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For decades, Spain has been seen as an affordable haven for international property buyers looking for second homes, investment opportunities, or a complete relocation. But is that still the case in 2025?
In this latest episode of Costa Einblicke, Kian and Kim discuss whether Spain remains an affordable market, how prices have evolved, and whether there are still bargains to be found—particularly on the Costa del Sol, one of Spain’s most sought-after regions.
Spain’s Real Estate Market: Then vs. Now
To understand where the market stands today, we need to take a step back in time.
Kim, who has lived on the Costa del Sol since 1990, recalls buying her first one-bedroom duplex for just £14,000 (€16,000). Her first family home? A townhouse for 10 million pesetas (around £50,000 / €60,000).
Fast-forward to today, and those prices are unthinkable. Over the past 30 years, Spanish property prices have risen steadily, but the biggest recent shift came post-COVID.
Spain’s Real Estate Market: Then vs. Now
To understand where the market stands today, we need to take a step back in time.
Kim, who has lived on the Costa del Sol since 1990, recalls buying her first one-bedroom duplex for just £14,000 (€16,000). Her first family home? A townhouse for 10 million pesetas (around £50,000 / €60,000).
Fast-forward to today, and those prices are unthinkable. Over the past 30 years, Spanish property prices have risen steadily, but the biggest recent shift came post-COVID.
How COVID Transformed the Costa del Sol Property Market
After the pandemic, there was a huge surge in demand. People across Europe reevaluated their lifestyles, prioritizing outdoor space, better weather, and remote work—all of which made Spain even more attractive.
Many areas that were previously considered holiday home markets transformed into relocation destinations, particularly on the Costa del Sol. This shift drove prices up significantly, as more international buyers sought permanent homes rather than just vacation properties.
What’s Driving Prices Up? The Shift from Holiday Homes to Full-Time Living
One of the biggest reasons prices have increased is the fundamental shift in buyer profiles.
💡 A decade ago: The average international buyer on the Costa del Sol was in their mid-50s, purchasing a second home or holiday property.
💡 Today: More young professionals and families are relocating to Spain, often working remotely while enjoying a higher quality of life.
This change in buyer demographics means that demand is no longer seasonal—people are looking for homes they can live in year-round. With limited supply, competition for available properties is fierce.
Supply vs. Demand: The Key Issue in Today’s Market
Even with new developments popping up across the region, resale stock remains low.
If you’re searching for a property in high-demand areas like Estepona town center or Marbella, you’ll quickly realize that there’s not much available. And when something does come on the market, buyers need to move fast—because they’re competing with multiple other buyers.
✔ More buyers, fewer properties
✔ High demand, slow supply
✔ Rising prices, especially in prime locations
For buyers who are patient, off-plan properties can offer better value. However, they also require waiting 12–24 months for completion.
Can You Still Find Affordable Properties in Spain?
The answer is yes—but not everywhere.
If you’re looking in prime areas like Marbella, prices are significantly higher than they were a few years ago. But if you’re willing to explore areas that aren’t as “hot”, there are still great deals to be found.
🟢 Where can you still find properties under €350,000?
- Inland towns like Coín, Guaro, and Alhaurín de la Torre (just 25 minutes from Málaga)
- West Estepona & Casares—less saturated than Marbella, but with excellent value
- Coastal areas towards Cadiz, where prices remain lower than the eastern Costa del Sol
Kim recently viewed resale properties in West Estepona for under €300,000, proving that there are still opportunities—just not in every part of the market.
Has Inflation Driven Prices Up?
It’s not just demand that has increased prices—inflation has played a huge role.
📈 Between 2020 and 2025, cumulative inflation has been around 30%.
💰 That means €100,000 in 2019 has the buying power of just €70,000 today.
As Kian explains, real estate is one of the best hedges against inflation. Unlike cash, which loses value over time, property protects your investment.
If you’re thinking, “Should I wait for a price drop?”—consider this:
✔ Spain’s real estate market is now more mature and stable
✔ There’s no sign of a housing crash like 2008
✔ Buyers today have much stronger financial backing, with fewer risky mortgages
What About the Rental Market? The Rise of “Build-to-Rent” Developments
A new trend emerging in 2025 is Build-to-Rent developments.
Traditionally, developers build properties to sell, but some major investors are now building entire communities designed for long-term rental.
💡 Why?
Because demand for long-term rental housing is at an all-time high, especially from international professionals moving to Spain.
Developers are investing €120 million+ into these projects, further proving that demand is not slowing down.
Is Spain Still Affordable? The Final Verdict
Spanien is still affordable compared to other European countries, but it’s no longer the “cheap” destination it once was.
✔ If you’re looking for a prime location like Marbella or Nueva Andalucía, expect to pay a premium.
✔ If you’re open to up-and-coming areas, you can still find excellent value.
✔ The Costa del Sol remains one of the best places in Europe for lifestyle, investment, and long-term growth.
Key Takeaways for Buyers in 2025
✅ Be prepared—the best properties go fast, so have your financing ready.
✅ Work with an expert—local agents can help you find off-market deals before they hit the public listings.
✅ Stay flexible—if your budget doesn’t match Marbella prices, consider areas like West Estepona, Casares, or Málaga’s inland towns.
✅ Real estate is still a smart investment—with inflation driving up costs everywhere, property remains one of the safest assets.
Final Thought:
Yes, Spain is still affordable—but it’s no longer “cheap.” If you want to find the best deals, you need to act fast and work with the right people.
Thinking of Buying in Spain? Let’s Talk!
At Hallo Heime, we specialize in helping buyers find the best opportunities on the Costa del Sol—whether you’re looking for a holiday home, a rental investment, or a permanent residence.
📩 Contact Hi Homes:
📍 Website: Hallo Heime
📧 Email: [email protected]
📞 Office Phone: +34 951 084 264
📲 WhatsApp: +34 645 58 60 63
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