The Hidden Opportunities in a House Buying Costa del Sol
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Buying a house in Costa del Sol offers exceptional opportunities in 2025, as Dutch house prices have increased by an average of 40% since 2020, while Spanish property prices still remain attractive. This popular Spanish coastal region is establishing itself ever more strongly as one of the most sought-after destinations for real estate investment, with constantly growing international demand.
If you are considering buying a house on the costa del sol, it is important to know that the average price has increased from €2,180/m² in 2020 to €2,890/m² in 2023, with an expected price of €3,250/m² in 2025. The outlook is especially favorable for new-build homes. Property prices in Spain are expected to rise moderately between 2.8% and 4%, with some areas such as Manilva and parts of Estepona even seeing price increases of more than 7%. In addition, falling mortgage rates to around 2.1% are making financing more accessible.
If you are thinking of buying a house in Spain Costa del Sol, now is the time to act. The market for new construction is developing rapidly, with growing demand for energy-efficient homes with certifications such as the Passivhaus standard. Estepona is currently home to some of the most promising new developments, with property prices steadily rising to an average of €4,017/m². In this guide you will discover where the hidden opportunities lie and how to invest smartly in your dream home on the Costa del Sol.
The 5 best areas to buy a house on the Costa del Sol
The Golden Triangle on the Costa del Sol remains the backbone of the real estate market in 2025, but savvy buyers are now also looking at emerging areas with growth potential. When considering buying a home on the costa del sol, these five regions are of particular interest.
1. Estepona: Authentic and on the rise
Estepona retains its authentic Spanish charm while evolving into a luxury destination. The “new golden mile” around Estepona is attracting more and more buyers, and experts predict that home prices here will continue to rise. The development has been carefully planned with an emphasis on walkability, sustainability and green spaces. For new construction, West Estepona and Seghers are prime locations, with modern villas and apartments combining sophisticated architecture with large green areas. Particularly promising are the new construction projects in La Resina, Las Mesas and Arroyo Vaquero.
2. Mijas: Affordable and family-friendly
Mijas offers an attractive combination of affordability and authentic Spanish culture. The area is known for its traditional architecture and picturesque surroundings. In Mijas, you will find apartments starting at €97,000, while detached homes start at €151,000. Las Lagunas de Mijas is a popular residential area where residents have every possible amenity within walking distance. Newly built homes here come equipped with fully equipped kitchens, air conditioning and parking spaces.
3. Marbella: Luxury and international appeal
Marbella remains the epicenter of luxury on the Costa del Sol. This cosmopolitan city attracts buyers from 137 different nationalities and is known for its exclusive real estate offerings along the Golden Mile. Sierra Blanca and La Zagaleta are among the most prestigious areas, with panoramic sea views and world-class amenities, including private golf courses. What sets Marbella apart is not only its luxury, but also its safety – for almost 25 years it has been known as one of the safest areas in Europe.
4. Torremolinos: Urban renewal and good accessibility
Torremolinos is currently undergoing urban renewal, making it an attractive option with excellent value for money. Located near Málaga airport, this coastal town offers modern new-build homes that combine comfort, functionality and elegance. The city is known for its golden beaches, pleasant promenade and vibrant nightlife.
5. Vélez-Málaga: Quiet charm with growth potential
Vélez-Málaga offers an attractive alternative for those seeking an authentic Spanish life. House prices here are generally more favorable than in other coastal cities. This historic city in the Axarquía region has a rich cultural heritage and offers beautiful views of mountains and sea. With the Sierras de Tejeda Natural Park nearby, it is ideal for nature lovers. Another asset is the relatively low cost of living compared to larger Spanish cities.
Hidden opportunities in housing types and locations
Outside the spotlight of the Costa del Sol lie hidden opportunities for real estate investors. Smart buyers are increasingly setting their sights on these undiscovered areas that offer exceptional value.
Opportunities outside the known hot spots
The 100 kilometers of coastline east from Málaga to Motril offers attractive investment opportunities with prices significantly lower. In Torre del Mar, for example, you can acquire property for around €100-1200/m² compared to €2500-2750/m² in Málaga itself. Rincón de la Victoria, the new “bedroom town” of Málaga, attracts more and more young couples who benefit from more favorable square meter prices. El Morche and Torrox Costa also offer an attractive combination of beautiful coastline and quieter living environments.
Houses with tourist permits
A strategic approach to your home buying on the costa del sol is to look for properties with an existing tourist license. Since August 2024, tourist rental rules have been tightened. If you buy an existing property with a rental license, you can take it over, even if the VvE later decides to prohibit rentals. Properties with this license must meet specific requirements, such as at least 14m² of space per person and air conditioning in living room and bedrooms.
Renovation projects with added value
Refurbishable villas, especially in premium locations such as the Golden Mile and Los Monteros, offer lucrative investment opportunities. The average cost for a complete renovation of a luxury villa is around €1,500/m². After a high-quality renovation, these properties can significantly increase in value and can also be converted into luxury vacation rentals with attractive rental income. The big advantage: you get access to exclusive neighborhoods at a lower price than an already renovated property.
Domestic villages with low entry prices
For those considering home buying costa del sol spain on a limited budget, inland villages offer exceptional opportunities. In areas such as Coín and Alhaurín el Grande, about 30 minutes from the coast, you will get more house for your money and an authentic Andalusian atmosphere. Traditional village houses in Sedella, Torrox and Canillas de Aceituno are available from €30,000-€75,000, ideal for those who love tranquility, nature or dream of a B&B project.
Future trends for new construction on the Costa del Sol (2025-2030)
The new construction market on the Costa del Sol is rapidly transforming toward 2030, driven by innovation and changing consumer needs. Sustainability and technology are central to this.
Growth in sustainable and energy-efficient homes
As of 2026, EU directives require all new construction to be near zero energy (NZEB). Project developers are increasingly implementing Passive House principles and pursuing BREEAM certification for environmentally friendly construction. In projects such as Vista Lago Residences, advanced insulation techniques and solar energy systems are becoming standard, reducing energy consumption by more than 35%.
Increase in smart homes and technology
Modern new construction homes on the Costa del Sol are equipped with:
- Smart home automation for climate control
- IoT-based security systems
- Voice-controlled devices that increase comfort
These technologies are no longer luxuries but necessities for buyers who value sustainability as well as convenience.
New construction projects in emerging areas
While Marbella remains the luxury epicenter, investment is shifting to emerging areas such as Fuengirola and Torremolinos, which are undergoing attractive urban renewal. In addition, Vélez-Málaga and La Axarquía offer competitive prices with rural charm close to the coast.
Impact of EU regulations on construction quality
The EU requires all new construction to be emission-free by 2030. From 2025, fossil heating systems will no longer be subsidized, and by 2040, all fossil fuel-based heating and cooling systems must be eliminated.
Changing buyer preferences
“Wellness real estate” is growing in popularity, with designs focused on physical, mental and emotional health. Buyers are increasingly looking for properties with tourist permits for rental potential while valuing a living experience in harmony with nature.
What smart buyers are already doing to profit
Forward-thinking buyers on the Costa del Sol know that timing and strategy are crucial in maximizing their real estate investment. With the right approach, you can profit significantly from this growing market.
Investing in pre-sale projects
Smart investors buy in the pre-sale phase when prices are still 10-30% lower than the final market value. This not only offers financial advantage, but also gives you the first choice of all available homes. Moreover, you can customize certain aspects of your home according to personal preferences. The phased payment schedule (10-20% reservation, 20-30% at signing, interim payments and final payment at completion) gives you time to plan your finances.
Collaborating with local experts
When you are considering buying a house on the costa del sol, expert guidance is indispensable. Professional buying counsellors know the region, are aware of new construction developments and will help you find the best performing projects. They also work with lawyers, tax experts and bankers to arrange all the specific formalities and inspections.
Using digital viewings
About 72% of potential buyers use digital means for property research. Virtual tours via Zoom, WhatsApp or Teams allow you to view properties extensively without traveling to Spain. These digital tools help efficiently select properties worthy of your physical visit.
Combining equity and financing
For non-residents, Spanish banks typically finance up to 70% of the purchase price. By combining equity with a mortgage, you can buy your house in Spain costa del sol without committing your entire capital.
Conclusion: Why now is the time to buy on the Costa del Sol
The new construction market on the Costa del Sol currently offers exceptional opportunities for investors and home buyers. While prices continue to rise – expected by 2.8% to 4% annually – this region remains more attractive than the overheated Dutch housing market.
It is clear that the future of new construction on the Costa del Sol is all about sustainability and technology. Energy-efficient homes are becoming not only the norm but a requirement, as all new construction must be near-zero energy from 2026. This trend offers you as a buyer not only lower energy costs, but also a higher resale value.
Areas such as Estepona and Mijas deserve special attention because of their growing popularity and still relatively attractive prices. Estepona, with its authentic Spanish charm and careful development plans, shows all the signs of being an area of strong value growth.
In addition, pre-sale purchases make a smart difference to your investment. By getting in early on new construction projects, you benefit from prices 10-30% lower than the final market value. Plus, it gives you the first choice of available homes.
Although digital viewings are becoming more common, local expertise remains indispensable. A trusted buying guide can help you navigate the complexities of the Spanish real estate market and identify the best new construction developments.
Finally, stricter EU regulations will lead to higher construction standards, meaning that new construction homes on the Costa del Sol will not only become more comfortable and energy efficient, but also more resilient to climate change. These factors combine to make new construction on the Costa del Sol a solid long-term investment for the next five years and beyond.
Key Takeaways
The Costa del Sol offers unique real estate opportunities in 2025 with price increases of 2.8-4% while Dutch house prices have already increased 40% since 2020.
- Pre-sale new construction projects offer 10-30% discount on market value and first choice of available homes
- Estepona and Mijas combine authentic charm with strong growth potential and relatively affordable prices
- Houses with tourist permits are scarce but offer rental opportunities after tightened regulations 2024
- From 2026, all new construction homes must be near-energy neutral, guaranteeing higher resale value
The combination of falling mortgage rates (2.1%), EU sustainability requirements and growing international demand makes now the ideal time to invest in new construction on the Costa del Sol.
FAQs
Q1. What are the best areas to invest in on the Costa del Sol in 2025? Estepona and Mijas offer an attractive combination of authenticity and growth potential. Estepona is evolving into a luxury destination with rising prices, while Mijas offers affordable options in a traditional Spanish setting.
Q2. How can I take advantage of the new construction market on the Costa del Sol? Investing in pre-sale projects can provide a 10-30% discount from the final market value. It also offers the opportunity to be the first to choose from available homes and sometimes even make adjustments according to personal preferences.
Q3. What are the expectations for property prices on the Costa del Sol? Property prices on the Costa del Sol are expected to rise moderately, with annual increases between 2.8% and 4%. Some areas, such as parts of Estepona, may even see price increases of more than 7%.
Q4. What trends are important for new home construction on the Costa del Sol? Sustainability and energy efficiency are becoming increasingly important. Starting in 2026, all new construction homes must be near-zero energy. The demand for smart homes with integrated technology is also increasing.
Q5. Is it wise to buy a house on the Costa del Sol now? Yes, it is a favorable time to buy. The combination of moderate price increases, falling mortgage rates and stricter EU regulations for new construction makes investing in Costa del Sol property an attractive long-term option.
