Marbella & San Pedro Alcántara Property Market Report 2025

  The property market across Marbella and the surrounding areas — including San Pedro Alcántara and Estepona — has entered a new chapter defined by stability, maturity, and elevated quality. What began as a post-pandemic surge has evolved into a sophisticated, highly resilient market where design, lifestyle, and long-term value take centre stage.

The standard of architecture, construction, and community development continues to rise, positioning the region as one of Europe’s most desirable residential destinations. The market now reflects not just holiday-home demand but a shift toward permanent, high-quality living — supported by first-class amenities, international schools, and year-round vibrancy.

• Marbella and its neighbouring areas have cemented their reputation among Europe’s top luxury resort-residential markets.
   
• A significant proportion of residents are international, creating a cosmopolitan atmosphere with over 150 nationalities represented.
   
• Tourism and inward migration remain key drivers of the market, with record visitor numbers and an expanding base of year-round residents.
   
• The luxury segment continues to grow, driven by buyers from the UK, Northern Europe, North America, and the Middle East, with strong demand for properties over €2 million.
   

• Average property prices in Marbella rose by approximately 13–14% between mid-2023 and mid-2024, reaching around €4,800 per m².
   
• Property supply remains tight, with available listings declining by around 9% year-on-year, and by up to 18% in prime coastal zones.
   
• Luxury villas typically start at around €8,000 per m², with apartments averaging €6,000 per m² — reaching €30,000 per m² or higher in elite beachfront developments.
   
• Demand for ultra-luxury properties (€2 million and above) remains robust, with the majority of transactions conducted without financing.
   

• The market remains predominantly international: strong activity from British, Scandinavian, Dutch, and American buyers continues to shape local demand.
   
• The long-term rental market remains undersupplied, pushing monthly rents for quality homes to record levels — from €1,400 to €3,000 for well-presented two-bedroom apartments in good locations.
   
• The holiday rental sector is adapting to updated Andalusian regulations, encouraging professional management and higher-quality standards.
   

• Local authorities continue to invest in modern infrastructure and urban development, with planning approvals and building licences on the rise.
   
• The ongoing urban plan for Marbella aims to expand available land for residential use while prioritising sustainability and balanced growth.
   
• Regional challenges, such as traffic congestion and water resource management, are being addressed through long-term municipal strategies.
   

For San Pedro Alcántara, Estepona, and nearby coastal zones, these trends reinforce a strong, sustainable outlook. The market is driven by real demand — not speculation — and continues to attract high-quality investment. With limited new supply and an emphasis on lifestyle and community, property values are expected to hold and gradually strengthen over the coming years.

• The local market is strong, stable, and well-positioned for continued growth.
   
• Both buyers and sellers benefit from sustained demand and limited supply.
   
• Prices remain competitive compared with other global luxury destinations.
   
• Expert local guidance is essential to navigate evolving regulations and opportunities.
   

As a Century 21 Blue real estate professional based in San Pedro Alcántara, I provide clients with the insight and expertise needed to make confident, informed decisions in this exceptional market. Whether you’re exploring your next investment, selling your home, or relocating to the coast, my approach is defined by integrity, precision, and personalised service.

Let’s talk today about how to make your next move in one of Southern Spain’s most dynamic and desirable property markets.