The Spanish property market has been dominated in recent years by second-hand properties, which accounted for approximately 90% of transactions in 2023, according to the Bank of Spain's latest annual report. This situation responds to the accumulation of used housing stock after the crisis of 2008-2013 and the lack of new construction, making them a key opportunity for investors in 2025.
However, this imbalance between supply and demand has led to a growing valuation and revaluation of new-build properties, making it a key opportunity for investors in 2025. Energy efficiency, strong demand in premium areas, and favourable financing conditions make new-build properties a profitable and secure investment option.
In this article we will analyse the current panorama of the Spanish real estate market, the opportunities of investing in housing for rent or resale, and why the Costa del Sol has established itself as the best place to invest in new construction housing in 2025.
The keys to the current real estate market
Investing in the Spanish housing market in 2025 presents both opportunities and challenges. Below, we examine various factors that could influence the decision to invest in property in Spain:
1. Evolution of the real estate market in Spain
In recent years, the Spanish real estate market has shown notable strength. According to chapter 4 of the latest annual report of the Bank of Spain, despite a slowdown observed since the last quarter of 2022, the sale and purchase of homes has maintained a significant volume. This dynamism has been driven, in part, by demand from foreign buyers and less dependence on mortgage credit, in a context of tightening financing conditions. On the Costa del Sol specifically, demand remains strong, and the supply of new developments is also holding steady, with new launches replenishing what was sold in 2023 and 2024.
2. Profitability of investment in rental housing
Investing in rental homes continues to be an attractive and profitable option due to the returns obtained. The trend for leasing is likely to continue, particularly in high-demand areas
3. Demand for housing on the Costa del Sol: the best place to invest
The Costa del Sol continues to be a region of interest for investors, especially in the luxury new-build segment. The luxury real estate market in this area has experienced a notable growth in 2024 and this trend is likely to continue in 2025, with estimated annual increases between 5% and 8% in exclusive areas such as the Golden Mile in Marbella and La Zagaleta in Benahavís.
This growth indicates sustained demand and an opportunity for investors looking for the best place to invest in housing for rent or resale in Spain.
Why invest in new construction homes in 2025?
Despite the predominance of second-hand housing, the new-build segment has maintained solid demand, driven by factors such as:
- Greater energy efficiency and sustainability. The new construction homes are designed following current energy efficiency standards. This means savings in energy and greater profitability in the long term.
- Greater revaluation and rental demand. The shortage of new-build properties and the growing demand in strategic areas, such as Costa del Sol, guarantee greater capital gains in the medium and long term. Furthermore, this type of property is in high demand in the housing market. luxury and tourist rental.
- Favorable financing conditions for new construction. Despite the increase in interest rates at the end of 2024, many developers have established flexible payment plans to facilitate the purchase of new construction housing, which represents an advantage for investors.
- Premium locations and developments with exclusive services. The new construction promotions on the Costa del Sol are located in strategic areas with views of the Mediterranean Sea, proximity to golf courses, natural landscapes, high-end infrastructure and services, which makes them a preferred option for national and international buyers. The real estate promotions that Prime Invest offers on the coast of Malaga meet all these conditions.
The Costa del Sol, the best place to invest in new construction housing
The Costa del Sol continues to position itself as a key destination for real estate investment in 2025, especially in the new-build segment. Cities like Marbella, Estepona, Mijas and Benahavís continue to attract buyers due to their privileged climate, luxury infrastructure and the growing premium rental market.
Among the most outstanding real estate developments in new construction On the Costa del Sol, Prime Invest offers:
- Dunique Marbella It's a promotion of new construction homes designed with a style avant-garde and finishes high end. With direct access to the beach and a luxurious environment, this development offers apartments and villas with sea views, large spaces and first-class common areas. It is the ideal option for those looking for quality, privacy and a safe investment in one of the best areas of the Costa del Sol.
- Mane Residences. Located in Benalmadena, Mane Residences is an exclusive development of new construction homes with an architecture of contemporary and panoramic sea views. Designed to offer luxury and functionality, has designer apartments and penthouses, large terraces and quality materials. maximum quality. Furthermore, it has an infinity pool and garden areas, which makes it an ideal option for both investment and habitual residence.
- Altezza Suites. Modern apartments with innovative architectural design, located in one of the most dynamic areas of Malaga. With bright spaces and premium finishes, these homes offer private terraces, exclusive common areas and a strategic location close to the city center and main transport links. It is an excellent option for those looking to invest in housing to rent or settle in one of the cities with the greatest projection in Spain.
- Gardens of the Lagoons II. Located in Mijas Costa, Jardines de las Lagunas II is a new construction development that stands out for its functional design and natural environment. Composed of modern apartments with large terraces, green areas and community pool, this urbanization combines comfort and accessibility, being close to shops, services and a few minutes from the beach. Ideal for both investors and those looking for a home in a relaxed and well-connected environment.
Recapitulating, is it a good option to invest in housing in Spain in 2025?
Although the Spanish real estate market offers opportunities, it is essential that investors carefully analyze current trends, government policies and the specific dynamics of each region. The Costa del Sol, with its tourist attraction and growth in the luxury sector, is presented as an outstanding option for those interested in investing in new construction homes.
The housing supply shortage, the high demand in premium areas such as Costa del Sol and the advantages in energy efficiency and revaluation They turn new construction properties into a safe and profitable investment.
If you are looking to invest in housing on the Costa del Sol, in Prime Invest We offer you expert advice and access to the best real estate promotions in new construction. Contact us and discover how to maximize your investment in the Spanish real estate market.
Share this:
