The Costa del Sol property market has shown impressive growth in recent years. With rising prices and stable demand, the region remains attractive to investors. But what do these figures mean in concrete terms? We share a real-life example and analyse the main trends.
A practical example from Estepona
A concrete example from Estepona illustrates the value development: a flat that sold for €260,000 in 2016 now has a market value of €380,000. This represents a value growth of 46% over 8 years, or an average annual return of about 4.9% - excluding any rental income.
Broader market developments Costa del Sol
Recent figures from the region show:
- Price rise of 16% in Estepona (2023-2024)
- Average asking price of €3,908 per square metre
- For premium properties, this is at €7,591 per square metre
- Rental yield between 4-6% for long-term rental
Historical trend in property prices in Spain (2019-2024)(table):
| Year | Average price increase (%) |
| 2019 | 3,6% |
| 2020 | 1.7% (impact pandemic) |
| 2021 | 5,7% |
| 2022 | 6,4% |
| 2023 | 7,2% |
| 2024 | 8,1% |
Source: thinkspain.com.
In other words, invest in the Costa del Sol is certainly a worthy alternative to savings.
Factors behind the increase in value
Several elements contributing to this positive development are:
- International appeal
From Scandinavian families to British retirees - the Costa del Sol continues to attract people from all over the world. They come not just for the sun, but for the complete Mediterranean lifestyle. With more than 320 days of sunshine a year and a vibrant international community, everyone quickly feels at home here. - Top locations becoming rare
Especially in popular areas like Estepona and Marbella, available building land in prime locations is becoming increasingly rare. This creates a natural increase in value for existing properties, especially those with sea views or close to amenities.
Furthermore, the region also enjoys infrastructure improvements, a thriving tourism sector and a stable Spanish economy. Not to mention, the punishing golf courses and a wonderful climate for overwintering.
Outlook for the future
While historical results are no guarantee for the future, market fundamentals remain strong:
- Constant demand from northern Europe
- Development of new luxury projects
- Expansion of facilities and infrastructure
Note for investors: Real estate investments always involve risks. Historical price trends are no guarantee of future results. We recommend always seeking professional advice and doing your own thorough research before making an investment decision.
Personalised coaching by Alness
Making a real estate investment involves a lot. As a local expert, Alness helps you with:
- Finding the right location and estimating market value
- Due diligence and legal aspects
- The entire purchasing process from A to Z
Want to know more about investment opportunities on the Costa del Sol? Contact us for a personal interview.
