Published: 19 November 2025
Investing in property in Marbella is a key question for many international buyers in 2025. Marbella remains one of Spain’s strongest and most desirable real estate markets, known for its stability, high luxury demand, and long-term appreciation. With rising international interest, limited buildable land, and exceptional rental occupancy, Marbella continues to outperform most coastal markets in Spain.
How is the Marbella real estate market performing in 2024?
Marbella’s property market has shown consistent growth over the last five years, supported by strong foreign demand and constrained supply. According to the Spanish Land Registry, property transactions in Marbella increased by 12 percent in 2023 compared with 2022. This momentum has kept Marbella ahead of many neighbouring Costa del Sol towns.
Investing in property in Marbella remains attractive due to its resilience. Even during periods of global uncertainty, Marbella’s luxury sector has continued to perform above national averages. Buyers come from Europe, the Middle East, and North America, seeking lifestyle benefits, climate, and long-term asset protection.
“Marbella property transactions rose by 12 percent in 2023 compared with the year before.”
What factors are driving foreign investment in Marbella?
Foreign investors are drawn to Marbella for several reasons: its mild Mediterranean climate, international schools, premium healthcare, and a globally recognised lifestyle brand.
Previously, the Spanish Golden Visa programme encouraged non-EU buyers to invest; however, the Golden Visa has been discontinued and is no longer available in Spain. Despite its removal, demand from foreign buyers remains exceptionally strong, driven by lifestyle, safety, and financial security rather than residency incentives.
Investing in property in Marbella is also appealing due to strong rental yields—especially in beachfront areas, golf communities, and luxury villa zones. Foreign buyers account for roughly 40 percent of all property transactions, highlighting the city’s international appeal.
Are property prices in Marbella rising or stabilizing?
Property prices in Marbella rose by approximately 8 percent in 2023, with the highest increases in the Golden Mile, Sierra Blanca, and premium beachfront districts. The average price per square metre is now around €4,000—significantly higher than most surrounding towns.
Although growth has moderated since the rapid post-pandemic surge, experts predict steady appreciation in 2024–2025. Limited land and strict planning regulations continue to reinforce long-term price stability.
Average Price Comparison (€/m²)
| Location | Avg Price 2022 | Avg Price 2023 | Change |
|---|---|---|---|
| Marbella Golden Mile | €5,500 | €6,000 | +9% |
| Nueva Andalucia | €4,200 | €4,550 | +8% |
| Estepona | €3,200 | €3,450 | +7% |
Investing in property in Marbella therefore remains compelling for buyers seeking capital appreciation.
How do Marbella property taxes compare to other Costa del Sol towns?
Marbella’s taxes are slightly higher than in Estepona or Benahavís, but still competitive by European luxury market standards.
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IBI (annual property tax): 0.4%–1.1%
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Transfer Tax on resales (ITP): 8%–10%
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New-build tax: 10% VAT + 1.2% Stamp Duty
Tax Comparison Table
| Town | IBI (Annual) | Transfer Tax | VAT + Stamp Duty |
|---|---|---|---|
| Marbella | 0.4–1.1% | 8–10% | 10% + 1.2% |
| Estepona | 0.3–0.9% | 8–10% | 10% + 1.2% |
| Benahavís | 0.3–0.9% | 8–10% | 10% + 1.2% |
According to Quintessentia Property Advisors, investors often accept slightly higher Marbella taxes because the market delivers stronger returns and liquidity.
How strong is rental demand in Marbella?
Marbella is one of southern Europe’s most consistent rental markets, supported by tourism, digital nomads, and ongoing relocations. Holiday rentals near the Golden Mile and Puerto Banús achieve near-full occupancy in peak months.
Investing in property in Marbella can generate rental yields between 4% and 6%, with luxury villas achieving even higher short-term returns. Marbella welcomed over two million visitors in 2023, ensuring ongoing demand.
“Rental yields in Marbella range from 4 to 6 percent depending on property type and location.”
What risks should investors consider?
Although Marbella is a robust and mature market, investors should be aware of:
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Interest rate fluctuations
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Economic cycles
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Municipal regulations affecting short-term rentals
Andalucía has started to tighten short-term rental rules, making compliance essential. However, Marbella historically rebounds faster than other coastal cities due to strong international demand and limited supply.
Investing in property in Marbella is considered lower-risk when buyers focus on prime locations, reputable developers, and well-managed communities.
How does Marbella compare to Estepona and Benahavís for investment?
Marbella is the flagship market of the Costa del Sol, offering unmatched liquidity, global appeal, and rental performance.
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Estepona provides more affordable entry prices and is experiencing fast growth.
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Benahavís is known for ultra-luxury villas on large plots, particularly in gated communities.
Investment Comparison
| Location | Avg Price €/m² | Annual IBI (Villa) | Investment Profile |
|---|---|---|---|
| Marbella | ~€4,000 | €2,500–€4,500 | High demand, best liquidity, strong yields |
| Estepona | ~€3,450 | €1,200–€2,500 | Growth market, lower entry prices |
| Benahavís | ~€3,600 | €2,000–€3,500 | Quiet luxury, large villa estates |
Investing in property in Marbella offers the fastest resale potential and strongest brand recognition internationally.
How accessible is financing for foreign buyers?
Spanish banks actively lend to foreign buyers, typically offering:
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60–70% LTV mortgages
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15–25 year repayment terms
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Interest rates between 3% and 4%
Foreign buyers must provide proof of income, identification documents, bank statements, and tax returns. The strong availability of financing supports Marbella’s international buyer base.
What future trends are expected in Marbella real estate?
Experts predict increased demand for:
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Sustainable, energy-efficient villas
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Modern smart homes
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High-end renovation properties
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Homes with privacy and security features
With very limited land left for development, prices in premium areas such as Sierra Blanca and the Golden Mile are expected to continue rising.
Investing in property in Marbella is also gaining greater interest from buyers in North America and the Middle East, further diversifying the market.
“Limited land supply ensures Marbella’s prime areas will continue appreciating in value.”
FAQ
Is Marbella’s property market stable for long-term investors?
Yes. It is one of Spain’s most stable markets thanks to global demand, limited supply, and high rental occupancy.
Do foreigners face restrictions when buying in Marbella?
No. Foreign buyers can purchase freely with an NIE and Spanish bank account.
What are the main additional costs?
Buyers should budget 10–12% for taxes, notary fees, and legal costs.
Are rental permits required for holiday lets?
Yes. A licence from the Andalusian Tourism Registry is required for legal short-term rentals.
Which areas offer the best investment potential?
The Golden Mile, Nueva Andalucia, and Sierra Blanca offer the strongest long-term value and demand.
