Have you ever dreamed of owning a property under the Mediterranean sun? As we step deeper into 2025, many investors are once again asking the golden question: Is now the right time to invest in Spanish real estate? Let’s take a look at the current market landscape and why Costa del Sol continues to be one of the most attractive investment destinations in Europe.
Spain has made a strong economic comeback over the past few years. With increased stability across the eurozone, a growing GDP, and continued investment in infrastructure and tourism, confidence in Spain’s property sector is higher than ever. Consumer confidence and foreign investment are rebounding steadily, especially in regions with international appeal like the Costa del Sol.
Since 2023, property prices in many parts of Spain have seen a healthy, controlled appreciation. Costa del Sol, in particular, has demonstrated strong demand driven by lifestyle buyers, retirees, digital nomads, and investors alike. With construction activity resuming and modern developments launching across key coastal areas, the market is dynamic yet stable—offering a unique window for buyers in 2025.
While prices have risen since the post-pandemic lows, Costa del Sol still offers competitive value compared to other Mediterranean destinations. Properties here continue to provide excellent capital appreciation and strong rental yields.
International interest in Spanish property—especially along the coast—remains high. With limited supply in high-demand locations, many investors are locking in deals now to avoid paying higher premiums later.
With Spain projected to hit record-breaking tourism figures again this year, short-term rental opportunities are flourishing. Investing in a Costa del Sol property offers potential for regular income from vacation lets—particularly during peak summer and holiday seasons.
In 2025, coastal towns with modern infrastructure, good transport links, and lifestyle amenities are commanding the most interest. Whether it’s the beachside glamour of Marbella or the laid-back charm of Mijas and Estepona, choosing the right location is key.
UK citizens continue to invest confidently in Spain, though they now fall under non-EU rules. This means longer stays may require residency permits, and taxes may differ. The good news? Spain’s “Golden Visa” scheme still welcomes UK buyers investing €500,000 or more.
Beyond the purchase price, buyers should factor in notary fees, transfer taxes, community fees, and annual property taxes (IBI). It’s also wise to budget for maintenance or management services, especially for rental properties.
Spanish banks continue to offer competitive mortgage rates to both residents and non-residents. While interest rates have risen slightly across Europe, they remain favorable compared to historic norms, and fixed-rate products are increasingly popular.
Thanks to digital systems and experienced legal advisors, the buying process is faster and smoother than ever. With the right guidance, you can secure your property in a matter of weeks.
From Malaga to Estepona, the Costa del Sol remains one of Spain’s top property hotspots. Here’s why:
Climate & Lifestyle: Over 300 days of sunshine per year and a Mediterranean lifestyle that attracts global attention.
Connectivity: Malaga Airport now has direct links to more than 120 destinations. High-speed trains also make day trips to Madrid and Seville possible.
Strong Rental Market: Whether you’re eyeing long-term tenants or short-term tourists, demand in this region is exceptionally high.
Marbella: Timeless appeal, luxurious properties, and elite amenities make it a top choice for high-net-worth buyers.
Mijas Costa: A growing favorite for international families and digital nomads thanks to modern developments and excellent value.
Estepona: The “garden of the Costa del Sol” is thriving with boutique developments, a revamped beachfront, and charming Andalusian character.
Despite occasional predictions of price adjustments, Costa del Sol has consistently maintained its value thanks to demand, limited supply in prime areas, and its status as a lifestyle destination. With Spain prioritising sustainable urban growth and tourism infrastructure, the future looks bright for property owners here.
As we move through 2025, the Spanish property market—especially in the Costa del Sol—continues to shine. Whether you’re buying a second home, looking for a solid investment, or planning a lifestyle change, now is a great time to act. But, as always, success in real estate comes from understanding the market, working with local experts, and moving forward with confidence.
At Sunny Coast Homes, we’re here to help you every step of the way—from property search and financing to after-sales care. Let’s make your dream of owning a Spanish home a reality in 2025.
What’s the average property price in Costa del Sol in 2025?
Prices vary by area, but coastal towns like Marbella, Mijas, and Estepona are seeing average property prices range from €2,500 to €6,000 per m², depending on location and condition.
Are there new residency options for non-EU buyers?
Yes. Spain’s Golden Visa and other digital nomad visa options remain available, offering residency for qualifying property investors or remote workers.
Is Spain still welcoming to foreign buyers?
Absolutely. Spain has no restrictions on property ownership for foreigners and offers a transparent legal process.
What are the ongoing costs after purchase?
Expect annual property tax (IBI), rubbish collection tax, community fees (for apartments), insurance, and utilities. If renting, factor in property management costs too.
Can I finance the purchase as a non-resident?
Yes. Most Spanish banks offer mortgages to foreign buyers—typically up to 70% of the property value for non-residents.
