As we have reached the midpoint of 2025, the Costa del Sol property market continues to demonstrate resilience, buoyed by the solid foundations laid in 2024. Last year’s performance, detailed in Mojo Estates’ exclusive Property Insight report, shows how the region navigated high interest rates, strong international demand, and a surge in new-build activity—factors that still influence market behaviour today.
In 2024, Malaga province recorded 37,790 home sales, up 7% from 2023 and 15% above the ten-year average. It was the second-best year on record, highlighting sustained buyer confidence despite broader European economic uncertainty (Property Market Report 2024, p.4). International buyers remained a major force, with 14,475 transactions—39% of total sales—reinforcing the province’s reputation as one of Spain’s most international real estate markets (Property Market Report 2024, p.4). While their market share dipped slightly from 40% in 2023, this shift hinted at a modest resurgence in domestic demand, a trend we’ve seen continue into early 2025.
One of 2024’s standout stories was the new-build segment. 5,360 new units were sold, a 56% increase year-on-year and more than double the ten-year average (Property Market Report 2024, p.4–5). Developers responded to this demand with 9,349 new housing starts—up 29% from 2023 and four times higher than a decade ago (Property Market Report 2024, p.8).
Jacob Johansen, Co-Founder of Mojo Estates, noted at the time, “The surge in new-build demand reflects the market’s appetite for modern, energy-efficient homes with premium amenities. International buyers are willing to invest in quality.” That appetite has carried into 2025, but with tighter build schedules and supply chain pressures now influencing delivery times.
Prices and Value Shifts
Last year, average home prices in Malaga province rose 9% to €315,274, while newly built homes averaged €378,604, increasing by 3% (Property Market Report 2024, p.6). Marbella led the premium market, with asking prices of €4,803/m², up 13% year-on-year and 68% over the past five years (Property Market Report 2024, p.7).
Per Mønsted, Mojo Estates’ Co-Founder, commented, “We’re seeing a narrowing gap between high-quality resales and new-builds.” That prediction has proven accurate—early 2025 data suggests competitive pricing between prime resales and newer developments, particularly in Marbella and Estepona.
Rental Market Performance
The rental sector was another bright spot in 2024, with Malaga’s prices climbing 55% since 2020 to an average of €15.20/m², and €16.40/m² in the historic centre (Property Market Report 2024, p.3 & p.9).
Long-term yields averaged 7.8%, reaching 10% in select areas, while holiday lets maintained strong occupancy despite tighter licensing in municipalities like Marbella and Benahavís (Property Market Report 2024, p.11). These figures set the tone for 2025, where rental demand remains intense due to limited long-term supply, though rising living costs may start to moderate price growth.
Tourism and Infrastructure Impact
Tourism infrastructure continued to fuel the market in 2024. Malaga-Costa del Sol Airport welcomed 24.9 million passengers, an 11.5% annual increase and up 81.6% over the decade (Property Market Report 2024, p.2 & p.9). This influx supported both property sales and rental occupancy rates. While passenger growth in early 2025 has steadied, connectivity remains a cornerstone of Costa del Sol’s real estate appeal.
Looking Forward
The story of 2024 was one of adaptation: to higher borrowing costs, evolving buyer preferences, and a competitive new-build pipeline. As 2025 unfolds, Mojo Estates sees a market defined by selective demand—buyers prioritising location, lifestyle, and value over volume. As Jacob Johansen put it, “The fundamentals are solid—low supply in key areas, high international demand, and a lifestyle that’s second to none.” (brochure Mojo Estates 2025, p.5).
Property Showcase: Luxury Living in Reserva del Higuerón
This elegant four-bedroom, four-bathroom villa for sale in Reserva del Higuerón, Benalmádena offers a prime combination of comfort, space and style. With 380 m² of interior living and 94 m² of terrace space, the home includes a private swimming pool, a garden, and two dedicated parking spots. Priced at €1,795,000 with only 7% ITP, it stands out as one of the best-value properties per square metre in this exclusive enclave.
The villa sits within a secure gated community, just a short walk from the beach and the facilities of the Hilton Hotel. Inside, it features a fully fitted kitchen with premium appliances, air conditioning, and spacious living areas designed for relaxed Mediterranean living. The covered terrace and outdoor dining area make it perfect for entertaining or unwinding while taking in the panoramic sea views.
Its location offers convenience without compromise. Close to golf courses, shopping centres, top schools and the lively Benalmádena town centre, this brand-new property delivers both lifestyle and long-term value. A rare opportunity in one of the Costa del Sol’s most prestigious neighbourhoods.
For the full 2024 analysis and current market opportunities, read here.
Contact Details
Mojo Estates
Centro Idea, Ctra. de Mijas km. 3,6
29651 Mijas, Málaga · Get directions
📞 (+34) 951 774 547 | (+45) 427 229 16
✉️ info@mojoestates.com
Follow Mojo Estates on: