Andalusia, a new hotspot for real estate investment in Spain
Last Updated on 16 June 2025 by Urbanitae
According to BBVA Research’s first-half report of the year, “Andalusia Situation 2025,” Andalusia is becoming a real estate investment hotspot, with growth outpacing the rest of Spain. The report estimates that Andalusia’s GDP could grow by 3% this year, compared to 2.8% nationally. In this context, the President of the Andalusian Regional Government, Juanma Moreno, has made a call for global investment in the region. The aim is not only to attract domestic investors but also to increasingly draw foreign investment.
Andalusia attracted €837 million in direct foreign capital, a 41% increase compared to 2023, and closed the best six-year period in the historical series, with a cumulative investment of over €5 billion. According to government data, foreign direct investment generates 165,435 jobs in the region, with over 3,000 companies operating in Andalusia and forecasts indicating continued, progressive growth.
This trend gave rise to “Invest in Andalusia,” a proposal by the Andalusian Government to facilitate the inflow of foreign investment into the region. It offers a comprehensive portfolio of services to investors, starting with a promotion strategy targeting priority countries such as the U.S., France, Denmark, and the United Kingdom—nations that invest the most in the region, mainly in construction, renewable energy, and financial products.
The Andalusian Government is committed not only to attracting foreign investment but also to retaining it. As of 2024, divestments dropped by 21% compared to 2023, totaling just €68 million—starkly contrasting with national figures. This indicates that foreign investors tend to stay once they arrive in Andalusia. Moreover, according to the Andalusia Business Climate Barometer, 87% of foreign companies in the region plan to increase or maintain their investment in 2025; 84% expect to increase revenue; 62% forecast higher exports; and 89% anticipate job growth.
In this way, Andalusia seeks to gradually reach the level of investment and capital attraction seen in Spain’s most developed regions—currently still far off according to statistics. As a result, this growth has driven the development of Andalusia’s major cities and, with it, a surge in real estate investment in the region.
Current market overview: Andalusia as a real estate investment hub
According to the Fotocasa Real Estate Index, the housing market in Andalusia is one of the most active and attractive in Spain. Both purchase and rental prices remain below the national average. Specifically, as noted by the National Statistics Institute (INE), Málaga has the highest housing prices in Andalusia at €4,069 per square meter. Further behind are cities such as Granada, with a price of €2,728 per square meter, followed by Cádiz (€2,097), Seville (€1,862), Huelva (€1,585), Córdoba (€1,447), Almería (€1,427), and Jaén, at €998.
So far this year, property prices have risen quarterly in seven of the eight provinces analyzed: Málaga (6.1%), Granada (4.6%), Cádiz (3.9%), Almería (2.7%), Huelva (2.5%), Córdoba (1.7%), and Seville (0.4%). Only in Jaén did prices fall, by 0.4%.
These figures show that the housing market, both for sale and rent, varies significantly across different provinces and cities in Andalusia. Buying or renting a property in Málaga—one of the most sought-after locations in Spain where prices are currently soaring—is very different from doing so in areas like Jaén, Córdoba, or Huelva.
As such, the Costa del Sol continues to be one of the most attractive investment hotspots in all of Andalusia. It remains the top destination for foreign real estate investors thanks to its sustained economic growth and strong development in key sectors such as tourism, commerce, services, and the increasing arrival of tech companies.
In fact, it is the third most popular Spanish destination for foreign real estate investors, behind Alicante and the Balearic Islands, according to the College of Registrars. In the fourth quarter of 2024, 32.35% of all registered home sales there were completed by international buyers.
Meanwhile, Marbella stands out as the most expensive non-capital municipality in Andalusia and, alongside Málaga, one of the most attractive destinations for luxury real estate investment, according to international agency Barnes and its Global Property Handbook 2025. The average housing price there is €1,955 per square meter.
Trailing behind this province, Seville is becoming an increasingly popular destination for investors due to its rise in tourism, historical heritage, and the hosting of cultural events.
Urbanitae’s strong bet on Andalusia
The combination of high returns and a favorable economic environment has made Andalusia a focal point in Urbanitae’s real estate investment strategy—especially in the prime and luxury housing segments, due to their significant profit potential. Since its launch in 2017, the real estate crowdfunding platform has allocated nearly €75 million to projects in this segment in the region.
Urbanitae’s favorite investment destination in Andalusia coincides with that of most investors: Málaga, where we have launched 26 luxury projects, particularly in Marbella, Benahavís, Estepona, and Málaga city. Currently, two more projects are active in the region, specifically in San Roque (Cádiz) and Lepe (Huelva).
These 28 projects in Andalusia will enable the construction of 398 high-end and luxury homes, involving 32,000 investors, with an average of over 1,100 investors per project.
