Marbella: Europe’s Rising Star for High-Net-Worth Investors
6th September 2025
The annual report analyses the state of global High Net Worth Individuals (HNWIs) and Ultra High Net Worth Individuals (UHNWIs). The current picture is one of continued expansion, reflected in rising prices and sales in Marbella and the Costa del Sol more broadly.
This growth has occurred despite the tightening of monetary policy and high interest rates, which have hurt many other markets. Marbella – and Spain more generally – has been shielded from these effects for two main reasons:
Spain’s real estate market remained undervalued until recently, only now recovering to pre-2007 peak levels.
Luxury buyers are far less affected by interest rates, as they often purchase without financing or can comfortably service debt.
Meanwhile, the global number of HNWIs continues to rise faster than the economy itself. In 2024, HNWIs grew by 4.4%, while global GDP expanded by 3.2%, the same rate recorded by the Spanish economy – the fastest growing in the eurozone.
The Wealth Report also highlights a rebound in appetite for property investment: 44% of HNWIs plan to expand their real estate portfolios in 2025, while only 8% intend to reduce holdings.
Marbella punches above its weight
These dynamics are clearly reflected in Marbella’s property market. Knight Frank reports that luxury home prices in the city rose by 7.2%, significantly higher than both global averages (3.1%) and inflation.
Spanish Property Insight figures from late 2024 showed Marbella sales rising 10%, with prices increasing by 12% in the first half of the year – a performance placing Marbella among the top global property markets.
The city is also home to five of Spain’s ten most expensive streets, underscoring its long-term desirability. Over the past decade, prices have climbed more than 105%.
Looking ahead, Knight Frank forecasts a 28.1% increase in global HNWIs between 2023 and 2028, representing millions of newly wealthy individuals. Much of this growth will come from Asia (38%), followed by the Middle East (28.3%), Australasia (27%), and North America (25.7%). Marbella, with its strong reputation, is well placed to attract this new wave of demand.
Strengths and challenges
Marbella’s appeal is built on a strong economy, world-class infrastructure, and an enviable climate, all of which reinforce its position as a premier international destination.
The influx of wealth has also supported thousands of jobs, improved local amenities, and driven investment in sports facilities, restaurants, and beach infrastructure – enhancing quality of life for both residents and visitors.
However, rapid growth brings challenges. The so-called “Marbella Effect” refers to the shortage of affordable housing across the region. For example, Idealista data shows that in nearby Istán, only 7.8% of homes are listed under €300,000 (just 76 properties), while in Ojén the figure drops to 6.56%.
On the rental side, long-term housing below €1,000 per month is almost non-existent, with many landlords preferring lucrative short-term tourist lets. This creates difficulties for the workforce essential to Marbella’s luxury economy – the people providing services, maintenance, and hospitality.
Encouragingly, awareness of these issues has reached policymakers and investors, sparking conversations about how to balance luxury demand with the need for sustainable housing.
Outlook
Despite these challenges, Marbella’s momentum remains strong. The city and wider Costa del Sol combine natural beauty with robust economic fundamentals, making them a magnet for global wealth. With luxury property continuing to outperform international markets, Marbella is set to remain one of Europe’s most desirable destinations for years to come.
Published by David
