Authored by the expert who managed and guided the team behind the Spain Property Pack

Everything you need to know before buying real estate is included in our Spain Property Pack
What is happening in Andalusia’s real estate market? Are prices going up or down? Is Seville still a hotspot for foreign investors? How is Spain’s government impacting real estate policies and taxes in 2025?
These are the questions everyone is asking us every day—professionals, buyers, and sellers alike, from Málaga to Granada and beyond. Perhaps you’re wondering the same thing.
We know this because we stay deeply connected with local professionals and people like you, diving into the Andalusian real estate market every single day. That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market trends and dynamics.
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.

1) Malaga's rental yields will increase as tourism recovers after the pandemic
In 2024, Malaga welcomed 14.4 million tourists, a noticeable increase from the previous year.
This influx of visitors led to a 10.9% rise in tourist spending, surpassing 21.2 billion euros. With more tourists flocking to the city, there's a growing demand for short-term rentals, which is great news for property investors eyeing higher rental yields.
Short-term rentals in Malaga are thriving, with properties being booked for 310 nights annually on average and enjoying an impressive 85% occupancy rate. This trend shows that vacation rentals are becoming a popular choice over traditional hotels, pushing rental yields even higher.
The sharing economy is booming here, with 7,725 active Airbnb listings as of September 2024. Hosts are earning around €28K a year, which underscores the strong market for short-term rentals. This shift towards platforms like Airbnb is a clear sign of the potential for increased rental yields.
With tourists spending more and staying longer, the average daily rate for vacation rentals has hit €98. This figure highlights the lucrative nature of the rental market in Malaga, making it an attractive option for property buyers.
Sources: Sur in English, Airbtics, CaixaBank Research
2) Rental yields in Seville will rise as more international students are drawn to the city
Seville is becoming a hotspot for international students, and this is great news for property investors.
With more students flocking to the city, the demand for student accommodation is skyrocketing. This trend has been steady, and it's not slowing down anytime soon. Many of these students are choosing Seville, drawn by its vibrant culture and reputable universities.
There's a big gap in the market, with over 350,000 student beds needed but not available. This shortage is driving up the demand for existing rental properties, which in turn is pushing rental prices higher. If you've noticed rents climbing in Seville, this is why.
Most international students prefer to rent rather than buy, given their temporary stay. This preference, coupled with the housing shortage, means rental properties are in fierce demand. For property owners, this translates to higher yields.
Seville's rental market is competitive, and property owners are seeing better returns as a result. The city's appeal to students is a key factor in this dynamic.
Sources: CoStar, Savills, Studying in Spain

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) International students will boost demand for affordable housing in university cities
The surge of international students in Andalusia's university cities is reshaping the housing market.
In recent years, especially during the 2021/22 academic year, Spanish universities welcomed a record number of international students. Many of these students hail from Latin American countries like Colombia and Ecuador, adding to the vibrant cultural mix in cities such as Seville, Granada, and Málaga.
With student numbers now exceeding pre-pandemic levels, the demand for student accommodation has skyrocketed. These Andalusian cities are feeling the pinch, as there's a structural shortage of over 350,000 student beds across Spain. This shortage is particularly pronounced in areas popular with international students.
The housing crunch has naturally led to rising rental prices. Over the past decade, student housing rents have jumped nearly 30% nationwide. In top-tier university cities, rents saw a 9% increase just in the 2022-2023 school year, underscoring the intense pressure on the housing market.
For those considering buying property in these areas, it's crucial to understand that the influx of international students is a key driver of housing demand. This trend is reshaping the real estate landscape, making it a dynamic market to watch.
Investors and potential homeowners should note that the demand for affordable housing is not just a temporary spike. With more students expected in the coming years, the need for suitable accommodation will likely continue to grow.
Sources: ICEF Monitor, CoStar, Brookfield Oaktree, Prodirekt Group
4) Property prices on the Costa del Sol will steadily rise due to ongoing luxury developments
The Costa del Sol is seeing a steady rise in property prices, thanks to luxury developments.
In 2023, property prices in the region jumped, with some areas enjoying double-digit increases. By March 2024, the average price per square meter hit €2,849, marking a 13.9% yearly increase. This surge is due to strong demand and a limited supply of high-quality homes.
International buyers are a big part of this trend. Many tourists, and future property owners, hail from the UK, Germany, and France. This influx of international visitors is driving up demand for luxury homes, which in turn pushes prices higher. The Costa del Sol's sunny climate and laid-back lifestyle make it a magnet for affluent buyers looking for luxury living.
High-end real estate investments are also pushing prices up. Places like Marbella, Estepona, and Sotogrande are seeing significant price hikes, thanks to their popularity among luxury buyers. The involvement of famous architects and developers in new projects adds to the region's allure, keeping high-net-worth individuals interested.
These luxury developments are not just about homes; they often include amenities like golf courses, marinas, and exclusive clubs, which further enhance the area's appeal. This combination of lifestyle and luxury is a key factor in the ongoing property price increase.
Sources: Bric Group, Costa del Sol Tourism Statistics, Enso Team Realty, Marbella Invest Pro
5) Rental yields for rural properties in Andalusia will drop as demand moves to urban areas
In Andalusia, rental demand is shifting from rural to urban areas.
People are flocking to cities because urbanization is on the rise, offering more amenities and job opportunities. This trend is leaving rural areas with fewer residents, as the population increasingly concentrates in urban centers.
The economy in Andalusia is booming, especially in services and tourism, which are mainly centered in cities. This economic growth is drawing more people to urban areas, boosting the demand for city properties. Investors are also eyeing urban real estate due to rising property values and the potential for higher rental yields.
Young people are particularly drawn to city life, seeking education and job prospects. Media often highlights the perks of urban living, which resonates with this demographic. Consequently, rural properties are facing longer vacancy periods as the demand shifts towards urban areas.
As more people move to cities, rural rental yields are decreasing. This shift is evident in the changing migration patterns, with urban areas becoming the preferred choice for many.
Sources: The Property Finders, BBVA Research, Sciendo, CaixaBank Research
Get to know the market before you buy a property in Andalusia
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.

6) Granada’s property prices will drop as younger people move to bigger cities for jobs
Granada's property prices are dropping as young people head to bigger cities for jobs.
In the first half of 2024, Granada saw a modest increase of just 788 new residents, while cities like Malaga attracted 6,298 newcomers during the same period. This shift highlights how young adults are choosing larger urban areas for better career prospects.
Malaga has been a magnet for growth, adding 155,620 people since 2014, making it a key player in Andalusia's population boom. This trend shows that young professionals are flocking to these bustling cities, leaving places like Granada behind.
Real estate data backs this up, with Granada's property demand on the decline. From December 2023 to October 2024, the average residential property price in Granada fell by 1.35%. This drop is tied to the exodus of young talent seeking opportunities in larger cities.
Granada's charm remains, but the lure of better jobs elsewhere is hard to resist for many young people. As they move, the local real estate market feels the impact, with fewer buyers and a softening of prices.
For potential buyers, this could mean more affordable options in Granada, but it's essential to consider the broader economic shifts driving these changes.
Sources: Surinenglish, CaixaBank Research, Indomio
7) Andalusia's luxury market, especially Marbella, will attract more foreign buyers
Foreign buyers are increasingly eyeing Andalusia's luxury market, especially in Marbella.
In 2024, Marbella's luxury real estate market, part of the "Golden Triangle" with Estepona and Benahavís, is booming. Sales of properties over €2 million have jumped by 19.47% since 2019, showing a strong recovery after the pandemic. This area is becoming a hotspot for luxury living in Europe.
Marbella alone has seen a 20% increase in luxury property deals compared to 2023. Estepona and Benahavís have also thrived, with a staggering 120% growth over the past 16 years. The Costa del Sol is now a magnet for high-end buyers from across Europe.
International interest is surging, with buyers from the UK, Sweden, the Netherlands, Eastern Europe, and the US. Young investors from tech and crypto sectors make up about 10% of these luxury buyers, adding to the diverse mix of profiles driving demand.
In Marbella, the average price per square meter for luxury homes is now €4,812, with beachfront properties fetching over €30,000/m². This reflects the high demand and limited supply, pushing prices up across the board.
Real estate agencies like Drumelia are buzzing with activity. They completed 40 high-end transactions in the first half of 2024, with an average sale price of €4,595,560, marking a 23% rise from last year. Marbella is clearly a top choice for foreign investors.
Sources: Pure Living Properties, La Costa Casa, Panorama Marbella, Drumelia
8) Property prices in Andalusia's inland areas may dip slightly as coastal regions draw more buyers
In Andalusia, property prices in inland areas are slightly declining while coastal regions are drawing more buyers.
Inland property sales are dropping, with places like Marbella, Benahavis, and Estepona seeing a 20.31% decrease in 2023. This shows a waning interest in these areas. Meanwhile, the Costa del Sol is booming. The Golden Triangle, which includes Marbella, Estepona, and Benahavis, saw a 6.98% rise in sales in the second quarter of 2024, highlighting the strong demand there.
People are moving towards the coast, driven by tourism. In 2023, 33.9 million tourists visited Andalusia's coastal areas, with numbers expected to hit 35 million in 2024. This surge often leads to more people settling near the sea. Surveys show a preference for coastal living, with the Golden Triangle's average price per square meter reaching €4,229 in June 2024, indicating a strong market for luxury homes.
Economic growth and infrastructure improvements are mainly happening along the coast, boosting their attractiveness. The Andalusian government is pushing tourism in these areas, leading to significant economic gains. Coastal regions also offer better rental returns than inland areas. For example, in October 2024, the average rental price per square meter in Málaga was €14.99, compared to €6.43 in Jaén.
Sources: DM Properties, Reporters.es, Indomio, Spanish News Today, Andalucia4You

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) Seville's rental prices will rise moderately as the expatriate community grows
Seville's rental prices are climbing due to a growing expatriate community.
In recent years, 43,164 residents in Seville are expats or foreign-born, adding a vibrant mix to the city's culture. This influx has sparked a noticeable demand for rental properties, especially in neighborhoods favored by these newcomers. As a result, rental prices have jumped by 5.5% in just the past year, and over the last five years, they've surged by 16%.
Seville's appeal isn't just about its charm; the city's economic growth is a magnet for international professionals. Initiatives like Sevilla City One are transforming the city into a hub for global talent, making it a hot spot for investment. This economic boom is drawing more expatriates who often choose to rent, further driving up demand.
Neighborhoods popular with expats are seeing the most significant changes. These areas are not only culturally rich but also offer amenities that cater to international tastes, making them highly sought after. The steady rise in rental prices reflects this growing interest and the city's evolving landscape.
Seville's transformation into a cosmopolitan city is evident in its rental market dynamics. The influx of international residents is reshaping the city's housing demand, with more people opting for the flexibility of renting. This trend is likely to continue as Seville strengthens its position as a key player in the global economy.
For potential property buyers, understanding these shifts is crucial. The city's ongoing development and the increasing number of expatriates suggest that investing in Seville's rental market could be a wise decision. As the city continues to attract international attention, rental prices are expected to maintain their upward trajectory.
Sources: N26, Sevilla City One, Savills
10) Young professionals will flock to Andalusia's cities, driving up demand for urban apartments
Young professionals are flocking to Andalusia's urban centers thanks to the region's growing job market.
Seville and Malaga are turning into key spots for tech startups and remote work, with top-notch coworking spaces and fast internet. These cities are perfect for digital nomads and young professionals who want a lively work-life balance. The Regional Government of Andalusia is also pouring money into urban regeneration projects, like a new public transport system, making city life more accessible and sustainable.
Andalusian cities like Seville and Granada are rich in culture and social life, which is a big draw for young professionals. Historic neighborhoods such as Realejo and Albaicin are hot spots for this crowd, driving up the demand for city apartments. Meanwhile, Marbella's real estate market is on fire, with property prices climbing, showing a growing interest in city living.
With Andalusia's GDP expected to grow by 2.1% in 2023 and 1.8% in 2024, the region is set to create 155,000 jobs, bringing the unemployment rate down to 18.3% by 2024. This economic upswing is making the area even more appealing for career-focused individuals.
Seville and Malaga are not just about work; they offer a vibrant lifestyle that young professionals crave. The mix of modern amenities and cultural heritage makes these cities stand out. The ongoing investments in infrastructure and urban development are transforming these cities into dynamic urban centers.
As more young professionals move to these urban areas, the demand for city apartments is expected to rise. This trend is particularly noticeable in neighborhoods that offer a blend of history and modernity, making them attractive places to live and work.
Sources: BBVA Research, CPS, Telework Andalucia, Panorama Marbella
11) Demand for accessible, senior-friendly housing will rise in Andalusia due to an aging population
The aging population in Andalusia is reshaping the housing market.
In 2024, Andalusia had a notable number of people aged 45 to 49, but more strikingly, there were about 82,000 individuals aged 90 and over. This trend is expected to continue, with the aging population wave peaking in the latter part of the 2020s. As more people enter their senior years, the demand for accessible and senior-friendly housing is increasing.
The senior housing industry is experiencing historic demand growth. The 80+ population growth is beginning to outpace inventory growth, creating a gap between supply and demand. This highlights the urgent need for more senior housing options, as the current market struggles to keep up with the needs of an aging population.
Surveys reveal that older adults prefer housing that supports their independence while offering assistance with daily activities. They are looking for culturally specific housing, LGBTQ+-friendly environments, and pet-inclusive policies. These preferences indicate a shift towards more personalized and accessible living arrangements for seniors.
For those considering investing in property, understanding these trends is crucial. The aging population in Andalusia will drive demand for accessible and senior-friendly housing, making it a potentially lucrative market. As the population continues to age, the need for housing that caters to these specific preferences will only grow.
Sources: Statista, NIC MAP Vision, Adage Marketing Group
Buying real estate in Andalusia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.

12) Scandinavian buyers will increasingly favor Andalusia for its favorable climate conditions
Scandinavian buyers are increasingly drawn to Andalusia, thanks to its favorable climate conditions.
In recent years, Swedish buyers have made up a notable 13% of property transactions in Malaga province. This shows how Andalusia is becoming a hot spot for Scandinavians looking for a sunny escape. The region's climate is a big attraction, especially for retirees who are tired of the cold and want to enjoy a milder environment.
Many Scandinavian pensioners are on the hunt for vacation homes in warmer areas, and Andalusia fits the bill perfectly. The area is already home to a large Scandinavian community, with over 2,500 Swedes living permanently in places like Nueva Andalucia. This established community makes it easier for newcomers to settle in and feel at home.
The media has been buzzing about Andalusia's climate perks for Scandinavian retirees. Promotional activities often highlight the region's mild winters, which are a stark contrast to the chilly Scandinavian weather. This has led to a surge in interest from Scandinavian clients, particularly in the luxury real estate market in Marbella.
Marbella is especially appealing because it combines a great climate with luxury living. The area is known for its high-end properties that attract those looking for a bit of glamour along with sunshine. This combination is hard to resist for many Scandinavians who are used to a more reserved lifestyle back home.
With the growing interest from Scandinavians, Andalusia is likely to see even more inquiries and property purchases in the coming years. The region's climate, community, and luxury offerings make it a top choice for those looking to escape the cold.
Sources: Nueva Andalucia: Little Stockholm for large number of Swedes, Invasion of Scandinavian Seniors, Luxury Real Estate Market in Marbella Analysis 2024
13) High-net-worth individuals will keep being drawn to Andalusia's luxury beachfront villas
The allure of luxury beachfront villas in Andalusia is undeniable, consistently drawing in high-net-worth individuals.
In the heart of the Golden Triangle, the luxury real estate market is booming. Marbella saw a 20% jump in luxury property transactions in 2024 compared to the previous year. Estepona and Benahavís have also been on a roll, with a 120% growth over the past 16 years, highlighting the strong demand for upscale homes.
Andalusia's government has sweetened the deal by scrapping the wealth tax for residents and second-home owners. This, along with lower income, inheritance, and gift taxes, has made the region even more attractive to wealthy buyers looking for a smart investment.
The lifestyle in Andalusia is another big draw. With its delicious gastronomy, sunny climate, and rich cultural attractions, the region offers a unique blend of luxury and leisure. It's no wonder that celebrities and business leaders are flocking here, adding to its glamorous reputation.
For those seeking a luxurious lifestyle, Andalusia is a top choice. The presence of high-profile individuals only enhances its appeal, making it a sought-after destination for affluent buyers.
Sources: Villas Fincas, Pure Living Properties, Knight Frank
14) Interest in properties near nature in Andalusia will grow due to a focus on wellness and outdoor activities
In Andalusia, there's a growing trend towards wellness and outdoor activities that's reshaping the real estate market.
People are increasingly drawn to properties that offer a slice of nature, and it's no wonder. The wellness tourism market in Spain is booming, with revenues expected to jump from $26.8 billion in 2022 to $70 billion by 2030. This surge is largely due to travelers seeking wellness experiences, and accommodations play a big role in this.
Andalusia is riding this wave with gusto. In 2023, the region welcomed 12.2 million international tourists, surpassing pre-pandemic numbers. Many of these visitors are interested in wellness tourism, which often means looking for properties that offer easy access to nature. Places like the Serendia Wellness Retreat, known for its luxury stays and nature-focused activities, are perfect examples of this trend.
Real estate reports consistently show a strong demand for homes surrounded by nature. This isn't just about aesthetics; it's about the growing popularity of eco-friendly living and the health perks of being close to nature. People want homes that support a sustainable lifestyle and offer a breath of fresh air.
Andalusia's tourism strategies are tapping into this interest by promoting wellness and outdoor activities. The region's tourism industry is thriving, thanks in part to this focus on nature and well-being. It's clear that properties with natural surroundings are becoming increasingly desirable.
For those considering a move to Andalusia, the appeal of properties with access to nature is undeniable. The combination of eco-friendly living and wellness tourism is a powerful draw, making these properties a hot commodity in the market.
Sources: Grand View Research, Andalucia.com, Serendia Wellness
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.