Average Price of New-Build Homes on the Costa del Sol Exceeds €1 Million

New-Build Housing Reaches Record Levels on the Costa del Sol

The Costa del Sol’s new-build property market is experiencing one of its strongest periods of growth. The average price of newly constructed apartments reached €5,725 per square metre in 2025, representing an annual increase of 23%.

This rise pushed the average total price of a new apartment to €1,016,608. It is the first time that the figure has crossed the €1 million threshold, according to the latest market study produced by property consultancy Savills.

The data reveals a market at record levels, with demand continuing to absorb a significant proportion of developments before construction has been completed.

New Villas Approach an Average of €3 Million

Prices have also risen in the market for newly built villas and detached homes. The average has reached €6,379 per square metre, with a typical property valued at approximately €2.97 million.

This segment also recorded growth of around 23% compared with the previous year. Luxury developments and projects located close to the coast have a particularly strong influence on these averages.

The figures therefore do not represent the price of every new home available on the Costa del Sol. Considerable differences remain depending on the municipality, location, size, views and facilities offered by each development.

More Than 12,000 Sales and Only 5,328 Homes Available

One of the main reasons behind the increase is the imbalance between supply and demand. The study recorded more than 12,000 sales compared with an available stock of approximately 5,328 properties.

The limited number of new homes allows many developments to maintain high prices and achieve strong sales during their earliest marketing phases. In some cases, properties are reserved off-plan before building work begins.

The shortage of development-ready land, lengthy planning procedures and rising construction costs add further pressure. These factors prevent supply from growing at the same pace as demand.

Marbella, Estepona and Mijas Lead the Market

Marbella remains one of the Costa del Sol’s most valuable property markets, particularly in the high-end residential sector. Estepona and Mijas Costa also account for a significant proportion of new developments and sales.

These locations combine access to the coast with road connections, international services, golf courses and an extensive leisure offering. They attract both second-home buyers and people planning to relocate permanently.

New residential projects are also being developed in Benalmádena, Fuengirola, Torremolinos and other parts of the coastline, although prices and property types vary considerably.

International Buyers Drive Demand

Foreign buyers play a fundamental role in the new-build market. British, Dutch, Swedish and German purchasers are among the nationalities with the strongest presence.

Many have substantial purchasing power and are looking for homes with terraces, communal gardens, swimming pools, security, wellness facilities and Mediterranean views. This demand encourages developers to focus on premium and luxury projects.

The Costa del Sol therefore competes with other residential destinations in southern Europe, supported by its climate, air connections, services and international lifestyle.

Prices Could Continue Rising Until 2028

Forecasts suggest that the upward cycle will continue over the next few years. As long as demand remains higher than supply, new-build prices could record double-digit increases until at least 2028.

The final trend will nevertheless depend on interest rates, land availability, planning permission, construction costs and the behaviour of international buyers.

The latest record confirms the strength of the Costa del Sol property market, but it also highlights the growing distance between the price of new developments and the purchasing power of many local residents.