Malaga and Costa del Sol Real Estate Trends

Malaga and the Costa del Sol have emerged in recent years as a top real estate hub in Spain. The region attracts global professionals who settle either permanently or for extended periods each year, thanks to a blend of traditional tourism and a growing slate of cultural and technology projects. Market data from Engel & Völkers shows that foreigners now account for a sizable portion of property purchases, with a substantial share of transactions split evenly between primary homes and second residences while a notable portion is driven by investment intent.

According to Engel & Völkers, the Costa del Sol has recovered strongly from recent health crises in the real estate sector. Demand for homes with open spaces and new construction has helped reinvigorate the market, signaling renewed confidence after the pandemic shutdowns.

The firm notes that international buyers returned in force last year, and their share of Malaga sales has consistently surpassed earlier levels. In some periods, foreign buyers represented a significant majority of transactions, underscoring the continued appeal of Malaga and its surrounding areas to non-residents and investors alike.

As the study highlights, large villas with gardens and pools, along with terraces-equipped apartments, are among the most requested features in Malaga and Marbella. The demand favors homes that offer generous outdoor spaces, abundant natural light, and modern amenities that suit a cosmopolitan lifestyle.

Three to four bedroom houses ranging from 120 to 250 square meters are the most sought-after configurations in Malaga. In popular districts such as Cerrado de Calderón, Pedregalejo, and San Antón, two to four bedroom apartments between 100 and 170 square meters dominate the market, while the Malagueta area shows strong interest in loft-style properties with substantial interior size and a large terrace.

Property prices vary across neighborhoods. The average price runs from around 2,700 euros per square meter in Cerrado de Calderón to roughly 4,000 euros per square meter in the Malagueta. The neighborhood’s views and location are major price drivers, contributing to a steady year-on-year price gain in 2021.

Although Malagueta typically carries the highest average price, the West region saw the steepest price rises, with average values jumping to around 3,000 euros per meter and notable increases in overall values. The development of large projects on the Poniente promenade has supported this upward movement.

In areas such as Pinares de San Antón, Cerrado de Calderón, and El Palo, homes around 250 meters in size remain highly sought after, with average costs climbing in line with market demand. The Centro/Soho district, although expensive, experienced a slight price correction, while buyers still favored smaller, well-appointed city apartments with terraces and views.

In Limonar and Parque Clavero, four-bedroom apartments with long terraces and pools boosted prices by a notable margin, and in Pedregalejo, real estate costs rose as buyers pursued spacious homes with ample outdoor space. Substantial properties in these areas illustrate the preference for generous layouts and outdoor access in coastal living.

Marbella and the Gold Mile

The Golden Mile remains the benchmark for price in Marbella, a five-kilometer stretch along the coast that concentrates one of Europe’s most exclusive property markets. Prices peak at levels that reflect luxury and prestige, with some properties reaching very high per-meter costs. The presence of coveted urbanizations and gated communities continues to draw international investors seeking a blend of privacy, luxury, and sea views.

International buyers purchase both first and second homes in Marbella for seasonal stays or permanent residence. For 2021, the average price of properties marketed through Engel & Völkers in Marbella stood around €1.8 million, covering villas, apartments, and semi-detached homes. The buyer profile includes a broad mix, from jet-set retailers and tech professionals to international athletes who value Marbella’s climate and lifestyle.

Market observations indicate a growing segment of younger clients, particularly those aged 35 to 55, drawn from the information technology sector and other digital industries. This group often seeks dynamic, high-end neighborhoods where work and leisure blend seamlessly, attracting digital nomads who want a base that supports both careers and a vibrant social scene.

Following the Golden Mile, Puerto Banús and La Zagaleta emerge as notable hubs. The typical buyer in Marbella mirrors a European family seeking a second home or a long-term residence with large villas or spacious apartments near the beach. The region’s draw rests on a powerful combination of climate, infrastructure, and an elite lifestyle that appeals to discerning buyers from around the world.

Germans, British and Belgians

In Mijas, a strong presence of German buyers (about one-third) and notable shares of Belgians and French stand out. The majority of purchases in this area are for second residences, with a smaller portion allocated to investments or permanent relocation. Homes with two to four bedrooms and gardens, often featuring pools, remain the most popular choices, spanning roughly 138 to 286 square meters and across communities like Calahonda, El Chaparral, Campo de Mijas, Mijas Pueblo, and Mijas Golf. In Rivera del Sol and La Cala, demand centers on two- and three-bedroom apartments with terraces, typically around 96 to 120 square meters.

Estepona remains a hotspot for German and British buyers who continue to lead purchasing activity, while interest from Belgian, Dutch, and Swedish buyers has grown. Price levels across Estepona and its surroundings have seen meaningful increases since 2019, with price pressure broadening across multiple districts. Engel & Völkers notes that beach proximity, modern design, large terraces, sea views, and on-site amenities are key criteria for international buyers. Neighborhoods such as Costalita, Cancelada, Benamara, Selwo, and Estepona Bay feature two- to three-bedroom apartments or townhouses with terraces, typically totaling 90 to 200 square meters.

In Benalmádena, foreign buyers account for a substantial share of activity, with British, French, Danish, and Norwegian buyers leading the way. Fuengirola and Torremolinos show similarly strong foreign involvement, with British and Nordic buyers prominently represented in Fuengirola and Swedes, Germans, Danes, and Norwegians in Torremolinos. Benalmádena’s Higuerón area records some of the highest per-meter prices. In Fuengirola Center and nearby districts, price levels average around 2,200 and 2,000 euros per meter respectively, reflecting a shift in location preferences among buyers. Torremolinos centers remain in demand, with La Carihuela showcasing strong price points. The market continues to favor properties with space, light, and access to the coast, while urban and coastal neighborhoods compete for buyers seeking prime beachfront living.