Property prices, sales, new developments and market trends compared with 2025.
The Costa del Sol property market has entered a more selective phase in 2026. The number of completed property transactions is lower than a year earlier, but this has not yet resulted in falling property prices.
In Málaga province, property prices increased significantly during 2025, while new-build homes continued to represent an important part of the market. International demand remains a major driving force, with around one in three property purchases in Málaga province made by a foreign buyer in 2025.
This means the market is better described as a market with lower transaction activity, higher prices and more selective buyers rather than a declining property market.
After a very active 2025, the Costa del Sol property market has moved into a more moderate phase in 2026. This does not mean property prices are falling. The latest market data continues to show high price levels across Málaga province.
| Market Indicator | 2025 | 2026 Development |
|---|---|---|
| Total Property Sales Registered transactions in Málaga province | 36,117 | ↓ Lower Transaction Activity The market has become more selective compared with the very strong activity seen in 2025. |
| New-Build Property New-build transactions registered in 2025 | 11,548 | → Activity Has Moderated New developments remain an important part of the market, although buyers have become more selective. |
| Resale Property Existing-home transactions registered in 2025 | 24,569 | → More Moderate Activity Transaction activity has eased, while demand remains strong in desirable locations. |
| Property Prices Average registered price growth | +12.7% | ↑ Prices Continue to Rise The latest available data continues to show strong property price levels across Málaga province. |
It is important to distinguish between the number of completed transactions and the underlying level of demand. Fewer sales can result from higher property prices, limited supply or buyers simply taking longer to choose the right property.
This is the combination currently visible on the Costa del Sol in 2026: transaction activity has slowed, while property prices remain at historically high levels.
This points more towards a selective market than a weak one. Well-located, correctly priced properties can still attract strong buyer interest, while overpriced or less desirable properties may take longer to sell.
One of the clearest trends in 2026 is that property prices remain at a high level, even though the number of completed transactions has slowed. This shows that the market is not driven by transaction volume alone, but also by limited supply, international demand and strong interest in the most desirable locations.
Property price trends on the Costa del Sol vary significantly by location. Marbella, Estepona, Benahavís, Mijas, Fuengirola and Benalmádena all include areas where the supply of attractive homes is limited compared with demand.
The high proportion of international buyers also means that the market is not dependent on local Spanish purchasing power alone. Buyers from the United Kingdom, Northern Europe and other parts of Europe continue to contribute significantly to demand on the Costa del Sol.
As a result, well-located homes, modern new developments, sea-view properties and homes close to the beach, golf courses and town centres can continue to command strong prices even during periods of lower overall transaction activity.
The Costa del Sol stands out from many other property markets in Spain because new-build homes represent a relatively large share of transactions. In Málaga province, 11,548 new-build property sales were registered in 2025, accounting for almost one third of all residential transactions.
New developments remain an important part of the Costa del Sol property market. Contemporary architecture, energy efficiency, communal facilities and the opportunity to buy during an early phase of a development continue to attract both international and domestic buyers.
Resale homes still represent the majority of the market and generally provide a wider choice of locations, property types and price points. The segment includes established apartments, townhouses, villas and renovated homes in mature residential areas.
New developments often suit buyers looking for modern design, lower maintenance requirements, energy efficiency, large terraces and communal facilities such as swimming pools, gyms and security.
Resale property can be better suited to buyers who prioritise established locations, faster completion and a wider choice of homes close to existing town centres, beaches and everyday services.
This highlights the importance of the new-development sector on the Costa del Sol compared with many other Spanish property markets.
International demand continues to play an important role in the Costa del Sol property market. In Málaga province, approximately 32.8% of residential property transactions in 2025 involved foreign buyers, underlining the area’s continued appeal to purchasers from across Europe and beyond.
Foreign demand remains one of the factors supporting the Costa del Sol property market. Lifestyle, climate, international connections and a broad selection of both resale homes and new developments continue to attract buyers from outside Spain.
More than 300 days of sunshine, Mediterranean beaches, golf courses, restaurants and year-round outdoor living continue to make the Costa del Sol attractive to international property buyers.
Málaga Airport provides direct connections with many major European cities, making the region particularly accessible for second-home owners, investors and buyers relocating to southern Spain.
Buyers can choose between established resale properties, contemporary apartments, townhouses, villas and a significant selection of new-build and off-plan developments.
The Costa del Sol has developed into one of Spain’s most international residential markets, with established foreign communities and services designed around international homeowners.
A high proportion of international buyers means that demand on the Costa del Sol is not determined solely by the Spanish domestic economy. Buyers from multiple countries contribute to demand across different price segments and locations.
This is particularly relevant in areas such as Marbella, Estepona, Benalmádena, Fuengirola and Mijas, where international buyers represent an important part of the residential market.
International demand does not mean that prices will rise indefinitely, but it helps explain why lower transaction volumes do not automatically result in falling property prices.
International demand therefore remains an important factor when assessing the Costa del Sol property market heading into 2026.
The Costa del Sol is not one single property market. Prices, property types, buyer profiles and supply vary considerably between different locations. Marbella and Benahavís are strongly influenced by the premium and luxury segments, while Mijas, Fuengirola and Benalmádena offer a broader mix of property types and price levels.
Marbella remains one of the most international and exclusive property markets on the Costa del Sol. Demand is particularly strong for modern apartments, villas, new developments and properties in established premium residential areas.
Limited supply in prime locations combined with international demand continues to support high property values.
Estepona has developed into one of the most important new-build markets on the western Costa del Sol, with a wide selection of new apartments, penthouses, townhouses and villas.
The combination of beaches, town life, new residential developments and proximity to Marbella makes Estepona attractive to both holiday-home buyers and permanent residents.
Mijas offers one of the broadest property markets on the Costa del Sol, ranging from coastal apartments to golf properties, townhouses and villas in quieter residential areas.
La Cala de Mijas, Mijas Costa and the areas surrounding the golf courses have seen significant development in modern new-build property.
Fuengirola combines beaches, urban living, rail connections and a wide selection of restaurants and everyday services. This gives the area broad appeal among both international and domestic buyers.
New developments around eastern Fuengirola and Higuerón have also raised the standard and supply of contemporary property in the area.
Benalmádena attracts buyers looking for easy access to Málaga Airport, beaches, the marina and year-round services.
The market includes established apartments, modern new-build developments and larger sea-view homes in areas such as Benalmádena Pueblo, Torrequebrada and Higuerón.
Málaga has developed into one of southern Spain’s most sought-after cities and attracts local residents, international buyers and investors.
Employment, universities, culture, beaches and international transport connections give Málaga a different demand profile from the traditional resort areas along the coast.
Benahavís is one of the most exclusive residential areas on the Costa del Sol and is particularly known for villas, gated communities, golf resorts and properties with large plots and panoramic views.
The buyer profile is typically concentrated in the upper end of the market, making the area strongly influenced by international capital and luxury demand.
Torremolinos has attracted renewed buyer interest due to its central location between Málaga and Benalmádena, direct rail connections and extensive beaches.
New residential developments and continued regeneration have made Torremolinos increasingly attractive to both holiday-home buyers and purchasers looking to live close to Málaga.
Málaga province averages provide a useful overview of the broader property market, but they do not tell the full story. A villa in Benahavís, an apartment in Fuengirola and a new-build property in Estepona appeal to different buyer groups and can therefore perform differently.
When assessing an individual property, price trends should always be considered alongside location, property type, condition, local supply and demand for that specific type of home.
A market with fewer transactions and continued high prices does not necessarily mean that buyers should wait. It does mean that assessing the individual property, location and asking price carefully has become even more important.
Average prices across the Costa del Sol or Málaga province can provide useful context, but they do not necessarily show whether an individual property is correctly priced.
Compare similar homes in the same area and consider location, condition, views, terrace size, orientation, facilities and distance to the beach, town centre and everyday services.
When buyers become more selective, some sellers may be more open to negotiation, particularly where a property has been on the market for a longer period or is priced above comparable homes.
This does not mean that every property can be purchased at a large discount. The best properties in desirable locations can still sell quickly and close to the asking price.
When buying new-build property, comparing headline prices alone is not enough. Position within the development, floor level, views, terrace size, orientation, completion date and included specifications can all have a significant impact on value.
Buyers should also review the payment schedule, bank guarantees, building licences and contract terms before committing to a reservation.
No one can predict short-term property prices with certainty. Your decision should therefore also depend on how you intend to use the property and how long you expect to own it.
A permanent home, holiday property or long-term investment should be assessed differently from a purchase where the intention is to resell within a short period.
The current Costa del Sol market cannot generally be described as a classic buyer’s market. Property prices remain high, while demand for the best homes and locations continues to be significant.
However, lower transaction activity can create a larger gap between attractive, correctly priced properties and homes where the seller’s expectations are above the current market.
For buyers, this can create opportunities if they understand local pricing, monitor the market carefully and are ready to act when the right property becomes available.
Moberg Estate helps buyers identify suitable properties, compare opportunities and understand the local market. We can assist with both resale property and new developments across the Costa del Sol.
Current market data points to a more selective Costa del Sol property market, but one that is still supported by high property values, international demand and limited supply in many of the most desirable locations.
There are currently no clear signs of a broad-based fall in property prices across the Costa del Sol. Price performance is, however, likely to vary more between locations, property types and price segments.
Transaction activity has eased following several very active years. This may continue through the remainder of 2026, particularly if high prices encourage buyers to take longer before making a decision.
International buyers are expected to remain a central part of the market, especially on the Costa del Sol where foreign purchasers account for a much larger share of transactions than across Spain as a whole.
New-build property is expected to remain important across Málaga province. Developments with strong locations, modern facilities and realistic pricing are likely to remain the most competitive.
The latest data shows why the market should not simply be described as either strongly rising or falling. Transaction volumes have eased, while property prices remain high.
This points more towards normalisation after several exceptionally active years. Buyers have become more price-conscious, and the difference between attractive, correctly priced properties and weaker listings may become increasingly visible.
For the remainder of 2026, we therefore expect a more selective market where location, quality, pricing and property type become even more important.
Property transaction volumes have become lower, but this does not mean that the overall market is falling. The latest available data continues to show high property values across Málaga province.
There are currently no clear signs of a general price decline across the entire Costa del Sol. Performance varies significantly between areas, property types and price segments.
That depends on your budget, objectives and the individual property. A more selective market can provide buyers with more time to compare options and, in some cases, negotiate, while the best properties can still experience strong demand.
On average, registered new-build prices are higher than resale prices. Modern construction standards, energy efficiency, communal facilities and the locations of many new developments all contribute to this difference.
International buyers are extremely important to the Málaga province market. In 2025, foreign buyers accounted for around one third of registered residential property purchases.
Marbella, Estepona, Benahavís, Mijas, Fuengirola and Benalmádena all attract significant international interest, although their price levels, property types and buyer profiles differ considerably.
This market analysis is based on publicly available data from official Spanish and Andalusian statistical authorities. Figures are updated as new quarterly and annual market data becomes available.
Málaga province statistics are used as the primary official indicator for the Costa del Sol market. The Costa del Sol includes multiple municipalities, so price performance can differ significantly between areas such as Marbella, Estepona, Mijas, Fuengirola and Benalmádena.
Historical property-price performance is not a guarantee of future growth. This market analysis is provided for general information and should not be considered individual investment advice.
