Costa del Sol 2025: Why It Remains a Prime Real Estate Investment Hub

Market Trends and Property Growth
In 2025, the Costa del Sol property market continues its upward trajectory, with prices expected to climb by as much as 9-10% in sought-after areas such as Marbella, Estepona, and some locations up to 14% increase!

What’s driving this rise? A powerful mix of strong demand and limited supply, especially in prime locations and luxury segments.

Take Estepona as an example: over the past years, property values have risen by 12% per year, fueled by its blend of upscale living, lifestyle appeal, and the wide range of leisure activities the region offers.

Rental Yields and Investment Potential
The Costa del Sol rental market continues to offer strong opportunities for investors. Short-term tourism rentals generate impressive gross yields of 9% to 14%, with net returns typically ranging between 5% and 8% once taxes and expenses are accounted for.

Locations such as Estepona and Mijas stand out as prime rental hotspots, combining strong tenant demand with competitive yields, an ideal formula for savvy investors.

International Buyer Appeal
In 2025, the Costa del Sol continues to capture strong international interest and not only because of its famous sunshine. Buyers from more than 28 countries, including the UK, Germany, the Netherlands, and North America, have already invested in the region this year.

What’s fueling this popularity? To start, the climate: with roughly 300 days of sunshine annually, the Costa del Sol is a natural choice for those seeking a holiday home or an investment property in a warm setting.

Beyond the weather, the region offers an enviable lifestyle - relaxed yet vibrant - with world-class golf courses, scenic hiking trails, golden beaches, and a thriving dining and nightlife scene.

Supporting this is a modern infrastructure, with excellent connectivity across the coast and convenient access through Malaga airport. Adding to the appeal, a favourable tax environment makes the Costa del Sol particularly attractive to affluent international investors.

If you are interested in a property in the Malaga region, including Mijas, Marbella, Estepona or maybe Nerja, please contact Istvan Pasku at istvan@pasku.co email address.