Real estate market forecast 2025

The imbalance between high demand for housing and low supply has been the dynamic of the last few years. Experts suggest that the real estate market in 2025 will not change much with respect to these factors but will be influenced by new trends such as energy efficiency and sustainability or falling interest rates. 

Socio-economic factors that will influence the real estate market in 2025 

There is a certain stagnation in the expansion of real estate supply, so house prices are expected to continue to rise during 2025, albeit in a more controlled manner than in previous years. Nevertheless, moderate inflation and lower interest rates will lead to a slight reactivation of real estate sales and purchases, moderating these price increases progressively. 

The real estate situation on the Costa del Sol has other peculiarities. The ‘Golden Triangle’ (Marbella - Benhavís - Estepona), was to consolidate its position in 2024 as one of the leading luxury investment areas in Spain, with more than 3,200 million euros. There are currently around 350 new developments on the Costa del Sol, of which almost 50% are concentrated in Marbella and the surrounding area. 

The PGOM in Marbella and the future of investments 

Marbella's General Municipal Development Plan will also bring changes to the real estate market. Its final approval, expected this year, will mean an extension of 3.5 million square meters of land for further construction. The new regulation of urban land is expected to attract more investment in housing. 

Marbella's peri-urban and tourist areas will continue to occupy a prominent place in the real estate market in 2025, with large foreign capital investment. In this respect it is worth noting that, according to historical data from the INE, more than 40% of property sales in the province of Malaga are executed in cash, i.e. without a mortgage.