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Andalusia's property market is experiencing remarkable growth as we reach mid-2025, with prices surging across major cities and coastal areas. The region has emerged as one of Spain's strongest performing real estate markets, driven by international demand, limited supply, and favorable economic conditions.
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Property prices in Andalusia have increased dramatically in 2025, with the region recording Spain's highest year-on-year growth at 14-18.5%. Málaga province leads with average prices of €4,023/m², while the Costa del Sol continues attracting premium buyers.
International demand, tourism recovery, and housing supply shortages are driving sustained price growth, with forecasts predicting continued increases through 2026-2027.
| Key Metric | Current Value (2025) | Year-on-Year Change |
|---|---|---|
| Average Price Andalusia | €2,702/m² | +14.0% to +18.5% |
| Málaga Province | €4,023/m² | +13.0% |
| Apartments | €3,040.9/m² | +5.19% |
| Houses | €1,813.89/m² | +3.37% |
| Foreign Buyer Premium | €2,515/m² | +41% vs pre-pandemic |
| Costa del Sol Average | €2,289/m² | +9.3% |
| Marbella Luxury | €5,050/m² | Record highs |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
How much have property prices increased in Andalusia during 2025?
Property prices in Andalusia have experienced exceptional growth throughout 2025, with the region recording the highest year-on-year increase in Spain.
According to the latest market data, Andalusia posted a remarkable 14.0% year-on-year price growth in Q1 2025, with some sources reporting even higher increases of 18.5% when comparing May 2025 to May 2024. This performance significantly outpaces the national Spanish average and positions Andalusia as the country's strongest regional property market.
The average asking price across Andalusia reached €2,702 per square meter in April 2025, representing the highest level recorded in the past two years. This marks a substantial 21.93% increase from €2,216 per square meter in May 2024, demonstrating the accelerating pace of price appreciation throughout the region.
Málaga province leads this growth trajectory, with average prices reaching €4,023 per square meter and year-on-year increases of 13.0%. The province's coastal areas, particularly around Marbella and the Costa del Sol, continue to command premium prices due to their international appeal and limited available land for development.
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Which areas in Andalusia are seeing the highest property price increases in 2025?
Málaga province and the Costa del Sol region are experiencing the most dramatic property price increases across Andalusia in 2025.
Málaga city itself has seen property prices rise by 10.7% year-on-year, reaching €2,336 per square meter, while the broader provincial average of €4,023 per square meter represents the highest in the region. Within the luxury segment, Marbella continues to lead with average prices of €5,050 per square meter, followed closely by Benahavís at €4,746 per square meter.
The Costa del Sol corridor between Marbella and Manilva commands the highest holiday home prices at €4,000 per square meter, with the Torremolinos to Mijas stretch averaging €3,600 per square meter. Areas like Estepona have seen particularly strong growth, with asking prices increasing by 19.3% in 2023 and continuing to rise in 2025.
Coastal municipalities account for 83% of all property sales in Málaga province and 64% of new building permits, highlighting the concentration of market activity in these high-growth areas. International buyers dominate these coastal markets, paying an average of €2,515 per square meter in Andalusia—41% more than pre-pandemic levels.
In contrast, more affordable growth is occurring in inland areas, with Jaén province maintaining the lowest average price at €887 per square meter, though even these areas are experiencing upward pressure from the broader regional trend.
What are the current average property prices across different types in Andalusia?
Property prices in Andalusia vary significantly by type and location, with apartments commanding higher prices than houses due to urban demand and coastal appeal.
| Property Type | Average Price (€/m²) | Year-on-Year Change | Key Markets |
|---|---|---|---|
| Apartments | €3,040.9 | +5.19% | Coastal cities, urban centers |
| Houses | €1,813.89 | +3.37% | Suburban and rural areas |
| Holiday Homes (Málaga) | €3,700 | Strong growth | Costa del Sol, coastal areas |
| Luxury Properties (Marbella) | €5,050+ | Record levels | Golden Mile, Puerto Banús |
| New Build Properties | Premium pricing | +10.7% nationally | Development areas |
| Rural Properties | €887 (Jaén) | Moderate growth | Inland provinces |
| Second Homes | €4,000 (premium areas) | High growth | Marbella-Manilva corridor |
How do current property prices compare to five years ago in Andalusia?
Property prices in Andalusia have experienced substantial growth over the past five years, with some segments showing increases of up to 70% since 2020.
The House Price Index for new builds in Andalusia reached 170.57 in 2023 (based on 2015=100), indicating a 70% increase in new construction prices since 2015. Existing homes showed a more moderate but still significant increase, with the index reaching 140.04, representing a 40% gain over the eight-year period.
Looking at specific price per square meter data, the average cost in Andalusia was approximately €1,589 per square meter for all property types in 2021. By Q2 2024, apartments averaged €2,644.8 per square meter while houses reached €1,667.76 per square meter, demonstrating the diverging performance between property types.
A practical example illustrates this growth: an 80-square-meter apartment in Andalusia that cost approximately €103,680 in 2021 would cost around €127,000 in 2024, representing a 22% increase over just three years. Foreign buyers now pay 41% more per square meter compared to pre-pandemic levels, reflecting both price appreciation and the premium international demand commands.
The most dramatic changes have occurred in luxury coastal markets, where properties in Marbella and surrounding areas have seen prices double or even triple in some premium locations since 2019.
What are the property price forecasts for Andalusia in 2026 and beyond?
Property price forecasts for Andalusia indicate continued strong growth through 2026 and beyond, though at a gradually moderating pace.
For 2025-2026, analysts project property prices in Andalusia to increase by 4.7% nationally, with regional forecasts suggesting similar or higher rates in key markets like Málaga. The Center for City Development Policy specifically forecasts Andalusia will see +16.8% total growth for the 2024-2027 period, placing it near the Spanish average.
Málaga city is projected to experience particularly strong growth of +36.2% through 2027, making it one of Spain's leading markets. Seville, while more moderate, is still forecast to grow by +14.9% over the same period. These projections reflect the continued appeal of Andalusia's major urban and coastal centers.
Long-term forecasts through 2030-2045 remain optimistic, driven by sustained population growth, international migration, tourism recovery, and limited new construction relative to demand. However, potential regulatory changes regarding energy efficiency requirements, short-term rental restrictions, and possible tax reforms for foreign buyers could moderate growth rates.
Experts predict that price increases will progressively slow, reaching around 3% annually by 2026 and aligning with inflation at approximately 2% by 2027, suggesting a normalization of the market while maintaining positive momentum.
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How is international demand affecting property prices in Andalusia?
International demand is a primary driver of property price increases in Andalusia, with foreign buyers significantly influencing market dynamics and pricing structures.
Foreign buyers account for approximately 20% of Spain's total property transactions, with Andalusia representing a substantial portion of this international investment. In 2024, foreign buyers in Andalusia paid an average of €2,515 per square meter, which represents an 11.7% increase compared to 2023 and a remarkable 41% premium compared to pre-pandemic levels.
The buyer demographics show strong representation from Northern Europeans, particularly British, German, Belgian, and Dutch purchasers, along with growing interest from American and Eastern European buyers. British buyers, despite Brexit concerns, have increased their investment in Marbella's real estate sector by an average of 20% over the past two years.
International buyers tend to focus on premium coastal properties, particularly in Málaga province where holiday homes average €3,700 per square meter. The highest concentration of foreign investment occurs between Marbella and Manilva, where prices reach €4,000 per square meter for holiday properties.
The influx of digital nomads and remote workers has added a new dimension to international demand, particularly in urban areas like Málaga city and coastal regions. This trend is increasing competition for both purchase and rental properties, contributing to overall price appreciation across the market.
What impact are mortgage rates and financing having on property prices in 2025?
Mortgage rates and financing conditions are playing a supportive role in Andalusia's property market growth, with improving lending conditions contributing to increased demand and price appreciation.
The Euribor, which serves as the benchmark for Spanish mortgages, has declined from 3% in September 2024 to an expected 2.65% by end-2024 and is projected to reach 2.1-2.15% in 2025. This downward trend in interest rates has made mortgages more affordable and accessible to buyers, supporting increased purchasing activity.
Lower mortgage rates have driven an increase in mortgage approvals throughout Spain, which experts expect will further push house prices upward in 2025. However, it's worth noting that 45% of Costa del Sol buyers purchase properties without loans, indicating that the market is somewhat insulated from interest rate fluctuations due to the high proportion of cash buyers.
Mixed-rate mortgages (combining fixed and variable components) are becoming increasingly popular among borrowers, providing stability while allowing some benefit from potential rate decreases. The average mortgage amount in Málaga is expected to rise alongside property prices, with new housing sales predicted to increase by 18.5% in 2025.
Despite the positive lending environment, mortgage signings fell 17.8% in 2023 while overall home purchases only dropped 9.7%, highlighting the market's reliance on cash buyers, particularly among international purchasers who often prefer direct purchases to avoid financing complexities.
Which property types are experiencing the biggest price surges in Andalusia?
New build properties and luxury coastal developments are experiencing the most significant price surges in Andalusia's current market cycle.
New construction has consistently outperformed existing properties, with new builds showing year-on-year appreciation of +10.7% compared to +7.9% for resale properties nationally. In Andalusia specifically, new developments are commanding premium prices due to modern amenities, energy efficiency features, and prime locations.
Luxury villas and high-end apartments in coastal areas are seeing the most dramatic price increases, particularly properties with sea views, private pools, and exclusive locations. Properties in Marbella's Golden Mile, Puerto Banús, and Nueva Andalucía continue to reach record price levels, with some ultra-luxury properties exceeding €10,000 per square meter.
Holiday homes and second properties are experiencing exceptional demand, particularly in the Costa del Sol corridor where prices between Marbella and Manilva average €4,000 per square meter. The short-term rental market has also driven up prices for properties suitable for Airbnb and vacation rentals, especially in tourist-heavy areas.
Energy-efficient properties are increasingly commanding premiums, with the number of properties with energy-efficient ratings in Andalusia rising by 15% in 2025. This trend is driven by upcoming EU regulations requiring minimum 'E' energy ratings by 2030, making efficient properties more valuable.
Apartments in urban centers, particularly in Málaga city and Seville, are outperforming houses in terms of price appreciation, driven by young professionals, international buyers, and the growing digital nomad population seeking central locations with amenities.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
How does tourism recovery affect property prices in Andalusia?
Tourism recovery has been a significant catalyst for property price increases in Andalusia, driving both direct investment and indirect market pressures.
Andalusia's tourism sector posted strong GDP growth of 3.1% in 2024 with expectations of 3.0% growth in 2025. The Costa del Sol and Málaga province alone welcomed over 12 million foreign tourists in the first 10 months of 2024, creating sustained demand for both short-term and long-term accommodation.
The tourism boom has increased demand for second homes and investment properties, particularly in coastal areas like Marbella, Estepona, and Nerja. Property owners are capitalizing on short-term rental opportunities, with Málaga city seeing a 30% year-on-year increase in Airbnb listings from 2023 to 2024, which has reduced long-term rental supply and pushed up property prices.
Enhanced connectivity is further boosting the market, with Málaga airport recording direct flights from New York (increasing to daily during peak season) and year-round service from Doha. This improved access is making the region more attractive to international buyers and investors, contributing to price pressures.
The luxury tourism segment is particularly impactful, with high-net-worth individuals seeking year-round residences in Málaga and surrounding areas. Winter tourism has transformed the Costa del Sol into a twelve-month destination, sustaining demand and preventing the seasonal price fluctuations traditionally seen in Mediterranean resort markets.
However, tourism success has also led to local government concerns about housing affordability, resulting in some restrictions on new short-term rental licenses in certain areas, which ironically may further constrain supply and support price growth.
What role do energy efficiency requirements play in property values?
Energy efficiency requirements are becoming increasingly important in determining property values in Andalusia, with new EU regulations creating a significant market divide between efficient and inefficient properties.
From 2030, all residential properties in Spain must achieve at least an 'E' energy efficiency rating to be sold or rented, rising to 'D' rating by 2033. This requirement affects over 80% of Spanish buildings currently rated E, F, or G, creating both challenges and opportunities in the Andalusian property market.
Properties with energy-efficient ratings in Andalusia are increasing by 15% in 2025, driven by proactive government subsidies and the Plan Ecovivienda initiative. The Junta de Andalucía has been offering financial incentives for homeowners to install energy-efficient systems like solar panels, making upgrades more accessible and affordable.
Energy-efficient properties are commanding premium prices as buyers anticipate lower operating costs and regulatory compliance. New developments incorporating sustainable features such as solar panels, quality insulation, and water recycling systems are particularly valued by high-end buyers seeking modern, environmentally responsible homes.
Conversely, older buildings with poor energy ratings may face price pressure unless renovated, as buyers factor in the cost of required upgrades. This regulatory change is creating market segmentation where efficient properties appreciate faster while inefficient ones may see slower growth or value stagnation until improved.
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How do property prices in Andalusia compare to other European regions?
Andalusia's property prices remain competitive compared to other popular European coastal and urban markets, while offering superior value in terms of climate, lifestyle, and investment potential.
| Region | Average Price (€/m²) | Growth Trend | Key Factors |
|---|---|---|---|
| Andalusia (Spain) | €2,509-€2,702 | Strong growth (+14-18%) | Tourism, foreign demand |
| Algarve (Portugal) | €2,500-€3,000 | Similar growth | British buyers, golden visa |
| Côte d'Azur (France) | €4,000-€8,000+ | Stable, premium market | Luxury focus, limited supply |
| Tuscany (Italy) | €2,000-€4,000 | Moderate growth | Heritage appeal, rural focus |
| Sicily (Italy) | €1,500-€2,500 | Slower growth | Lower international interest |
| Balearic Islands (Spain) | €2,934 | Strong growth (+10.8%) | Island premium, limited land |
| Valencia (Spain) | €2,200-€2,800 | Strong growth | Urban development, accessibility |
What are the main risks and opportunities for property investment in Andalusia?
Property investment in Andalusia presents significant opportunities alongside some important risks that potential buyers should carefully consider.
Key Opportunities:
The market fundamentals remain extremely strong, with sustained international demand, limited housing supply, and continued tourism growth supporting long-term price appreciation. Andalusia offers better value compared to other premium European destinations while maintaining growth potential, particularly in emerging areas like Estepona and inland cities.
The rental market provides excellent opportunities, with both long-term and short-term rental yields remaining attractive. Foreign buyers can still access mortgages at favorable rates, and the region's year-round climate ensures consistent tourism demand. Energy-efficient properties present particular opportunities as regulatory requirements drive market differentiation.
Primary Risks:
Regulatory changes pose the most significant risks, including potential restrictions on short-term rentals in tourist areas and proposed tax increases for non-EU buyers. The Spanish government has proposed a 100% property tax on non-EU foreign buyers, though this faces strong opposition and may not pass in its current form.
Climate change risks, particularly coastal erosion and increased insurance costs for beachfront properties, could affect long-term values in vulnerable areas. Market speculation concerns exist in some premium segments, and potential oversupply in certain new development areas could moderate price growth.
Economic risks include potential recession impacts on tourism and international buyer demand, while the concentration of the market in specific areas creates vulnerability to local disruptions. Energy efficiency requirements may require significant investment in older properties to maintain market value.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property prices in Andalusia are definitively going up, and going up significantly. The region is experiencing one of Europe's strongest property market performances, with year-on-year growth rates of 14-18.5% that show no signs of immediate moderation.
The combination of international demand, tourism recovery, limited housing supply, and favorable financing conditions creates a perfect storm for continued price appreciation through 2026 and beyond. While some moderation is expected in the medium term, the fundamental drivers remain strongly positive.
Sources
- Investropa - Andalusia Real Estate Market Statistics
- Cottage Properties - Spanish Real Estate Market 2025
- Dream Properties - Spain Market Analysis Q4 2024
- Spot Blue - Spain Real Estate Market 2025 Guide
- Investropa - Andalusia Real Estate Forecasts
- Global Property Guide - Spain Property Market Analysis
- The Property Finders - Andalucía Market Report 2025
- Jason Callow - Costa del Sol Property Prices 2025