2025 Property Update: What’s Next for the Costa del Sol?

2025 Property Update: What’s Next for the Costa del Sol?

As we step into February 2025, the Costa del Sol property market continues to surprise and inspire. If you’ve been waiting for the right time to sell your property on the Costa del Sol, the latest trends and news suggest that now might be the perfect moment.

Rising Prices and Market Momentum

Recent data from Idealista has caught our attention—a staggering 20% increase in property prices was recorded in January 2025 in Málaga alone. This phenomenal growth highlights the strong demand in the region, particularly in sought-after areas like Mijas Costa. Despite the challenges of high interest rates and inflation, buyers remain eager, and properties continue to fetch impressive prices.

For sellers, this is good news. With demand outstripping supply, if you’re looking to sell your property on the Costa del Sol, you’re in a seller’s market. The upward momentum in prices means that now is an ideal time to capitalise on your investment.

Supply Shortages and Long-Term Growth

One key factor driving this robust market is the chronic shortage of new housing. Studies indicate that Spain is currently missing roughly 40,000 new homes each year. This persistent supply deficit is pushing prices higher, especially in prime coastal areas. While this means that buyers need to act fast, it also ensures that those who choose to sell their property on the Costa del Sol can expect strong returns.

Policy Changes and Taxation – What to Watch

In addition to these market dynamics, there’s been some topical political news that could impact future transactions. Recently, Prime Minister Pedro Sanchez floated a suggestion that has caught many by surprise—a potential 100% tax on certain luxury property transfers, particularly targeting non-EU buyers. While details remain under discussion, this measure is aimed at addressing housing affordability and curbing speculative investments. If implemented, it could have significant implications for the luxury market, potentially affecting prices and demand on The Costa del Sol.

Conversely, there’s also talk of attractive tax incentives, including a 100% tax holiday for long-term, affordable rentals. These measures are part of a broader effort by the Spanish government to balance the market and ensure sustainable growth. As a seller, staying informed about these developments is crucial. They could shape not only the way buyers make decisions but also how you position your property when you choose to sell your property on the Costa del Sol.

What Does This Mean for You?

Whether you’re a seasoned investor or a first-time seller, the current market conditions offer exciting opportunities. If you’ve been thinking about selling your property on the Costa del Sol, the strong demand, combined with the upward trend in prices and favourable economic indicators, make this a prime time to do so.

At Star Properties, we’ve been working in this vibrant market for over 30 years, and we know the local ins and outs better than anyone. We’re here to help you navigate these trends with a personalised approach that turns market challenges into opportunities. Our expert team is ready to provide you with the latest insights, professional advice, and a comprehensive strategy tailored to your property’s unique strengths.

Your Next Step

If you’re considering selling your property on the Costa del Sol in 2025, now is the time to act. With rising prices, a tight housing supply, and strategic policy changes on the horizon, the market is set for another strong year. Let us help you make the most of it. Reach out today for a free valuation and to discuss your options.

We hope you enjoyed our 2025 Property Update so far. Stay informed, stay ahead, and let’s make 2025 a fantastic year for property on the Costa del Sol!

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