Property specialists in Nueva Andalucia

Luxury Home Construction and Renovation Booms in Marbella

8th June 2025

Luxury Home Construction and Renovation Booms in Marbella
High-end property development in Marbella is experiencing a significant surge. In just the first quarter of 2025, the town saw 72 million euros in PEM (Material Execution Project) investment - an increase of 18 million euros compared to the same period last year.

Marbella, long considered a symbol of luxury living on the Costa del Sol, is witnessing a sharp rise in both the construction of new upscale properties and the refurbishment of lavish villas. This trend is clearly reflected in data from the town hall’s urban planning department.

Following the local government council meeting on Monday, 3 June, Councillor for Urban Planning José Eduardo Díaz confirmed a 34% year-on-year increase in investment from January to March. He explained that the PEM metric indicates not just more construction, but a marked improvement in the quality and specifications of homes being built.

“This upward trend confirms the growing interest in Marbella among investors, builders, and property developers,” Díaz said.

Rise in Building Permits and Consultations

The number of building permits issued also rose in the first quarter of 2025, with 427 permits granted - up from 400 during the same period in 2024, marking a 7% increase.

In terms of consultations, Díaz noted a significant uptick in public engagement. While 39,000 consultations were recorded throughout 2024, the department has already handled 17,000 inquiries in the first three months of 2025 alone.

New Developments Approved

The town hall has also approved new building permits for three single-family homes and a 1,500-square-metre shopping centre in the southern part of Nueva Andalucía (La Campana). The shopping centre is privately funded with a 3.2 million euro investment, while the combined value of the three homes stands at 2.2 million euros.

Díaz praised the urban planning department's adaptability despite working with an outdated planning framework - the current plan being a mere update of the one from 1986. He emphasised the department’s commitment to streamlining administrative processes and reaffirmed the goal of implementing the new General Municipal Development Plan (PGOM) before the end of the year.


Published by David

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