The Real Map of Costa del Sol Real Estate Market Growth in 2025: Beyond Marbella

The real estate market in Malaga province continues to prove itself as one of the most resilient and dynamic in Europe. If you are looking for a solid investment with significant future potential, the key question is: what is the outlook for Costa del Sol real estate market growth 2025? At Sunstay Rentals, with our head office conveniently located in Los Álamos, Torremolinos, we have analyzed data from leading sources (Fitch Ratings, Bank of Spain, Idealista) to provide a clear view. The general forecast points to a sustained and healthy price increase, with estimated rises ranging between 3% and 8% across the province. However, the real value is found when looking closely at the areas with the greatest potential, where Torremolinos is emerging as a star player on the Costa del Sol.

📊 Key Figures Driving the Costa del Sol in 2025

The engine of this growth is no accident; it is the result of several economic and socio-demographic factors that consolidate the region as a top-tier investment destination.

Foreign Demand: The Unwavering Factor

One of the pillars of the market is the strong and constant international demand. Unlike other areas in Spain, the Costa del Sol benefits from a high proportion of foreign buyers, which in Malaga province exceeds 34% of transactions, and in key municipalities like Marbella, it is even much higher.

• EU and Non-EU Buyers: Countries like the UK, Germany, the Netherlands, and the Nordics continue to lead the acquisitions, attracted by the climate, quality of life, and modern infrastructure.

• The Digital Nomad Visa: This new legal framework has increased the demand for properties for extended stays, boosting both the purchase/sale and the long-term rental market.

🚀 Torremolinos: The Epicenter of Smart Growth on the Costa del Sol

While prices in the “Golden Triangle” (Marbella, Estepona, Benahavís) have seen very high increases, Torremolinos is positioned with an exceptionally attractive quality-price-profitability ratio, especially for investors seeking high returns. Our office in Los Álamos gives us a first-hand view of this evolution.

• Significant Price Growth: Data from the end of 2024 already showed that the price per square meter in Torremolinos has skyrocketed with double-digit increases (close to 15-20% year-on-year in some areas), placing the average price above €3,300/m² in parts of the municipality. The forecast for 2025 is that this momentum will continue, albeit more stably.

• High Rental Profitability: The gross rental profitability in Torremolinos is remarkable, often exceeding 11%. The average rental price per square meter has risen significantly (surpassing €16/m²), consolidating it as one of the best options for vacation rental and long-term investment.

Investing in Emerging and Established Areas of Torremolinos

The key is not just where to buy, but what to buy. The urban renewal of Torremolinos and its surrounding areas on the Costa del Sol is revaluing historical areas and creating new centers of interest.

• Highest Value Areas: La Carihuela – Los Nidos and El Bajondillo are prime areas for holiday rentals, with high purchase prices but constant tourist demand that ensures high occupancy.

• Areas with Highest Growth Potential: El Pinillo and Montemar remain excellent options, offering properties with more competitive entry prices and significant medium-term appreciation potential.

• The New Build and Sustainable Niche: New developments in Torremolinos and Benalmádena are incorporating sustainability and energy efficiency criteria, a growing trend that ensures greater future demand and value.

🤝 Your Strategic Partner for Real Estate Success in 2025

The 2025 outlook is clear: real estate investment on the Costa del Sol remains a safe bet, but it requires professional management and deep local knowledge.

At Sunstay Rentals, we don’t just help you find the property with the best growth potential in the area from Nerja to Mijas Costa (focusing on our Torremolinos hub); we optimize your investment through our specialized services:

• Vacation Rental Management: We maximize your short-term rental income, handling everything from marketing to maintenance.

• Long-Term Rentals: We guarantee tenant selection and the stability of your income.

• Purchase/Sale Services: Our expert team assists you at every step, ensuring the best transaction.

The time to act is now. Don’t let the opportunities in this growing market pass you by. If you want to capitalize on the strong Costa del Sol real estate market growth 2025, you need a partner who understands the real profitability of areas like Torremolinos.

Contact us today and discover how we can turn your investment into a resounding success. We invite you to explore our property listings for sale and our comprehensive management services to take the first step toward your success.

FAQ (Frequently Asked Questions)

Is a Real Estate Bubble Expected on the Costa del Sol in 2025?

No. Analysts (such as Fitch Ratings and the Bank of Spain) agree that growth is sustainable and driven by real and solvent demand. Price increase rates are moderating at a healthy pace (between 3% and 8% in the province), indicating stabilization, not a bubble.

Which Areas on the Costa del Sol Offer the Highest Rental Yield?

Although Marbella has the highest purchase prices, developing areas such as Torremolinos and Benalmádena are offering a higher rental yield (exceeding 11% gross yield in Torremolinos) due to strong tourist and long-term rental demand, combined with more accessible purchase prices than the “Golden Triangle.”

Is It Better to Buy New or Resale Property in Torremolinos?

Both have advantages in 2025. New build properties offer greater energy efficiency and modern design, ensuring higher future demand. However, resale properties in prime areas (like La Carihuela) and in good condition allow for faster entry into the holiday rental market and often have a lower price per square meter.