Luxury Housing Sidesteps the Slowdown: Prices and Transactions Rise as the General Market Falls by 2%
The Spanish real estate sector has begun to show some signs of slowdown. According to data from the General Council of Notaries, housing sales in Spain fell by 2% year-on-year in May, marking the third consecutive month of decline. This trend is reinforced by more cautious forecasts from institutions such as CaixaBank Research and Ibercenter, which point to a deceleration in sales and price growth in the conventional residential market.
However, the luxury segment continues to set its own pace. Among DOM3’s members are some of the leading real estate agencies in the Golden Triangle: Diana Morales Properties, Pure Living Properties, Panorama and Solvilla.
Summer is also peak season for luxury property sales
According to the International Super Prime Market Report published by Knight Frank, parent company of Diana Morales Properties, global transactions of super-luxury homes (above €8.5 million) grew by 6% in the first quarter of 2025, while in Spain prices of the most exclusive properties rose by 15% year-on-year. This trend is also evident on the Costa del Sol, where luxury real estate investment exceeded €3.2 billion in 2024 and has maintained its dynamism into 2025. In fact, according to official figures gathered by Panorama, prime housing transactions in Marbella rose by 25% in the first quarter compared with the same period last year.
Active summer in the premium segment
Traditionally, summer is also peak season for the sector, as many potential international buyers take advantage of their holidays on the Costa del Sol to visit properties. These visits often translate into transactions completed in the autumn, delivering strong year-end growth figures.
Indeed, more than half of DOM3’s members have reported increased activity directly linked to international tourism. According to data collected by DOM3 members, the most sought-after properties in the Golden Triangle remain villas and seafront homes, followed by penthouses and plots for bespoke projects. In terms of nationalities, British buyers remain prominent, followed by Swedes, Belgians, Dutch, Poles and Ukrainians, alongside emerging markets such as the United States.
Unlike the general housing market—affected by persistently high interest rates despite recent cuts, inflation, and global political instability—the luxury segment remains buoyant. High-end demand continues to come from over 40 nationalities, with clients seeking first-class residences or second homes in the well-established Golden Triangle.
According to data from the Spanish Land Registrars Association, Málaga province is the second most sought-after destination for foreign buyers of coastal property, behind only Alicante and ahead of Barcelona and the Balearic Islands. Last year, around 34% of all transactions in the province involved foreign buyers, while in Marbella’s luxury market that figure exceeds 90%.
Another noteworthy trend is the rise of permanent residences compared with holiday or seasonal homes. In this regard, Pure Living Properties highlights in its latest Market Report that around 25% of luxury property buyers on the Costa del Sol last year purchased with the intention of living there year-round.
DOM3 also notes that the construction of high-end housing continued in August, directly impacting skilled employment and driving activity in related sectors such as architecture, interior design, technology and landscaping. Although many companies adopt reduced working hours in summer to improve work–life balance and avoid the hottest periods, activity does not stop in August. The strength of the premium market is further reflected in the sales figures reported by specialist high-end real estate agencies. In this regard, Solvilla has announced several recent sales of properties priced close to €10 million.
A call for balance and planning
Although the premium segment continues to grow, DOM3 stresses the need to accompany this evolution with responsibility. The challenge is to maintain quality without falling into speculation. It is not only about building more, but about building better—promoting a sustainable urban model with quality design and respect for the environment.
The association also calls on public authorities to recognise the specific nature of this market, which operates with different dynamics to that of essential housing. The high-end sector does not compete with local demand; rather, it generates employment, attracts investment and strengthens the economy of municipalities.
DOM3 has already begun preparing its calendar of activities and events for members, starting in September with the aim of consolidating its role as a meeting point and forum for debate among leading experts in a sector that has become the main industry in the western Costa del Sol, generating more than 2,500 direct jobs and around 5,500 indirect ones.