and 12% of all property purchases in Spain.  

Which nationalities are investing in real estate on the Costa del Sol?

Statistics for Q4 2024 from the same source, shows that UK buyers represent the largest percentage of purchases (8.5%), Germans (6.67%), Dutch (5.91%), followed by Moroccans, French, Romanians and Italian. Even though the British are still the predominant market, there has been a substantial drop from 24% since Brexit in 2016. On the other hand, there has been an uptick in the number of US buyers (1,550 sales) who for one reason or another have decided to look for property for sale on the Costa del Sol, with a view to relocating from the USA. Middle Eastern investors’ interest in the premium end of the property market continues to be strong, particularly in areas such as La  Zagaleta, Benahavís and the Golden Triangle, that offer the requisite features: the right location, level of luxury, privacy and security.  Conversely, on the flipside, the number of French buyers has dropped off slightly (These figures are based on the data in the Land Registrars quarterly reports, as reported by Idealista.com).  

Non-resident foreign buyers

As compared to both foreign and Spanish resident buyers, non-resident international buyers are more interested in high-value properties. British, German, French, Belgian and Dutch account for 48% of the purchases of premium property on the Costa del Sol and throughout the rest of Spain. Property Portal Idealista.com confirms that the appetite for luxury property is robust, with 77% of demand focused on luxury detached homes priced at €1.5 million and above, with premium apartments and penthouses accounting for the remaining 23%.

Why such interest in real estate on the Costa del Sol?

 

• Climate: The Costa del Sol is considered one of Europe’s safest property investment markets, primarily due to the perennial Mediterranean climate, luxury lifestyle and quality of life, that benefits both residents and investments.

 

• Culture: The sunshine lifestyle goes hand in hand with the rich Andalusian culture, which draws heavily on tradition and religion, whilst being vibrant, loud and full of life. This is especially appealing for buyers investing in a second home, who want to experience the lifestyle and culture.

 

• Economy: Spain currently has one of the most stable economies in Europe and as a member of the EU, it represents a safe environment for foreign investors. Lower interest rates and higher employment together are driving the domestic market, albeit somewhat limited by affordability.

 

• Rental potential: There is a national housing shortage, which is constantly driving up the purchase and rental prices. There is considerable potential for high returns on investment.

 

• International expat community: The Costa del Sol is a melting pot of different nationalities and cultures, with many different communities along the coast. This means that buyers who wish to relocate have a ready-made network and access to familiar voices, attitudes and products from home.

 

• Infrastructure: The Costa del Sol has benefitted considerably from enormous investment, resulting in Malaga international airport which is connected to the majority of major travel hubs., high speed rail links, toll road and transport links, a hugely successful technology park and much more.

 

• Greater demand than supply: There is a consistently higher demand than the market can supply for premium properties, especially in the Golden Triangle of Estepona, Marbella and Benahavís. This means that prices are continuously rising, as demand grows and the housing stock dwindles, resulting in potentially high returns.

Málaga is considered to be one of the most expensive provinces in Spain, due to a 13% increase as compared to 2023 (Tinsa by Accumin 2024).  Another estimate from Gesvalt, suggests that the increase in Málaga’s property prices between 2023 and 2024 is even higher, at 15.3%. This is compared to the Spanish average of 4.4%.   According to Eric Muller, Founding partner of award-winning Andara Villas, the Costa del Sol housing market will continue its upward trajectory. It is to a certain degree influenced by a shrinking supply of prime plots, labour shortages and the constantly increasing building costs, thereby ensuring consistent demand.  As a result, he estimates prices to continue to rise by at least 10% throughout 2025.  He explained that the premium market is driven by HNWI cash buyers who don’t need finance and are therefore unaffected by interest rates and other market conditions – thereby pushing up the prices. If you would like further information about villas for sale in Marbella Spain, you are looking for 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.