Why More Americans Are Buying Property in Costa del Sol

In recent years, Spain’s southern coast has long attracted European second-home buyers and retirees seeking sunshine and a luxury lifestyle. However, in 2025, a new wave of buyers is making its mark on the Costa del Sol: Americans. While historically underrepresented in the Spanish property market, U.S. buyers have rapidly become one of the most influential groups in the luxury real estate segment.

According to recent data from the Notary, U.S. nationals now pay the highest average price per square metre for properties in Spain among all foreign buyers, surpassing even traditional markets like the UK, Germany, and the Netherlands. These aren’t speculative investors; they are lifestyle-driven buyers changing the top end of the real estate market.
In this article, we explore how American purchasing power and long-term goals are impacting the property market across the Costa del Sol and what this means for the region’s future.

Why Americans Are Buying Property in Spain Now?

Several factors contribute to the recent rise in American buyers.

Stronger Dollar = More Buying Power

The strong U.S. dollar relative to the euro continues to give Americans significant purchasing power in Europe. A €1 million villa in Marbella may cost far less in dollar terms today, making Spanish luxury property more attractive than ever.

Remote Work & Lifestyle Shifts

The post-pandemic world has enabled more Americans to work remotely or adopt flexible working lifestyles. Many are choosing to relocate to sunnier and more affordable destinations. Spain stands out as an attractive option with its warm climate, high-quality healthcare system, and relaxed lifestyle.

Favourable Visas & Tax Incentives

Spain’s digital nomad visa has opened the door for remote-working Americans who want to live in the country long-term. They are also exploring the Spanish property market due to low taxes compared to other European markets.

Increased American Investors on the Costa del Sol

While Americans are buying across Spain, the Costa del Sol has become a key hotspot. The number of Americans officially residing in Costa del Sol has been increasing, with a growing proportion settling in Marbella and other parts of the Costa del Sol.
While official statistics suggest Americans currently make up a smaller percentage of foreign buyers compared to dominant groups such as the British, Dutch and Germans. However, their growth rate for the past few years has been upward.
Importantly, American buyers often target higher-value homes, particularly in the luxury segment. Their presence, though numerically smaller but has quite an impact on property values in the upper tiers of the market.

What Makes the Costa del Sol So Attractive to American Buyers?

A combination of lifestyle benefits and strong financial incentives is fueling growing interest among Americans in the Costa del Sol property market:

Mediterranean Lifestyle

Known for its mild climate, beaches and outdoor activities like golf and padel, Costa del Sol is often referred to as a “Mediterranean California,”. The region offers a similar coastal, leisure-driven lifestyle at a more accessible price point.

Improved Air Connectivity

One of the key factors driving the growth of American buyers in the Costa del Sol is the improvement in air connectivity. Direct flights between Málaga and major U.S. cities like New York and Miami have made the region significantly accessible to American travellers and potential property buyers. This ease of travel has contributed to a rise in both tourism and long-term stays among U.S. citizens.

Attractive Retirement Destination

Many Americans see the Costa del Sol as an ideal place to retire. The region offers a lower cost of living than most parts of the U.S., along with high-quality, affordable healthcare and a mild, pleasant climate, which are all key attractions for retirees seeking comfort and security.

Strong Investment Potential

Investment opportunities in the Costa del Sol are another reason for American buyers. The strong tourism market provides great opportunities for consistent rental income generation. Furthermore, the ongoing increase in property values, particularly in the high-end market, indicates opportunities for long-term capital growth.

Key Locations Attracting U.S. Buyers

This region is home to some of the country’s top-performing property markets.

• Marbella: The most established luxury destination. Americans are drawn to areas like the Golden Mile and Nueva Andalucia for their exclusivity, beachside living, and excellent amenities.
• Estepona: Once considered a quieter neighbour, Estepona has emerged as a modern luxury hub with new beachfront developments and resort-style living that appeals to U.S. buyers seeking value and quality.
• Benahavís: Inland but ultra-luxurious, this municipality includes gated communities like La Zagaleta and El Madroñal, offering privacy, golf, and outdoor space, all of which resonate with American preferences.
• Málaga: The city itself is growing in popularity for buyers who want a more urban lifestyle with culture, art, and direct international connections.

Property Preferences of US Buyers

American buyers in the Costa del Sol are primarily interested in luxury villas and apartments, particularly those that offer sea views, world-class amenities, and advanced security features. There is also a growing preference for sustainable and eco-friendly homes within this buyer demographic.
Typically, U.S. buyers are focused on the higher end of the market, with many luxury villas they purchase priced above €1 million. This trend highlights their strong purchasing power and their desire for quality, comfort, and long-term investment value.

Impact of US Buyers on the Property Market

One of the most immediate impacts of the American buyer’s increase is on pricing, particularly in the luxury bracket. According to the Notary data, U.S. buyers pay an average of €3,390 per square metre, well above the foreign buyer average in Spain.
While Americans still represent a small percentage of total transactions, their above-average budgets are contributing to overall appreciation in property values, especially in prime locations like Marbella and Estepona.
The increased foreign demand has also sparked debate within Spain about housing affordability and local access to prime areas. Spain’s Prime Minister proposed the idea of additional taxes on non-EU buyers, similar to what exists in Canada or New Zealand.

To read more about these proposed taxes, read our article about Spanish Housing Reforms.

Long-Term Outlook: Will the Trend Continue?

Many experts believe the trend of American buyers investing in Costa del Sol real estate will persist, if not grow, over the next 3 to 5 years. Sustained demand and limited supply in prime locations are likely to continue driving price growth, especially in the luxury segment.
While established hotspots like Marbella will continue to dominate, emerging areas offering better value and long-term growth potential are also expected to gain traction with U.S. investors.

What Could Slow It Down

• Changes in Spanish government policy targeting foreign ownership
• A weakening dollar
• Recessionary pressure in the U.S.
• Tighter EU regulation on visas for non-Europeans

Still, the fundamentals remain strong: the Costa del Sol offers an excellent mix of lifestyle, connectivity, and value, especially for American Buyers.

Conclusion

In 2025, American buyers are expected to significantly impact the Costa del Sol’s luxury real estate market, driving changes in the market. Though fewer in number than European buyers, their high financial resources and preference for luxury properties in prime locations will further establish the region as a global destination for high-end properties and refined living.
Thinking about investing in the Costa del Sol? Get in touch with our property experts today and find your ideal luxury home.