The real estate market in the province of Malaga continues to show an upward trend in 2025, with varying price increases by area and type of property. This makes it an excellent time to consider investing in real estate along the Costa del Sol. Here are some reasons why this region is currently so attractive to potential investors.
Steady price increases
Property prices in the city of Malaga are expected to rise by about 3%, in line with inflation. Specific neighborhoods such as Ciudad Jardín, Martiricos, and Cruz del Humilladero may see increases of 3% to 5%, while areas like Carretera de Cádiz could experience slightly higher increases of 5% to 6%. In eastern neighborhoods such as Cerrado del Calderón and El Limonar, as well as newer western areas like Teatinos or the Zeta district, prices could rise by more than 6%. In tourist areas like Marbella, property values are expected to stabilize, but in Manilva and parts of Estepona, price increases could exceed 7%.
Development of dormitory towns
With the increasing popularity of Malaga and rising price levels in the city center, many people are moving to surrounding towns such as Torremolinos, Benalmádena, Mijas, and Rincón de la Victoria. Additionally, Cártama is predicted to develop into a significant dormitory town with new urban developments. This offers investors opportunities to invest in these emerging areas before prices rise significantly there.
Stable tourist demand
The Costa del Sol is a world-renowned tourist destination, ensuring a stable demand for vacation rentals and luxury real estate. Especially cities like Marbella remain popular hotspots for both tourists and wealthy individuals, ensuring a constant demand for properties in the higher segment. The luxury real estate segment on the Costa del Sol has recorded a growth of 3.17% in the past year, with an average price of 5.25 million euros per property and a value of approximately 7,185.24 euros per square meter. In Marbella, the average price per square meter is 12,855.63 euros, making it the most expensive city in the province for luxury real estate.
New developments and inflation protection
The planned urban developments, especially in areas like Cártama, offer early investors the chance to benefit from new construction projects and infrastructure improvements. Moreover, investing in real estate provides a certain level of protection against inflation. With expected price increases in line with or above inflation, investors can maintain and potentially increase their purchasing power.
These trends underscore the ongoing growth and dynamism of the real estate market in the province of Malaga and along the Costa del Sol. With the right investment strategy, this area can be a valuable addition to a real estate portfolio, thanks to stable growth, diversification, and potentially high returns.
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