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What will happen in Andalusia’s real estate market? Will prices go up or down? Is Seville still a hotspot for foreign investors? How is Spain’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Andalusia, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

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1) Property prices in Malaga will rise significantly as it becomes a digital nomad hub
Malaga is quickly becoming a hotspot for digital nomads, and this is causing property prices to soar.
In 2023, the demand for coworking spaces in Malaga hit a record high, with an average occupation rate of 92%. This shows that more remote workers are choosing Malaga as their base, naturally boosting the demand for housing.
The city has expanded its flexible workspaces by 42% in square meters from 2020 to 2023. This growth caters to freelancers and large companies alike, drawing more people to the area and increasing the need for residential properties.
Malaga's real estate market is on the rise, with property prices climbing from €2,118/m² in 2020 to €3,069/m² in 2024. This surge is fueled by the city's thriving tourism sector and its charm as a cultural and coastal destination.
The limited housing stock and ongoing renovations to heritage buildings are also pushing property values higher. As Malaga becomes more attractive, the competition for homes intensifies, driving prices up.
With its sunny climate and vibrant lifestyle, Malaga is not just a place to work but a place to live, making it a prime choice for those seeking a balanced life. The city's transformation into a digital nomad hub is reshaping its real estate landscape.
Sources: Coworking Europe, Spain Easy, Urbemar
2) Fewer buyers will seek beachfront properties in Andalusia due to climate change concerns
Climate change is reshaping the real estate market in coastal areas like Andalusia.
In recent years, rising sea levels and coastal erosion have become major concerns for property buyers. For instance, the Arraijanal-San Julián coast has seen significant erosion, with some parts losing up to 45 meters between 2016 and 2022. This makes beachfront properties more vulnerable and less appealing.
Adding to the worry, coastal flooding events have become more frequent and severe. By 2022, storms were causing waves three to four times higher than usual, leading to serious shoreline regression. This raises doubts about the long-term viability of investing in these areas.
Globally, scientists warn that half of the world's sandy beaches could vanish this century. In Andalusia, this threat is already evident, prompting insurance companies to consider raising premiums for beachfront properties, making them less attractive investments.
Market trends show a shift in buyer preferences, with more people now seeking inland properties perceived as safer from climate impacts. Media coverage highlighting the risks of beachfront properties is influencing public perception and buyer behavior.
Local governments might introduce development restrictions in high-risk coastal zones, further affecting demand for beachfront properties. Buyers are increasingly looking for secure investments away from vulnerable areas.
Sources: Euronews, The Olive Press, Pure Living Properties, The Property Finders

We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Rental yields in Andalusia's coastal towns will drop as more properties become short-term rentals
In Andalusia's coastal towns, short-term rentals are booming on platforms like Airbnb and Booking.com.
Tourists flock to hotspots like Marbella and Nerja, drawn by sun, golf, and culture, which keeps the short-term rental market buzzing. The Costa del Sol and Malaga province saw a record 14.4 million visitors in 2024, pushing the demand for these rentals even higher.
Local reports highlight the downside: rising housing costs and a squeeze on long-term rentals. The Costa del Sol tourist board president acknowledges tourism's importance but warns of its impact on housing affordability.
Property owners are cashing in on short-term rentals, especially during peak seasons, because they offer better returns than long-term leases. This shift is noticeable as more properties are pulled from the long-term market.
Real estate agents confirm this trend, observing that many properties are now short-term rentals, which further reduces long-term rental options. This change is reshaping the rental landscape in these popular areas.
Sources: Sur in English, Asset Folio, The Olive Press
4) Rental demand in Seville will grow as more international students arrive
The demand for rental properties in Seville is on the rise as the city becomes a hotspot for international students.
Universities like the University of Seville and EUSA University Centre are seeing a boom in student numbers, with EUSA hosting around 400 international students recently. This influx is largely due to the growing popularity of international student exchange programs, which are making Seville a top choice for students worldwide.
Institutions such as the Spanish Institute are offering more programs, allowing students to easily enroll in local universities. The increase in English-taught courses is a game-changer, attracting non-Spanish speakers who want to study in this vibrant city.
Spain hit a milestone with 241,777 international students in the 2022/2023 academic year, showing a clear upward trend. These students often prefer renting, as they need temporary housing during their studies. This has led to a noticeable uptick in Seville's rental market.
Rental prices in Seville have climbed by 5.5% over the past year and by 16% over the last five years, especially in student-friendly neighborhoods. This trend is a direct result of the increasing number of international students seeking accommodation.
As Seville continues to attract more students, the rental market is expected to grow even further, making it a promising area for property investment. Neighborhoods popular with students are particularly seeing this surge, offering great opportunities for those looking to invest in rental properties.
Sources: World of Students, Spanish Institute, Savills, Studies In
5) Property values in Seville's historic neighborhoods will rise significantly as cultural tourism grows
Seville's historic neighborhoods are poised for a significant boost in property values thanks to the rise in cultural tourism.
In 2023, Seville welcomed 2 million tourists in just eight months, a 14% jump from the previous year. This surge shows how much people are drawn to Seville's rich cultural scene. The city's charm, with its flamenco shows, stunning architecture, and vibrant festivals, is pulling in more visitors than ever.
Andalusia, the region where Seville is located, also saw a record-breaking 33.9 million tourists in 2023, up by 9.9% from the year before. This regional boom in tourism naturally spills over into Seville, making its historic neighborhoods even more appealing. The Andalusian government is actively promoting and preserving cultural heritage, which adds to the allure of these areas.
There's a growing demand for short-term rentals in Seville's historic districts. In Barrio de Santa Cruz, over 60% of properties cater to tourists, and other neighborhoods in the historic center are following suit. This trend highlights the area's popularity among visitors looking for an authentic experience.
Investors are taking note, as the demand for tourist accommodations is a clear sign of the area's attractiveness. The combination of cultural richness and increasing visitor numbers makes Seville's historic neighborhoods a hot spot for property investment.
With the ongoing efforts to preserve and promote cultural sites, Seville's historic areas are not just maintaining their charm but are becoming even more desirable. This makes them a prime target for those looking to invest in property.
Sources: Spain Easy, Reporters.es, WPSU Radio
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6) Interest in rural properties in Andalusia will grow due to government efforts to boost rural development
Government initiatives are set to boost interest in rural Andalusian properties.
With companies like Adamo expanding fiber optic networks in 2023, digital connectivity in rural Andalusia has improved dramatically. This makes it easier for people to work remotely and manage daily tasks online, drawing more folks to consider rural living.
The Junta de Andalucía rolled out a 130-million-euro aid package in 2024 aimed at young farmers, especially women and those in livestock. This move not only keeps younger generations in rural areas but also strengthens the local economy, making countryside properties more attractive.
Andalusia's dedication to the EU's Rural Vision and the European Rural Pact in 2024 shows a strong governmental push for rural living. By crafting a regional rural vision, the government is highlighting the perks of rural life, sparking more interest in properties away from city centers.
These efforts are part of a broader strategy to revitalize rural areas, making them more appealing to potential buyers. Improved infrastructure and economic incentives are key elements in this transformation.
As more people discover the benefits of rural living, the demand for properties outside major cities is expected to rise. This trend is likely to continue as government initiatives unfold.
Sources: Rural Pact, Ardian, Sur in English
7) More foreign buyers will seek inland properties in Andalusia due to their charm and affordability
Foreign buyers are increasingly eyeing Andalusia's inland properties for their affordability and charm.
With coastal areas like Costa del Sol seeing property prices soar to around 2,800 euros per square meter, many are turning inland for better deals. This shift is not just about cost; it's about finding a slice of authentic Spanish life without breaking the bank.
In 2023, foreign investment in Spanish real estate jumped by 13.2%, but the buzz is all about the inland areas. These regions offer a unique blend of lifestyle perks and solid investment opportunities, making them a hot topic in media circles.
Andalusia's inland regions are not just about picturesque landscapes; they are steeped in cultural richness that captivates foreign buyers. The charm of these areas is a major draw, offering a taste of traditional Spain that coastal areas can't match.
Government efforts to boost rural development, like tax breaks and subsidies, are sweetening the deal for potential buyers. These initiatives, coupled with improved infrastructure, make inland properties even more appealing.
For those seeking an authentic Spanish experience, the enhanced accessibility of these regions is a game-changer. It's not just about buying a property; it's about embracing a lifestyle that offers both stability and charm.
Sources: Statista, Taylor Wimpey España, SCIRP
8) Chinese investors will increasingly invest in Andalusia’s real estate as they diversify globally
Chinese investors are increasingly eyeing Andalusia's real estate market as part of their global diversification strategy.
In 2024, China's outbound investment jumped by 12.5%, showing a strong appetite for overseas opportunities. This surge is not just about numbers; it's about a growing curiosity and confidence in exploring new markets. Andalusia, with its rich culture and sunny climate, is becoming a hotspot for these investors.
Chinese tourists are flocking to Andalusia, with visits skyrocketing by 133.1% in 2024. This isn't just about sightseeing; it's about getting to know the region better. As they explore the local charm, many are considering real estate investments, seeing the potential for both personal and financial growth.
The Chinese government is on board, actively encouraging its citizens to invest overseas. This aligns with their broader economic strategy, which aims to diversify and strengthen their global presence. Andalusia, with its stable and growing real estate market, fits perfectly into this plan.
Local tourism officials in Andalusia are not sitting idle. They're strategically promoting the region to the Asian market, highlighting its appeal as a prime investment destination. The region's real estate market is characterized by strong demand and rising prices, making it a lucrative option for foreign investors.
With all these factors in play, it's no wonder that Andalusia is becoming a key focus for Chinese investors looking to expand their portfolios. The combination of cultural allure, economic stability, and strategic promotion is creating a perfect storm of opportunity.
Sources: China Briefing, Sur in English

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.
9) British buyers will keep leading the foreign real estate market in Andalusia after Brexit
British buyers have long been the top foreign property purchasers in Andalusia, and they continue to hold this position.
In the first half of 2024, 3,782 Spanish home sales involved British buyers, showing their ongoing interest. The allure of Andalusia for Brits is partly due to its sunny climate and vibrant lifestyle, especially in hotspots like Malaga.
British citizens are drawn to Andalusia for holiday homes and retirement properties, with Malaga being a favorite due to its climate and amenities. While recent data doesn't specify, historically favorable exchange rates have made Andalusia even more attractive to British buyers.
The UK and Spain's strong cultural ties play a big role in this trend. Established British communities in Andalusia offer support, making it easier for newcomers to settle in and enjoy the local lifestyle.
Andalusia's relaxed lifestyle and stunning scenery are magnets for British retirees. Real estate agencies report that British buyers lead the market in areas like Marbella, with consistent inquiries and purchases.
Legal and financial services in Andalusia are tailored for British buyers, easing the post-Brexit transition. Surveys show British interest in Spanish real estate remains high, and media reports confirm ongoing British investment in the region.
Sources: Spanish Property Insight, InterNations, Telework Andalucia
10) Demand for modern apartments in Andalusia will grow as more young professionals move to urban centers
Andalusia's urban centers are becoming a hotspot for young professionals due to booming job opportunities, especially in tech.
Take Malaga, for instance, where the coworking scene is thriving with a 92% occupancy rate, making it a key player in Spain's coworking market. This vibrant job market is a magnet for young talent.
Infrastructure and public transport investments have made city life more convenient, part of a strategy to attract skilled professionals. The rise of remote work also means young professionals can move to Andalusia without leaving their jobs, thanks to reliable high-speed internet and coworking spaces.
Modern residential projects are popping up to meet the growing demand for urban living. These developments are tailored for young professionals, offering amenities like coworking spaces and modern facilities.
Surveys indicate that young professionals are drawn to urban living, which aligns with the increasing demand for modern apartments in Andalusian cities.
Expect more young professionals to flock to Andalusia's urban centers, boosting demand for modern apartments as they seek vibrant city life.
Sources: Coworking Europe, Panorama Marbella, Innovators Guide
11) Property prices in rural Andalusia will drop as younger people move to cities
The rural areas of Andalusia are seeing a drop in property prices as young people head to the cities.
In many rural parts of Andalusia, the population is shrinking because younger generations are moving to urban centers for better opportunities. This isn't just happening here; it's a common trend in rural communities across the region.
The main reason for this shift is the lack of job opportunities in rural areas compared to cities. Urban centers offer more dynamic job markets, attracting young people eager for employment and career advancement.
Surveys reveal that young people prefer city life due to better access to services, education, and job prospects. This urban preference is reshaping the demographic landscape of Andalusia.
Real estate reports show a decline in demand for rural properties. For example, home sales to foreign buyers have dropped more in Andalusia than in other regions, signaling a cooling interest in rural properties.
Historical data indicates that property prices in rural areas are lower and less stable than in urban areas. This aligns with the migration patterns we're seeing, as people move towards cities.
Sources: The Olive Press, BBVA Research, Spanish Property Insight, DM Properties, CaixaBank Research
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12) Almeria’s property market will stay steady as it becomes a popular spot for retirees
Almería is becoming a hotspot for retirees, and its real estate market is expected to stay stable.
With 8.7 million foreign residents in Spain, many retirees are choosing sunny spots like Almería. This trend is likely to keep growing, making Almería a top choice for those looking to enjoy their golden years.
Almería's 300 days of sunshine each year are a big draw for retirees, especially those with health conditions that benefit from a warm climate. The city offers plenty of outdoor activities, from beach trips to exploring natural parks, making it perfect for an active retirement lifestyle.
In neighborhoods like Nueva Almería-Cortijo Grande, property sales are on the rise, with prices at €2,075 per square meter. This shows a strong interest from retirees looking to settle down in this vibrant area.
As of October 2024, the average price for residential properties in Almería hit €1,454 per square meter, marking a 4.60% increase since December 2023. This suggests a stable market with room for growth, appealing to potential buyers.
Almería also caters to retirees with a variety of services, including health centers with specialized staff and cultural activities tailored for older adults. This makes it not just a beautiful place to live, but also a supportive community for retirees.
Sources: Indomio, Immigrant Invest, Idealista
13) Demand for eco-friendly homes in Andalusia will rise as people become more environmentally conscious
The demand for eco-friendly homes in Andalusia is on the rise as people become more environmentally conscious.
In recent years, there's been a noticeable shift in the region's real estate market towards sustainability. For instance, ACCIONA's projects in Costa Ballena are all about creating sustainable and efficient housing, which shows how much people are leaning towards eco-friendly living.
Moreover, the market for sustainable building materials in Spain, including Andalusia, is growing. This trend is fueled by a cultural push for environmental responsibility and green living. As more folks prioritize sustainability, homes built with eco-friendly materials are becoming more popular.
Government initiatives are also a big part of this change. The PICSA project in Andalucía, with its high subsidy rates, has enabled over 36,000 sustainable interventions in less than a year. These efforts are part of a larger plan to cut CO2 emissions and promote sustainable building practices, making eco-friendly homes more attractive to buyers.
With these initiatives, eco-friendly homes are becoming more accessible and appealing. The focus is on reducing environmental impact while providing comfortable living spaces.
As environmental awareness grows, the demand for eco-friendly homes in Andalusia will continue to increase, driven by both cultural shifts and government support.
Sources: Euronews, Statista, ACCIONA
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.