Real estate investment is one of the most attractive options for foreign investors in Spainin Spain. Real estate investment combines two main factors, namely Stability and rewarding returns. In this context, Marbella is one of the main destinations in Spain thanks to its unique and distinctive location and the high demand for luxury homes. In this article, we will show you the latest information and statistics about the real estate market in Spain in general and Marbella in particularwith a focus on the trends and expected benefits of real estate investment in these areas.

 

• The size of the Spanish residential real estate market and the increase in real estate prices:

The size of the residential real estate market in Spain was around 166.01 billion dollars in 2024and is expected to reach 231.75 billion dollars by 2029with a compound annual growth rate of 6.9%This continued growth reflects the great interest in the Spanish real estate market and its relative stability.

 

 

Real estate prices in Spain also saw increased by 5.33% since the beginning of 2023, and this increase is expected to continue at a rate between 2% to 6% at the end of 2024-2025 Especially in coastal areas such as the Costa del Sol and Costa Blanca, these increases are attributed to high demand and low supply in areas favored for housing and investment.

 

• Continued growth and increased demand in the Spanish real estate market:

According to data from the National Institute of Statistics (INE)a total of 52,796 real estate transactions in February 2024a total of 52,796 real estate transactions were registered in February 2024, an increase of 5.8% from the same month in 2023, and during the period between January and February 2024, transactions increased by 1.6%and these figures reflect the continued demand for real estate in Spain.

As for the forecast Caixabankforecasts, the the real estate sector will only get stronger in the coming yearswith an expected 550,000 purchases by the end of this year. They also expect an average price recovery of 2.7% year-on-year Demand for real estate remains significantly higher than the figures recorded in 2018 and 2019, indicating that interest in buying real estate remains strong for a demand that enhances the stability of the real estate market and its attractiveness to investors.

 

• Positive ratios bode well for the recovery of the real estate market and an increase in investment returns in Spain in 2025:

The real estate sector is expected to continue to grow by 2025 with an increase in sales of between 2% to 3% A continued lack of supply will lead to new increases in house and apartment prices at a moderate pace. The forecast also indicates an increase in real estate investment returns as a result of high demand and low supply in the market, which is one of the most important factors that make real estate investment an attractive option for investors looking for stability and good financial returns.

 

• Significant changes in luxury real estate price appreciation in Marbella between 2022 and 2024, with percentages and comparisons with neighboring cities: 

The Marbella real estate market has undergone significant changes from 2022 to 2024 This is due to several key factors that directly affect price dynamics and market activity.

For example In 2022 Marbella experienced significant growth in real estate prices and salesas demand for luxury properties, especially those worth more than 4 million eurosDriven by local and international buyers, this trend is partly due to the high confidence that real estate developers have in creating world-class homes.

The average asking price in Marbella increased by 15.8% from May 2021 to May 2022, reaching €3,658 per square metersquare meter. This increase was significantly higher compared to the average for the entire province of Málagawhich amounted to 2,604 euros per square meter.

And in 2023, the market continued to thrive despite rising interest rates Marbella's real estate market has remained strong and steady, as less than 10% of these purchases were related to mortgagesThe first quarter of 2023 also saw sales volumes exceeded pre-pandemic levels by 18% where it was reported up to 20% increase in high-end real estate sales compared to 2022.

And in 2024-2025. The shortage of fully allocated construction land in Marbella continues to hinder new real estate development projects, and of course This shortage points to the continuous and intense demand for buying luxury real estate in Marbella that Prices are likely to continue to rise in the coming period.

Compared to other cities on the Costa del Sol such as Estepona, Mijas and Benahavis, Marbella Marbella continues to retain its position as a major luxury market. While these neighboring areas are also experiencing increased growth and development, real estate prices and luxury market activities in Marbella are relatively higher.Estepona and Mijas already in 2022 saw more building approvals, with 1,067 and 909 residences respectively, compared to 690 residences in Marbella.

 

• The tourism market and its impact on southern Spain: 

There is no doubt that the above-mentioned factors also specifically include tourist areas in southern Spain such as Marbella, Estepona, and Málaga on the Costa del Sol, which witness a high demand in buying luxury real estate. This contributes to the continuous rise in prices, thanks to its tourist attractiveness and the variety of real estate investment options, including luxury apartments and villas.

 

 

• Sustained growth in Spain's real estate market: 

Sustaining the growth of the real estate market means Maintaining stable and long-term growth in the real estate sector thanks to positive economic policiesso that the demand for luxury real estate continues and the real estate market remains attractive for investment projects for all investors from all over the world. This is what the real estate market in Spain in general and Marbella in particular where it has maintained its attractiveness over the previous years, and until now, due to for many factors that we have mentioned in our Our previous articles.

 

In conclusion, real estate investment in Spain, especially in Marbella, represents a promising opportunity for investors due to the continuous growth in market size, increasing prices, and strong demand. With the market expected to rebound in the coming years, Spain remains a prime destination for real estate investment thanks to the stability and attractive returns it offers.

Don't miss the opportunity to invest in Marbella real estate, where you can take advantage of the many benefits offered by one of the most beautiful regions in the world. Visit our page to see all of our properties we have availableand don't hesitate to ask your inquiries. We are here to serve you at all times, and we endeavor to provide the best support to achieve a successful and profitable investment.