Knight Frank’s Global Residential Signals

 Knight Frank’s latest Global Residential Signals report provides a mid-year snapshot of prime residential market trends across 20 global cities. The report points to a gradual improvement in the world’s luxury housing markets, with stronger growth expected in 2027.

For Marbella and the wider Costa del Sol, the report is especially relevant. While Marbella is not one of the 20 cities included in Knight Frank’s forecast, the wider trends identified in the report closely align with the local prime residential market: resilient international demand, limited supply in the best areas and a growing focus on location, quality and correct pricing.

The report forecasts that average prime residential price growth across 20 global cities will rise from 1.6% in 2026 to 2.2% in 2027. Growth remains modest by historical standards, but Knight Frank expects market conditions to strengthen as some weaker markets begin to stabilise and leading cities continue to record price growth.

Key findings

• Average prime residential price growth across 20 global cities is forecast to rise from 1.6% in 2026 to 2.2% in 2027.
• Seoul is forecast to be the strongest-performing city in both years, with prime prices expected to rise by 11% in 2026 and 6% in 2027.
• Tokyo remains one of the leading markets and is forecast to share second place with New York in 2027.
• Hong Kong is forecast to grow by 6.5% in 2026, supported by improving sentiment and demand for high-quality homes in prime locations.
• Milan remains Europe’s highest-ranked city throughout the forecast period.
• Madrid and Lisbon are also forecast to record positive prime price growth in both 2026 and 2027.
• Most markets surveyed expect demand, sales volumes and foreign buyer activity to hold firm or strengthen in the second half of 2026.
• No city surveyed expects a decline in international buyer interest.

A local view about Marbella and the Costa del Sol

The stronger outlook identified by Knight Frank is also reflected in the latest official data for the Golden Triangle, which includes Marbella, Estepona and Benahavís.

According to the Notaries’ Portal, achieved prices in the 12 months to 31 May 2026 rose by 7.68% in Marbella, 9.25% in Benahavís and 10.98% in Estepona. Weighted by transaction volume, this represents an estimated 9.1% average price increase across the Golden Triangle.

Average achieved prices also remain firm, at €4,665/m² in Marbella, €4,529/m² in Benahavís and €3,437/m² in Estepona.

This supports the view set out in our 2026 Marbella Real Estate Market Report: the market remains active, but buyers are more selective. Prime homes in the best locations continue to attract strong interest, while pricing, quality and micro-location now play a greater role in buyer decisions.

Why this matters for Marbella

The report suggests that the next phase of the prime residential market will be less about broad price growth and more about the strength of individual locations.

For Marbella, this is especially relevant. Areas with limited supply, strong lifestyle appeal and a proven international buyer base are likely to remain the most resilient, even as the wider market becomes more measured.

This is particularly important in established prime areas such as Marbella’s Golden Mile, Sierra Blanca, Nueva Andalucía and La Zagaleta, where high-quality homes remain in demand and available supply is limited.

Read the full report: Knight Frank Residential Forecast July 2026

Pia Arrieta, 28 Jul 2026 - Intelligence