Marbella’s luxury residential market in 2026: local insights from Knight Frank’s Residence Report

Knight Frank’s The Residence Report 2026/27 examines the changing global landscape for luxury residential development. Its research focuses on the world’s fastest-growing branded residence markets, the wealth and mobility trends driving demand, the growing role of wellness and hospitality, and how expectations around luxury living are evolving.

Marbella features naturally within several of these themes.

Knight Frank identifies Marbella and the Costa del Sol among the lifestyle-led markets attracting residential development and internationally mobile buyers. The report also finds that, at the upper end of the market, Marbella is now achieving residential prices comparable with Madrid.

For DM Properties, these global findings are particularly relevant when viewed alongside what we are seeing locally and the latest official transaction data for Marbella, Benahavís and Estepona.

The picture is one of a mature international market entering a more balanced phase: transaction volumes have moderated, prices remain above last year’s levels, branded residential development is expanding and buyers are becoming increasingly selective.

Marbella is part of the shift towards lifestyle-led residential markets

One of the clearest trends identified by Knight Frank is the movement of luxury residential development beyond the traditional global cities.

In 2016, 38% of branded residence schemes were located outside major cities. By 2025 that proportion had risen to 55%, with further growth expected as development expands into coastal, island, mountain and resort destinations.

Knight Frank specifically identifies Marbella and the Costa del Sol as part of this shift.

Marbella differs, however, from many newer resort destinations. It has been an established international residential market for decades.

The area combines beaches and golf with international schools, healthcare, restaurants, sports facilities and year-round services. Málaga Airport also provides extensive European connectivity.

For buyers who divide their time between several countries, these factors increasingly matter.

Knight Frank reports that ultra-high-net-worth individuals now own an average of 3.8 homes, compared with 2.9 less than a decade ago. Its wider analysis points to a more mobile wealthy population whose residential decisions increasingly combine lifestyle, business connectivity, security and ease of ownership.

That international profile is clearly visible in the local data. According to the latest figures analysed by DM Properties from the Notary Statistics Portal, foreign buyers accounted for approximately 61% of residential purchases in Marbella, 68% in Estepona and 85% in Benahavís.

In Marbella, British buyers remain the largest foreign group, followed by Swedish, Dutch, Polish and German purchasers. Benahavís has an even higher proportion of international buyers, while Estepona continues to attract a broad mix of nationalities.

Branded residences are becoming more visible across Marbella and the Costa del Sol

Branded residences form an important part of The Residence Report.

Knight Frank’s 2026 Global Branded Residence Survey covers almost 1,800 live and pipeline schemes across more than 90 countries and more than 200 brands. The number of schemes has almost tripled over the past decade and is expected to continue growing through 2031.

Spain stands out within Europe. Knight Frank ranks the country among the world’s leading markets for future branded residential development and identifies Marbella and the Costa del Sol as important lifestyle-led destinations.

The trend is already highly visible locally.

Across Marbella and its surrounding areas, completed, under-construction and planned residential developments are associated with brands including Fendi Casa, Dolce & Gabbana, Karl Lagerfeld, Armani/Casa, Bentley Home, Automobili Lamborghini, Four Seasons, Waldorf Astoria, Angsana by Banyan Group and Destination by Hyatt.

Further west along the Costa del Sol, the branded residential offer includes projects associated with Missoni, St. Regis and Fairmont.

What makes this particularly relevant is the diversity of brands involved.

For a closer look at how this segment is developing locally, read our article of branded residences in the Marbella market.

Knight Frank notes that hotel operators still dominate the global branded residence sector, but fashion, automotive and lifestyle brands are taking a growing share. Non-hotel brands are expected to approach 40% of supply by 2028.

Marbella already reflects that change.

Hotel and hospitality brands sit alongside fashion, design and automotive names, giving the local market a broader branded residential mix than might be expected in a relatively compact geographical area.

For international owners, the appeal can go beyond the name itself. Some branded developments combine property management, security, hospitality services and amenities in a format designed to make ownership easier for buyers who spend only part of the year in Spain.

Marbella’s highest residential prices now compare with Madrid

One of the most significant references to Marbella in Knight Frank’s report concerns pricing.

Knight Frank places Marbella’s luxury residential range at approximately US$1,600 to US$2,700 per sq ft, compared with US$2,000 to US$2,700 per sq ft in Madrid.

At the upper end, therefore, Marbella now broadly matches the Spanish capital.

This comparison needs context.

It does not mean that average residential prices in Marbella are comparable with the highest prices quoted in Knight Frank’s table. The report is describing the upper end of the luxury market, where exceptional new developments, branded schemes and individual prime properties can achieve values well above municipal averages.

Official transaction data shows the distinction clearly.

Between January and June 2026, the average price of completed residential transactions across Marbella, Benahavís and Estepona was €4,366/m², 15.5% higher than during the same period in 2025.

Average prices increased year on year in all three municipalities:

• Marbella: +13.5%
• Estepona: +19.2%
• Benahavís: +19.6%

These figures cover the full residential market and should not be compared directly with Knight Frank’s top-end luxury range. They do, however, illustrate how far the highest-priced segment of Marbella has moved above the wider market.

That upper tier is concentrated in a limited number of locations and properties where factors such as plot, views, condition, privacy, architecture and scarcity can have a substantial impact on value.

Fewer transactions have not led to lower average prices

The latest local figures also provide useful context for Knight Frank’s wider analysis of wealthy buyer behaviour.

Between January and June 2026, 3,422 homes were sold across Marbella, Benahavís and Estepona, 20.7% fewer than during the same period in 2025.

Despite the fall in sales volume, the average transaction price across the three municipalities increased by 15.5%.

Activity also improved as the first half progressed. Transactions rose by 9.7% between Q1 and Q2.

The figures point to a market that is becoming more balanced rather than one in which demand has simply disappeared.

After several exceptional years, buyers are taking more time to assess properties and compare alternatives.

Location, condition, architecture and price all matter more when there is greater choice.

This is also consistent with the direction identified in the DM Properties Marbella Real Estate Market Report 2026, which described a transition towards a more mature market in which correctly priced, well-located properties continue to attract demand while buyers become more selective.

Marbella, Benahavís and Estepona are developing differently

Looking at the three municipalities together can obscure some important differences.

Marbella remains a mature and relatively supply-constrained market, with a large proportion of transactions taking place in the resale sector.

Over the latest 12-month period, new-build purchases represented approximately 11% of transactions in Marbella and 7% in Benahavís, compared with around 25% in Estepona.

That distinction matters when considering future residential development.

Estepona has greater exposure to new-build supply, while much of Marbella and Benahavís derives its value from established residential areas where suitable land is more limited.

This scarcity is particularly relevant at the upper end of the market.

In Marbella, areas such as the Golden Mile, Sierra Blanca, Nueva Andalucía and Los Monteros combine mature surroundings with limited availability of comparable sites. DM Properties' 2026 market analysis also notes that exceptional beachfront properties on the Golden Mile have achieved values around €30,000/m² in recent years.

High specification is becoming less of a differentiator

One of the more important arguments in The Residence Report is that the definition of luxury is changing.

Features such as private gyms, spas, cinemas, wine cellars, swimming pools and concierge services remain desirable, but they are increasingly common in high-end residential development.

Knight Frank argues that specification alone is therefore becoming less effective as a way of distinguishing one property from another.

Instead, value is increasingly moving towards qualities that are harder to reproduce: place, provenance, privacy, landscape, architecture, service and human judgement.

This has clear relevance for Marbella.

The number of newly built homes with high specifications has increased significantly. Buyers can now compare properties offering very similar combinations of wellness facilities, entertainment areas and home technology.

What is harder to replicate is a frontline golf position, protected sea views, a mature garden, a large plot in an established low-density area or architecture that responds particularly well to its setting.

As technical specifications improve across the market, these less reproducible qualities become more important.

Wellness is moving beyond the private spa

Knight Frank also identifies wellness as one of the main areas changing luxury residential development.

Its report describes a shift from wellness as an amenity to wellness as part of the infrastructure of the home.

The focus increasingly includes natural light, air and water quality, materials, planting, movement and the relationship between architecture and everyday life, rather than simply adding a gym or spa.

Marbella is naturally well positioned for this trend.

Private gyms, indoor pools, saunas, hammams and treatment spaces are now common in many newly built homes at the upper end of the market.

But some of the most enduring qualities are more fundamental: orientation, natural light, outdoor space and an easy relationship between the interior of the home, terraces, garden and surrounding landscape.

In Marbella’s climate, that indoor-outdoor relationship is an important part of how a home is used for much of the year.

What does Knight Frank’s Residence Report tell us about Marbella?

The global trends identified by Knight Frank are already visible in the local market.

Marbella is benefiting from the growing appeal of established lifestyle destinations. International buyers remain central to demand. Branded residential development is expanding, while the highest-priced properties are achieving values associated with major European markets.

At the same time, the local data points to a more selective phase.

Sales volumes in the first half of 2026 were below the previous year, while average prices remained higher. Buyers still have the capacity and appetite to purchase, but they are assessing value more carefully.

That makes the distinction between specification and scarcity increasingly important.

A global brand, extensive amenities and high-quality finishes can all contribute to a property's appeal. But location, privacy, views, land, established surroundings and good architecture remain much harder to reproduce.

For a mature market such as Marbella, those attributes may become even more important as luxury residential development continues to evolve.

About this analysis

This article combines three sources of market insight:

Knight Frank’s global research: The Residence Report 2026/27, including its Global Branded Residence Survey, research into global wealth and mobility, luxury pricing and trends in wellness and lifestyle-led residential development.

Official residential transaction data: figures from the Notary Statistics Portal and the General Council of Notaries covering Marbella, Benahavís and Estepona, analysed by DM Properties | Knight Frank.

Local market analysis: DM Properties’ ongoing research and more than three decades of experience in Marbella’s prime residential market. The firm's 2026 Market Report combines official transaction data with local market intelligence and Knight Frank's international research.

Average transaction prices can vary according to the type, size, condition and location of the properties sold during each period and should not be interpreted as an estimate of the change in value of an individual home.

Pia Arrieta, 15 Sep 2026 - Intelligence