{"id":6746,"date":"2025-02-12T10:15:45","date_gmt":"2025-02-12T10:15:45","guid":{"rendered":"https:\/\/hihomes.es\/?p=6746"},"modified":"2025-02-14T10:26:09","modified_gmt":"2025-02-14T10:26:09","slug":"is-spains-property-market-still-affordable-in-2025-a-deep-dive-into-costa-del-sol-real-estate","status":"publish","type":"post","link":"https:\/\/hihomes.es\/cs\/is-spains-property-market-still-affordable-in-2025-a-deep-dive-into-costa-del-sol-real-estate\/","title":{"rendered":"Is Spain’s Property Market Still Affordable in 2025? A Deep Dive into Costa del Sol Real Estate"},"content":{"rendered":"
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For decades, Spain has been seen as an affordable haven<\/strong> for international property buyers looking for second homes, investment opportunities, or a complete relocation. But is that still the case in 2025?<\/p>

In this latest episode of Costa Insights<\/strong>, Kian and Kim discuss whether Spain remains an affordable market, how prices have evolved, and whether there are still bargains to be found\u2014particularly on the Costa del Sol<\/strong>, one of Spain\u2019s most sought-after regions.<\/p>

Spain\u2019s Real Estate Market: Then vs. Now<\/strong><\/h2>

To understand where the market stands today, we need to take a step back in time.<\/p>

Kim, who has lived on the Costa del Sol since 1990<\/strong>, recalls buying her first one-bedroom duplex for just \u00a314,000 (\u20ac16,000)<\/strong>. Her first family home<\/strong>? A townhouse for 10 million pesetas<\/strong> (around \u00a350,000 \/ \u20ac60,000<\/strong>).<\/p>

Fast-forward to today, and those prices are unthinkable<\/strong>. Over the past 30 years<\/strong>, Spanish property prices have risen steadily, but the biggest recent shift came post-COVID<\/strong>.<\/p>

Spain\u2019s Real Estate Market: Then vs. Now<\/strong><\/h2>

To understand where the market stands today, we need to take a step back in time.<\/p>

Kim, who has lived on the Costa del Sol since 1990<\/strong>, recalls buying her first one-bedroom duplex for just \u00a314,000 (\u20ac16,000)<\/strong>. Her first family home<\/strong>? A townhouse for 10 million pesetas<\/strong> (around \u00a350,000 \/ \u20ac60,000<\/strong>).<\/p>

Fast-forward to today, and those prices are unthinkable<\/strong>. Over the past 30 years<\/strong>, Spanish property prices have risen steadily, but the biggest recent shift came post-COVID<\/strong>.<\/p>

How COVID Transformed the Costa del Sol Property Market<\/strong><\/h2>

After the pandemic, there was a huge surge in demand<\/strong>. People across Europe reevaluated their lifestyles, prioritizing outdoor space, better weather, and remote work<\/strong>\u2014all of which made Spain even more attractive.<\/p>

Many areas that were previously considered holiday home markets<\/strong> transformed into relocation destinations<\/strong>, particularly on the Costa del Sol. This shift drove prices up significantly<\/strong>, as more international buyers sought permanent homes rather than just vacation properties.<\/p>

What\u2019s Driving Prices Up? The Shift from Holiday Homes to Full-Time Living<\/strong><\/h2>

One of the biggest reasons prices have increased is the fundamental shift in buyer profiles<\/strong>.<\/p>

\ud83d\udca1 A decade ago:<\/strong> The average international buyer on the Costa del Sol was in their mid-50s<\/strong>, purchasing a second home<\/strong> or holiday property<\/strong>.<\/p>

\ud83d\udca1 Today:<\/strong> More young professionals and families<\/strong> are relocating to Spain, often working remotely while enjoying a higher quality of life.<\/p>

This change in buyer demographics means that demand is no longer seasonal<\/strong>\u2014people are looking for homes they can live in year-round<\/strong>. With limited supply<\/strong>, competition for available properties is fierce.<\/p>

Supply vs. Demand: The Key Issue in Today\u2019s Market<\/strong><\/h2>

Even with new developments popping up across the region, resale stock remains low<\/strong>.<\/p>

If you’re searching for a property in high-demand areas like Estepona town center or Marbella<\/strong>, you\u2019ll quickly realize that there\u2019s not much available<\/strong>. And when something does come on the market, buyers need to move fast<\/strong>\u2014because they\u2019re competing with multiple other buyers.<\/p>

\u2714 More buyers, fewer properties<\/strong>
\u2714 High demand, slow supply<\/strong>
\u2714 Rising prices, especially in prime locations<\/strong><\/p>

For buyers who are patient, off-plan properties<\/strong> can offer better value. However, they also require waiting 12\u201324 months<\/strong> for completion.<\/p>

Can You Still Find Affordable Properties in Spain?<\/strong><\/h2>

The answer is yes\u2014but not everywhere<\/strong>.<\/p>

If you\u2019re looking in prime areas like Marbella<\/strong>, prices are significantly higher than they were a few years ago. But if you’re willing to explore areas that aren\u2019t as \u201chot\u201d<\/strong>, there are still great deals to be found.<\/p>

\ud83d\udfe2 Where can you still find properties under \u20ac350,000?<\/strong><\/p>