The Spanish National Institute of Statistics and Census (INE) reports that in January 2025 new build property transactions dominated the Costa del Sol property market and achieved the highest share of the market in over 10 years. Málaga Province (Costa del Sol) was one of two autonomous regions which saw the highest percentage of new build homes sales, throughout Spain.
In total, there were 14,164 new build property sales registered (throughout Andalucía), representing an increase of 30.9%, compared to 2024. Whereas the increase in the number of resale property transactions was much lower, which saw only a 6.1% (46,486 units) year on year increase from January 2024.
Taking these latest and the previous sales accumulated over recent months, in January 2025, new build sales account for 23.4% of the market, which is the highest for over a decade. However, it is unlikely that new build transactions will exceed the historic 50 percent market share as seen between 2008 and 2015, due to a combination of factors:
- Increasing demand v dwindling supply
- Permit delays
- Shortage of land
- Labour shortages
- Higher construction costs
Unique new build villa investment opportunity
It is against this background that m2Casas, Danish owned construction and development company, has launched a game changing new investment opportunity offering access to the red-hot Costa del Sol property market. The strategy follows a tried and tested formula, of developing and selling luxury bespoke villas in sought-after locations mainly in and around the Golden Triangle (Marbella, Estepona and Benahavís), that will yield high potential returns on investment with minimal risk. This will be achieved by:
- Permitted land: Buying land in prime positions with building licences in place.
- Execution projects: Developing high-end luxury villas designed by m2Casas’s in-house architects to appeal to the target market of international buyers
- In-house builders: Overcoming the labour shortage by using m2Casas international trained building teams
- Off–plan sales: Risk is minimised and increased liquidity by securing sales prior to construction / completion.
- International network: Any villas not sold prior to construction will be promoted via an international network of real estate agents.
Insights into the Costa del Sol new build homes market 2025
At the time of writing (April 2025) statistics comparing the total number of new build transactions in Marbella between 2024 and 2025 are not available. However, insights into the wider real estate market can provide some context.
The luxury real estate market on the Costa del Sol, more specifically Marbella, Estepona and Benahavis, saw 20 per cent growth and over 3.2 billion euros of investment in 2024. The surge in growth and record high prices in the area (4,961€ m² in Marbella) can be attributed to the above-mentioned scarcity of supply and the consistently high demand amongst HNWI international buyers.
Malaga’s construction industry
As reported by the Sur in English (quoting figures from INE), Málaga currently has a deficit of homes and the drastic imbalance between supply and demand is not only creating a shortage, but also driving property prices up. Over the next 15 years, home construction needs to reach around 12, 000 per year for at least the next five years. The high demand has had a knock-on effect, causing a labour shortage which has increased prices across the entire project. m2Casas has been able to circumvent the lack of available labour and the resultant delays, by using a professional in-house team of builders.
New buyer profiles
In addition, there are several new buyer profiles that have become more prevalent throughout 2024, such as young tech entrepreneurs who are attracted by Málaga’s Technology Park (Parque Tecnologico de Andalucia) and the opportunities offered by the Digital Nomad Visa. Also, the number of USA buyers who are looked to relocate to Spain increased by 34% throughout 2024, as did the number of buyers from the Middle East, facilitated by the introduction of new direct flights from Malaga to New York and Dubai respectively.
There is also a growing preference for new build villas over resales, as younger buyers have an appetite for modern design and amenities, energy efficiency, sustainable building practices and the opportunity for customisation, plus the benefit of strong returns on their investment.
In conclusion, high demand is expected to continue throughout 2025, based on the unprecedented activity in Q1 2025 (specifically the increase in new build homes sales), and favourable economic conditions (such as the anticipated drop-in interest rates which will further boost the premium property market (priced between 2€ to 5€ million).
FAQs
The first step is to contact reputable property development and construction company, such as Marbella based m2Casas, to arrange a meeting to discuss your project. This can be done by completing a contact form via the website https://www.m2casas.com/en or by calling + 34 951 668 795 or emailing info@m2casas.com.
In Q1 2025, the Costa del Sol, and more specifically Marbella, is considered to be an extremely buoyant market for new build homes. There is a consistently high demand for premium properties and a dwindling supply of new builds. This means that luxury new build villas, offer investors the opportunity to realise potentially high returns on their investment.
Many construction projects on the Costa del Sol experience delays, which can be caused by a number of issues, from waiting for licences, delivery of materials, changes made to the architectural plans once construction has started and a lack of builders. However, you can minimise the risk of delays, by working with a development and construction company that has its own team of builders. For example, m2Casas offers a complete in-house service, including project management, architects, builders and legal advice. By employing a team of experienced international builders, m2Casas’ new home construction projects are not affected by delays due to labour shortages.
