AVERAGE property prices in Marbella are now more than three times the Spanish national average, confirming its status as Europe’s new ultra-luxury capital.
According to The Marbella Property Market Report 2025 by Panorama Properties, the city has entered a phase of structural maturity, characterised by record values, a chronic shortage of supply, and sustained demand led by international investors.
The report, written by Panorama Properties CEO Christopher Clover, reveals that Marbella’s average sale price has reached €711,138, compared to the national figure of €210,361.
This, according to the report, shows how Marbella has transformed itself from a resort destination into one of Europe’s most coveted luxury real estate markets and is now competing with the likes of Saint-Tropez, Gstaad and Dubai.
According to Spain’s Notarial Statistics Portal, Marbella’s real transaction prices hit €4,228 per square metre in the 12 months to September 2025, rising to €4,509/m² during the summer quarter, which was a 12.6% annual increase.
The so-called ‘Golden Triangle’ of Marbella, Estepona and Benahavis had a total of 8,708 property transactions in 2024, 31% above pre-pandemic levels.
The Golden Mile and Nagüeles remain the most expensive enclaves, averaging €5,753/m², followed by Nueva Andalucia and Puerto Banus (€4,225/m²), and Marbella East (€3,857/m²).
At the top of the market, Puente Romano beachfront apartments are fetching €30,000/m², while high-end villas in Nueva Andalucia reach €14,000/m², mirroring the prices of the world’s top-tier resorts.
“Marbella has stepped onto the world stage as never before and is now recognised alongside global hubs like Dubai and Miami,” Clover said. “We’ve reached a structural ‘new normal’ that extends far beyond the post-pandemic surge.”
Despite soaring values, the city’s market remains largely immune to interest rate fluctuations. “Less than 10% of homes above €2 million are bought with mortgage financing,” Clover explained. “That speaks volumes about the financial strength of Marbella’s clientele.”
This high purchasing power has created what Panorama calls a ‘solid and sustainable price base’, supporting steady growth across all residential and commercial sectors.
Clover predicts continued, albeit moderate, appreciation. “Prices will keep rising – but at a more balanced pace – as demand and quality continue to evolve together,” he said.
The typical buyer in Marbella today is younger, wealthier, and increasingly international. The average age stands at 52, with more than half between 41 and 60 years old.
Foreign buyers dominate the market, representing 63.1% of all acquisitions in the year to September 2025.
Britons lead the rankings (13.4%), followed by Dutch (9.6%), Swedish (8.8%), Germans and Poles. Interest from North American and Middle Eastern buyers has also surged, buoyed by new direct flights to Malaga.
This new wave of residents is no longer just buying vacation homes. Many are choosing to settle permanently, attracted by the Digital Nomad Visa and Spain’s Non-Lucrative Visa, which enable professionals to live and work remotely. “Today’s buyers are not merely investing in property — they’re investing in lifestyle,” said Clover. “Marbella has matured into a long-term safe haven for capital, family, and wellbeing.”
One of the report’s standout findings is the rise of branded residences – luxury developments that merge architectural design with five-star hotel services. Marbella leads this European trend, surpassing Lisbon and the French Riviera, with more than a dozen such projects either underway or in development.
Flagship ventures include the Four Seasons Resort & Private Residences Marbella, designed by Richard Meier; Design Hills Marbella by Dolce & Gabbana; Karl Lagerfeld Villas in Istan; Versace Villas in Nueva Andalucia; The Summit by Elie Saab in Cascada de Camojan; Marea by Missoni at Finca Cortesin; and future St. Regis and Ritz-Carlton hotels planned from redeveloped sites.
“These world-renowned names align Marbella with international standards of excellence,” said Clover. “A Four Seasons presence alone will attract many high-net-worth individuals who’ve yet to discover the city’s magic.”
Beyond prestige, these developments generate employment, attract global capital, and bolster high-end services such as gastronomy, wellness and health tourism.
Yet, success brings strain. Marbella’s long-term rental market is buckling under pressure, with rents up 89% since 2019 – from €848 to €1,600 per month – and double-digit annual increases in prime zones.
The shortfall is pushing workers and families to neighbouring towns like Ojen, Coin, Guaro and Manilva, where rents are also rising rapidly.
“Demand vastly outstrips supply,” Clover warned. “The key will be maintaining growth in the luxury sector while ensuring that essential workers can continue to live here. Without that balance, Marbella’s social and economic ecosystem risks distortion.”
New regulations for tourist rentals introduced in 2024 and 2025 – including registration with Andalucia’s housing registry and approval from homeowners’ associations – are expected to bring more order to the market. Meanwhile, a state proposal to impose 21% VAT on short-term rentals could redirect some properties toward long-term leases, though at potential cost to the tourism sector.
On the planning front, Marbella took a major step forward this year with provisional approval of its new General Municipal Planning Ordinance (PGOM), which simplifies administrative procedures and offers long-awaited legal certainty to thousands of homeowners affected by annulled development plans.
Infrastructure is also improving: proposed projects include expanding the highway between Puerto Banus and San Pedro, advancing the coastal train initiative, and enlarging Malaga Airport, which plans to double capacity between 2027 and 2031.
Investments in desalination and water treatment aim to guarantee long-term water security – a key factor for sustainable growth.
Marbella’s economy reflects its maturity. The city now counts over 85,000 Social Security contributors and enjoys the lowest unemployment rate in its recent history. With just 9% of Malaga province’s population, Marbella generates 17% of all registered businesses, underlining its role as a regional economic powerhouse.
“Today’s buyers are more discerning and patient,” said Clover. “They know what they want – quality, sustainability, and lifestyle. Marbella’s market has evolved from speculative to selective.”
Ultimately, Panorama’s report concludes, Marbella’s enduring strength lies not just in its luxury properties but in its way of life. “Far beyond real estate,” Clover reflects, “Marbella’s true wealth is found in its culture, health, community, and the richness of experience that defines this remarkable city.”
Panorama Properties, founded in 1970 and regulated by RICS, is Marbella’s longest-established real estate agency. The full Marbella Property Market Report 2025 is available here.
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