Marbella’s Luxury Market: Momentum Builds for 2025 and Beyond
10th May 2025
The recently released Knight Frank Wealth Report confirms what we continue to experience firsthand: Marbella remains firmly on the global map as one of the world’s most desirable luxury home destinations.
In a market shaped by global trends and local insight, Marbella is not just keeping pace — it’s outperforming.
High Net Worth Buyers Are Driving the Market Forward
Knight Frank’s latest findings show that the number of High Net Worth Individuals (HNWIs) worldwide grew by 4.4% in 2024, outpacing global economic growth of 3.2%. This growth in wealth is directly fuelling demand for luxury real estate — and Marbella continues to benefit from this momentum.
Even amid tighter monetary policy and higher interest rates in recent years, Marbella’s property market has remained resilient. There are two key reasons:
Undervalued Market Recovery: Spain’s real estate sector has only recently returned to its 2007 pricing peak, making it attractive compared to more mature markets.
Debt-Resistant Luxury Segment: HNWIs are typically less reliant on financing, allowing them to continue purchasing even when credit conditions tighten.
Marbella Outpaces Global Luxury Growth
The numbers tell a compelling story:
Luxury property prices in Marbella rose by 7.2% — well above both Spain’s inflation rate and the global average of 3.1%.
According to Spanish Property Insight, Marbella property prices may have actually risen by 12% in the first half of 2024, with a 10% increase in sales.
Marbella now hosts five of Spain’s ten most expensive streets — a testament to its enduring appeal.
This puts Marbella in a league with the top-performing cities globally for high-end real estate.
Who’s Buying — and What’s Coming Next?
Knight Frank projects a further 28.1% global growth in HNWIs between 2023–2028, adding millions of new luxury buyers to the international property market. Much of this growth is expected to come from:
🇨🇳 Asia (+38%)
🇸🇦 Middle East (+28.3%)
🇦🇺 Australasia (+27%)
🇺🇸 North America (+25.7%)
Marbella — with its exceptional climate, infrastructure, and lifestyle — is well positioned to continue attracting this next wave of international investment.
Growth Brings Benefits — and Challenges
The rise of the luxury segment has brought significant investment to the Costa del Sol. Marbella today boasts:
World-class restaurants and sports facilities
A vibrant cultural and social scene
Beautifully maintained beaches and public amenities
One of the strongest high-end real estate markets in Europe
However, this growth isn’t without strain. The “Marbella Effect” — as reported by Spanish media in early 2025 — highlights concerns about housing affordability for local workers and service professionals.
For example:
In Istán, just 7.8% of listed homes are priced below €300,000.
In Ojén, that number falls to just 6.5%.
Rental stock under €1,000/month is virtually nonexistent, and seasonal-only rentals dominate the market.
While this doesn’t affect luxury buyers directly, it does touch the sustainability of the ecosystem that supports high-end living — from maintenance and security to hospitality and lifestyle services.
The good news? Awareness is growing, and conversations are happening at the policy level.
The Outlook for 2025: Bright, Balanced, and Building
With the Spanish economy leading eurozone growth in 2024 and Marbella’s real estate market showing no signs of slowing, the fundamentals remain extremely strong.
As an agency we continue to see demand from qualified international buyers, particularly from the UK, Scandinavia, the Netherlands, and the U.S., all seeking elegant villas and investment-grade properties in Marbella, Nueva Andalucía, the Golf Valley and the Costa del Sol in general.
Ready to Sell or Invest?
Whether you’re thinking of selling your home or looking to buy in Marbella, we offer personalised guidance and global exposure — with a deep local focus.
📩 Contact us today to learn how we can help you navigate Marbella’s thriving luxury market.
Published by David
