As we move into the final quarter of 2025, the Marbella and Benahavís real estate markets are telling two distinctly different stories. If you're considering purchasing property on the Costa del Sol, understanding these market dynamics could save you significant money and help you make smarter buying decisions.

At Konrad Real Estate, we've been analyzing the latest market data to give our international clients the insider advantage they need. Here's what's really happening in the market right now.

The Tale of Two Property Types

The Costa del Sol market has become increasingly polarized, with villas and apartments moving in opposite directions. This divergence creates both challenges and opportunities for smart buyers.

Villas: A Seller's Market Intensifies

Villa inventory across Marbella has contracted by 7.4% year-over-year, while neighboring Benahavís has seen an even steeper decline of 10.0%. This scarcity isn't evenly distributed across all price points, which is where local market knowledge becomes crucial.

The Mid-Luxury Squeeze (€1.5M - €4M)

The tightest supply conditions exist in the €1.5 million to €4 million range, where inventory has been declining steadily since 2022. This is the sweet spot for many international buyers seeking quality family homes with privacy and amenities, which makes the competition particularly fierce.

If you're targeting this segment, you need an agent who can access off-market properties and move quickly when opportunities arise. Waiting for the "perfect" listing to appear on public portals means you're already too late.

Ultra-Luxury Stabilization (€4M+)

At the very top of the market, inventory above €4 million has stabilized. These exceptional properties typically appeal to a smaller, more specialized buyer pool, and sellers in this bracket have adjusted their expectations to current market conditions.

Entry-Level Scarcity (Under €1.5M)

Perhaps surprisingly, the entry-level villa market under €1.5 million has also tightened considerably. Strong demand combined with minimal new construction has created a shortage of affordable detached homes. For buyers hoping to find a bargain villa, the reality is stark: they're increasingly rare.

Apartments: More Choice, More Competition

While villa buyers face scarcity, the apartment market tells the opposite story. Apartment inventory in Marbella has surged 14.5% compared to last year, with Benahavís showing similar growth at 15.3%.

Mid-Range Expansion (€250K - €750K)

The strongest inventory growth is happening in the €250,000 to €750,000 segment. This range remains highly active among both Spanish nationals and international buyers, particularly those seeking modern developments with amenities like pools, gyms, and security.

For buyers in this bracket, the expanding inventory means more negotiating power, but only if you know how to leverage it effectively. This is where having an independent buyer's agent working exclusively for your interests becomes invaluable.

Luxury Apartment Growth (€750K+)

High-end apartments above €750,000 are also seeing inventory expansion, driven by new lifestyle-focused developments and modern penthouses. International buyers often favor these properties for their turnkey nature, community amenities, and lower maintenance compared to villas.

The Disappearing Budget Option (Under €250K)

The one shrinking apartment segment? Properties under €250,000. These budget-friendly options continue to become rarer, reflecting how even "affordable" Costa del Sol real estate is becoming increasingly premium.

What This Means for International Buyers

Understanding these market dynamics is one thing. Knowing how to act on them is another entirely.

If You're Buying a Villa

Villa buyers need to move decisively. The market scarcity, particularly in the €1.5M - €4M range, means:

• Speed matters: Properties often receive multiple offers within days
• Off-market access is critical: Many sellers test the waters privately before public listing
• Negotiation leverage is limited: Expect less price flexibility than in previous years
• Due diligence can't be rushed: Despite time pressure, thorough legal and structural checks remain essential

This environment makes having an expert buyer's agent with deep local connections absolutely crucial. We know which properties are coming to market before they're advertised and can position you to act immediately when the right opportunity appears.

If You're Buying an Apartment

Apartment buyers have more breathing room, but that doesn't mean you should be complacent:

• Selectivity pays off: With more inventory, you can be choosier about location, condition, and amenities
• Negotiation opportunities exist: Sellers facing more competition may be willing to negotiate on price or terms
• Quality varies significantly: More choice means more due diligence to separate well-built properties from rushed developments
• Timing flexibility: Unlike villas, you're less likely to lose out by taking time to evaluate options

However, don't mistake increased inventory for a buyer's market across the board. Well-priced, quality apartments in prime locations still move quickly.

The Bigger Picture: Market Adjustment, Not Slowdown

Some observers might interpret these diverging trends as signs of market weakness. That would be a misreading of what's actually happening.

The Costa del Sol market isn't slowing down; it's adjusting to value and supply realities across different segments. Demand remains robust, but buyers are becoming more discerning about price and quality. This is particularly true for international buyers who understand they're making significant investments and want proper representation.

The polarization between villa scarcity and apartment abundance reflects several underlying factors:

• Limited land for new villa developments in desirable coastal areas
• Planning restrictions making new villa construction more challenging
• Developer focus on apartment complexes with better profit margins
• Lifestyle shifts with some buyers preferring low-maintenance apartment living
• Investment patterns favoring rental-friendly apartment developments

Why Independent Buyer Representation Matters More Than Ever

In a market this complex and polarized, having an agent who works exclusively for you isn't just helpful—it's essential.

Traditional agents work for sellers. Their commission comes from the sale price, creating an inherent conflict of interest. They want you to buy quickly and at the highest price possible. They also typically represent specific developments or listings, limiting your access to the full market.

As your dedicated buyer's agent, we work only for you. Our success comes from finding you the right property at the best possible price and terms. We have no properties to push, no developments to promote, and no sellers to please.

This independence means we can:

• Access the entire market, including off-market opportunities
• Provide honest assessments of property values without sales pressure
• Negotiate aggressively on your behalf without conflicts
• Connect you with trusted legal and financial advisors who prioritize your interests
• Navigate Spanish property law with multilingual expertise

In a market where villa inventory is scarce and apartment competition is increasing, having someone who knows the local landscape and fights exclusively for your interests isn't a luxury—it's a necessity.

Making Smart Decisions in a Complex Market

Whether you're seeking a villa or an apartment, the key to success in today's Costa del Sol market is the same: expert guidance, local knowledge, and independent representation.

At Konrad Real Estate, we've helped hundreds of international buyers navigate exactly these kinds of market conditions. Our team speaks seven languages, has over 30 years of combined experience, and maintains the professional network you need to make smart property decisions on the Costa del Sol.

We don't just help you find a property. We ensure you understand the market dynamics, access the best opportunities, negotiate the strongest terms, and avoid the costly mistakes that can derail international property purchases.

The market statistics are clear: villas are scarce, apartments are abundant, and knowing how to navigate each segment requires specialized expertise. Don't go it alone.

Ready to make a smart property investment on the Costa del Sol? Let's discuss what these market trends mean for your specific situation and how we can help you find the perfect property at the best possible price.

Click 'Learn more' to get started with your dedicated buyer's agent on the Costa del Sol.