Economic Boom: How Luxury is Transforming the Region
Over the past decade, the Costa del Sol has become one of the most attractive destinations for wealthy buyers from around the world. While this corner of Spain was once associated exclusively with summer vacations, it has now become a true economic engine for the province. Analysts estimate that the luxury real estate segment accounts for about one-tenth of the region’s total gross product. This contribution is hard to overstate: thousands of people find jobs thanks to the construction and maintenance of luxury properties.
In the famous “Golden Triangle” — Marbella, Benahavís, and Estepona — six out of ten new jobs are directly or indirectly linked to the premium housing market. Each new villa, with an area of about 1,500 square meters, requires the involvement of more than fifty specialists during construction. Once completed, the property provides ongoing employment for an entire team: from managers to gardeners and security staff. As a result, more than 2,500 people are now directly employed in this sector, and another 5,500 — indirectly.
Impact on Related Sectors and the Investment Climate
The growth of the luxury real estate market has a marked impact on many other sectors. Demand for architects, engineers, designers, as well as automation and climate control specialists, is rising every year. But it doesn’t stop there: the hospitality industry, retail, car dealerships, IT companies, and service providers are also seeing increased activity. This multiplier effect makes Costa del Sol one of the most dynamic regions in Europe.
Experts note that each completed project triggers a chain reaction: new jobs are created, investment grows, and the region strengthens its position on the international stage. The market’s demonstrated stability attracts not only private individuals but also major funds seeking long-term investments.
Record-high prices and new quality standards
The cost of prime properties in Marbella and Benahavís reached historic highs in 2025—around €5,400 per square meter. Estepona’s prices are slightly lower but still impressive—over €4,000. Over the year, prices have risen by 9–16%, reflecting both high demand and limited supply. For the first time in years, the market shows a balance of profitability, stability, and quality of life that is hard to find elsewhere in Europe.
Buyers are increasingly choosing not just a second home, but a permanent place of residence. They are drawn by the mild climate, developed infrastructure, international schools, and a high level of safety. All of this creates a unique atmosphere where comfort meets prestige.
Geography of demand: Who is choosing Costa del Sol
The profile of buyers has changed significantly in recent years. While the main clients used to be British, Germans, and Scandinavians, they have now been joined by Americans, Canadians, and residents of Gulf countries. This shift was facilitated by the launch of direct flights from Málaga to New York and Doha. The British still lead among foreign buyers, accounting for 22% of transactions. They are followed by Latin Americans and Germans (15% each), as well as residents of northern countries.
Belgians, Dutch, and Luxembourgers make up another 12% of the market, while Americans and Gulf country nationals account for 10% and 8% respectively. This diversification makes the market resilient to external shocks and helps maintain high demand even during periods of global instability.
Forecasts: What awaits the market in 2026
After a record-setting 2025, experts expect moderate price growth and a gradual saturation of the market. In Marbella, the price per square meter may increase by 2–6%, in Benahavís by 3–5%, and in Estepona by 4–7%. The rapidly developing Sotogrande area is forecast to see annual price rises of 3–6%. The main driver is the limited supply of quality properties and sustained interest from foreign investors.
Buyers are increasingly considering Costa del Sol as a place for permanent residence, not just vacation. This is changing the nature of demand and driving the development of new services aimed at meeting residents’ long-term needs.
As RUSSPAIN previously reported: who is behind the success of Pure Living Properties
Pure Living Properties is one of the leading companies in the Costa del Sol luxury real estate market. Founded over ten years ago, it quickly secured a top position thanks to its personalized approach and deep knowledge of the local market. The agency’s portfolio features hundreds of exclusive properties in Marbella, Benahavís, and Estepona. The company actively implements innovative solutions, with a strong focus on sustainability and energy efficiency in its new projects.
Javier Nieto, CEO of Pure Living Properties, is recognized as one of the most influential experts in the premium real estate sector in southern Spain. Under his leadership, the agency is not only expanding its sales geography but also setting new standards for customer service. Pure Living Properties regularly publishes analytical reports that serve as benchmarks for investors and industry professionals. As a result, the brand has earned the trust of both local residents and international buyers.
