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The Costa del Sol enters the second half of 2026 as one of Europe’s steadiest coastal property markets. Demand from international buyers has stayed strong through a period when many other markets cooled, and pricing has moved from the sharp gains of 2023u201325 into a calmer, more sustainable phase.
This report looks at where prices stand today, which towns are seeing the strongest demand, and what buyers and sellers should expect for the rest of the year.
Where the market stands in 2026
The coast closed 2025 at an average of roughly u20ac3,800 per square metre, a rise of around 13u201314% on the year before and a cumulative increase of more than 30% since 2023. Málaga province recorded close to 43,000 property sales in 2025, one of its strongest years on record, with international buyers accounting for the majority of transactions.
- Average prices up roughly 13u201314% year-on-year through 2025
- Cumulative growth of over 30% since 2023
- Around 43,000 sales recorded across Málaga province in 2025
- The gap between asking price and final sale price has narrowed to around 4u20137%
That narrowing gap is a useful signal: it means fewer speculative asking prices and more realistic pricing from the start, which is generally a sign of a healthier, more mature market rather than an overheated one.
Where demand is strongest
Demand is not spread evenly along the coast. The strongest activity in 2026 is concentrated in a handful of established, well-connected towns.
- Marbella — the coast’s benchmark market, driven by international demand for both resale and new-build in and around the golden mile and Puerto Banús
- Estepona — continued growth on the back of its old town regeneration and new coastal developments
- Fuengirola — strong demand for move-in-ready apartments close to the beach and good transport links
- Benalmu00e1dena — popular with buyers wanting a coastal lifestyle at a more accessible price point than Marbella
- Mijas Costa — sustained demand for villas and townhouses within reach of golf courses and international schools
Across all of these areas, buyers are prioritising good transport connections, energy-efficient homes and usable outdoor space over sheer size — a shift from the more speculative buying patterns seen a few years ago.
New build vs resale
Supply of new-build homes in the most sought-after zones remains tight, which continues to support prices in that segment. Resale stock has increased slightly, giving buyers more choice, but well-presented, correctly priced resale homes in good locations are still moving quickly. For sellers, correct pricing and strong presentation from day one make a measurable difference in a market where buyers are better informed and less willing to negotiate hard off an inflated asking price.
What's driving demand
- Continued relocation and second-home demand from Northern and Central Europe, including the Nordics
- A lack of new housing supply in the most established coastal towns
- Strong rental yields supporting buy-to-let purchases
- Buyers taking a longer-term view rather than chasing short-term price gains
Our forecast for the rest of 2026
Most market analysts expect the Costa del Sol to move into a more balanced phase for the remainder of the year: continued, steady price growth rather than the sharper increases of 2023u201325. That is good news for buyers who want to avoid a bidding war, and it still supports healthy returns for sellers and investors with realistic expectations.
What this means if you're buying or selling now
- Buyers: well-priced, move-in-ready homes in established towns are still selling fast — be ready to act when the right property appears
- Sellers: accurate pricing from the outset now outperforms an inflated asking price and a later reduction
- Investors: rental demand remains strong along the coast, particularly in towns with year-round appeal
If you're weighing up a purchase, our complete guide to buying property in Spain as a foreigner walks through the process step by step, or you can browse our current properties for sale on the Costa del Sol directly.