NEWS

Marbella
What is written about it (current situation)
Advantages:
• Highly sought after internationally, with buyers from the UK, Middle East, North America.
• Luxury homes retain their value well; in exclusive areas such as the Golden Mile, prices are very high (multi-million villas).
• Significant shortage of prime luxury supply, which drives prices up.
• Strong mix of holiday rentals (“short-term rentals”) and permanent residency. Tourism remains very important; occupancy rates are high in peak season.

Disadvantages / points of attention:
• High entry price: you pay a premium for location, prestige, and infrastructure.
• Possible saturation in ultra-luxury segments or oversupply of very expensive projects; transactions in these segments may take longer.
• Higher maintenance and ownership costs in luxury properties, as well as taxes, community fees, etc. Possible risks from regulations on short-term rentals.

Future outlook and price trend
• Prices are still rising, especially in Marbella (notably in the luxury segments). Annual growth of 5-8% is mentioned for these segments.
• The Golden Triangle (Marbella, Benahavís, Estepona) remains a leading area in terms of demand and price.
• Growth towards eco-conscious homes, sustainable technology, etc. These “premium features” are becoming increasingly important and can add value.

Rental yield & investment
• Rental in tourist seasons can be very lucrative, especially for luxury villas or apartments close to the beach/amenities.
• Long-term rental also remains attractive, particularly among expats, retirees, and people who live/work there semi-permanently.
• Net return (“gross yields”) often range between 5-7% in good rental locations with luxury character. Sometimes higher depending on location and typical rent levels.

Estepona
What is written about it
Advantages:
• Slightly lower entry cost than Marbella but with good facilities, increasingly developed infrastructure, and more luxury projects.
• Very good rental potential, both short-term (holiday rentals) and long-term.
• Strong price increases forecast: Estepona is among the municipalities with the highest annual percentage growth on the Costa del Sol (17-18% in some reports).
• Increase in new-build projects, more modern homes, better facilities (beachfront, promenades, restaurants, etc.).

Disadvantages / points of attention:
• Slightly further from the airport and some international connections than Marbella or Málaga. Possibly with less “glamour” or prestige than Marbella, which matters for some tenants/investors.
• Housing / infrastructure / roads / parking etc. in emerging areas still have room for improvement.

Future outlook and price trend
• Price per square meter in Estepona in April 2025 is around €3,850/m² in some reports.
• Price increases of around 15-20% per year are reported in various sources, depending on district and property type.
• Expected to continue, especially in areas near the beach, good amenities, new developments. Possibly slightly slower growth than Marbella in the long run, once higher price levels limit some buyers.

Rental yield
• Gross rental yield of 5-7% possible in good locations / holiday properties.
• For longer leases (non-touristic) usually somewhat lower, depending on maintenance and location.

Mijas
What is written about it
Advantages:
• Slightly lower price than Marbella, meaning “more value for money”, especially if you accept being a bit further from top-end luxury amenities.
• Good location: Mijas Costa is popular, La Cala de Mijas is in demand, accessibility is reasonable, many facilities, beach, etc.
• Growing demand from abroad, people who combine permanent residence with holiday home, teleworkers, etc.

Disadvantages / points of attention:
• Lower prestige and “luxury brand” than Marbella, so possibly lower rents in the very top segment.
• Depending on the district, distance to the airport, international services, luxury amenities (e.g. high-end restaurants, beach clubs) may be greater.

Future outlook and price trend
• Average price per m² in Mijas is around €3,850/m² (as of August 2025), with year-on-year growth of ~16-17%.
• Price growth along the Costa del Sol is among the strongest in Mijas; often cited as one of the municipalities with the highest percentage increase.

Rental yield
• Rental prices per m² are slightly below Marbella / Estepona, but still considerable. For apartments near the beach or in popular districts, yields can be good, especially in holiday rentals.
• For long-term rental (non-touristic) yields are lower, but steady.

Comparison: Which location is better suited to your goal?

Expectation: Will prices continue to rise?
Yes, most analyses indicate that prices will continue to increase, though more gradually than the sharp peaks of recent years.

Key drivers for future growth:
• Limited supply of good/affordable land in prime locations = scarcity keeps prices high.
• Ongoing international interest, tourism & seasonal rentals support the market.
• Improvements in infrastructure, facilities, and (increasingly) sustainability standards → properties meeting these will gain more value.

Risks that may slow growth:
• Macroeconomic factors: interest rates, inflation, economic slowdown in Spain or Europe.
• Regulation of short-term rentals (Airbnb etc.), taxes, permits.
• Rising construction and land costs.