The property market in central Marbella versus residential developments and actual sale prices

Talking about the property market in central Marbella versus developments is not about comparing two areas: it is about analysing two different markets that evolve at different rates, with different buyer profiles and completely different price dynamics.

After decades of analysing actual transactions, registered prices and the behaviour of national and international demand, one thing is clear to me: those who do not understand this difference make ill-informed decisions.

Marbella town centre: prime location, limited supply

The centre of Marbella has always had an undeniable appeal: living within walking distance.

Many buyers tell me exactly the same thing:

“I want to be able to walk to the beach, the gym, the restaurant. I don’t want to depend on the car.”

This urban lifestyle is the centre’s great distinguishing feature.

Evolution of the centre in recent years

The centre has experienced:

• Increased international demand
• A shortage of renovated properties
• Ageing property stock
• Little new construction

This is where the first major imbalance arises: demand is strong, but the supply of quality properties is scarce.

When a well-renovated flat with good orientation and a strategic location comes onto the market, it sells. And it sells quickly.

Urbanisations: more land, more villas, more international profile

When we leave the centre and analyse developments such as Nueva Andalucía, Guadalmina, Río Real, Elviria or areas of the golden triangle (Marbella – Benahavís – Estepona), the product changes completely.

Here we find:

• Contemporary villas
• Spacious plots
• Private security
• Gated communities
• High-end new builds

And a very interesting phenomenon: there are increasingly more young buyers with high net worth.

In recent years, I have seen buyers in their early thirties purchasing villas worth five million euros, especially those linked to the technology and digital sector. This segment used to be residual; today it is structural.

Does the city centre compete with the suburbs?

No.

And this is one of the biggest misconceptions in the market.

The city centre buyer tends to be:

• More mature
• In many cases, a permanent resident
• A profile that prioritises comfort and urban living

The buyer of a development is usually:

• Younger
• With a family
• Willing to use a car
• Looking for space and privacy

Although occasionally a client may start by looking in the city centre and end up buying in Guadalmina or Nueva Andalucía, in most cases the profile is fairly clear from the outset.

They do not compete. They are parallel markets.

Actual sale prices: what is signed is not what is advertised

One of the biggest mistakes in analysing the property market in central Marbella versus the urbanisations is to focus solely on asking prices.

The reality of the market lies in the price recorded in the deed.

And there we see several things:

1. There is a difference between the advertised price and the final price.
2. Taxation has a direct impact on the price.
3. Each transfer incorporates a structural inflationary effect.

The buyer pays 7% ITP (property transfer tax). This cost is psychologically integrated into the perceived value. When that property returns to the market, the price starts from that base plus taxes.

In addition, the seller calculates their capital gain and appreciation before setting the price, which distorts many initial valuations.

The result: inflated asking prices that the market then adjusts… or they don’t sell.

What the actual market data tells us

If we analyse recent actual transactions, we observe:

• Slight decrease in the number of sales
• A clear rise in the average price

In a year-on-year comparison, the volume of transactions was slightly lower, but the total amount recorded increased. This implies a real rise in prices.

The average price rose from approximately €640,000 to €720,000.

But the most relevant factor is this:

The largest number of transactions were in the €300,000 to €500,000 range.
The second most active segment is between €500,000 and €1 million.

More than 50% of the market is in this range.

Ultra-luxury properties (over €5 million) exist and are growing, but they do not represent the bulk of the market.

The structural problem: lack of land and administrative delays

Here we see the major factor that explains the pressure on prices both in the city centre and in residential developments:

• Pending planning
• Slow development
• Prolonged licensing
• Scarce land release

In a capitalist market, when demand increases, supply should increase.

In Marbella, this does not happen at the same speed.

If supply remains rigid and demand grows—especially international demand—prices rise purely through inertia.

The future of Marbella city centre: renewal or stagnation?

The centre has enormous potential.

Structural pedestrianisation, extensive renovation of the building stock and urban modernisation could greatly increase its appeal.

Examples such as Estepona and the transformation of San Pedro show that this is possible.

But until there is clear intervention, the growth of modern products will continue to be concentrated in urban developments and emerging areas.

Conclusion: two markets, two speeds, one brand

The property market in the centre of Marbella versus developments is not a battle between areas. It is a natural segmentation.

The centre represents:

• Urban life
• Convenience
• Established location

Urban developments represent:

• Space
• Privacy
• Modern product

Both markets share something fundamental: solid international demand and an extremely powerful Marbella brand.

Marbella is a global market. And that global reach gives it superior resilience in the face of local crises.

Those who understand this structure invest better.
Those who ignore it make poor comparisons.

And in a market like Marbella, making poor comparisons can cost millions.

Article by Brice Benarroch Mennessons

26 Feb 2026

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