The luxury real estate market in Andalusia is experiencing a boom supported by two main factors: the dynamic development of the region’s capitals and interest in the Costa del Sol.
Combined with limited supply and a context marked by stable, though increasingly diversified, foreign demand, this is making southern Spain one of the leading destinations in the premium segment.
Málaga and the Costa del Sol set the pace for the market
An analysis of the luxury real estate market carried out by Engel & Völkers, based on transaction data from last year, confirms this trend and highlights three areas ahead of the rest: Seville, Cádiz and Málaga.
The latter province has strengthened its position as one of the most stable markets – not only thanks to the prestigious Costa del Sol, but also due to major districts located near the capital.
First of all, the Pacífico district stands out, where major developers such as Metrovacesa, Aedas and Sierra Blanca are building exclusive residential complexes. As a result, the average price of luxury real estate in this area has reached 9,130 euros/m², making it one of the most expensive in the province.
Within the municipality, areas such as La Malagueta, El Limonar, Cerrado de Calderón and the very centre of the city can be found, where prices range from 5,000 to 6,000 euros/m².
If we move to the so-called “Golden Triangle”, formed by Marbella, Benahavís and Estepona, prices range from 6,000 to 9,000 euros/m², although in the exclusive Sierra Blanca area there are properties where 1 m² costs almost 13,000 euros.
Other notable areas include La Cala de Mijas and Puerto Marina, where the average price is below 5,000 euros/m², despite their privileged location and strong demand.
Foreign buyers account for most transactions
The report notes that foreign buyers account for more than 70% of transactions completed in the Costa del Sol markets.
In this context, the most active buyers are British, German and Scandinavian; at the same time, the growing presence of US citizens is also noted.
The agency also highlights diversification towards foreign family buyers, who view the Costa del Sol as a lifestyle choice rather than merely a place for luxury holidays.
Seville and Cádiz are also strengthening their positions
Seville ranks second in popularity. In the most central areas of the Andalusian capital, there is a clear hierarchy by district – for example, in Santa Cruz-Alfalfa, where the average price approaches 7,000 euros/m².
This is followed by Plaza de la Gavidia-San Lorenzo, San Vicente and Plaza de Cuba-República Argentina, where the price per 1 m² exceeds 5,000 euros.
Unlike Málaga, Seville’s market is supported by replacement housing demand, local buyers and growing investor interest. At the same time, new-build developments are absorbing demand for primary residences.
Cádiz and its province are also showing stable dynamics, with average prices of around 2,500 euros/m², although in premium coastal areas such as La Alcaidesa, peaks above 8,000 euros/m² have been recorded, and in Tarifa even up to 8,500 euros/m².
The Cádiz market continues to rely mainly on domestic demand, although the share of foreign buyers purchasing second homes is growing.
Among the most sought-after municipalities are Sanlúcar de Barrameda, El Puerto de Santa María, Chiclana and Conil de la Frontera, where prices exceed 3,200 euros/m², and in the most exclusive areas – 3,400 euros/m².
New-build developments and branded residences are becoming growth drivers
As Engel & Völkers notes, the new-build segment has strengthened its position as one of the main drivers of growth in the Andalusian market.
In Seville and Málaga, much of the momentum comes from projects aimed at primary residences, while on the coast, properties with higher added value, targeted at foreign demand and second homes, are gaining importance.
The report also mentions the boom in branded residences and premium projects linked to wellness and hospitality services – especially on the Costa del Sol, further strengthening Andalusia’s position in the luxury housing market.
