To understand where the Costa del Sol property market is heading, it’s important to look at the wider Spanish real estate landscape. Spain has been experiencing one of its strongest growth cycles in recent history. In 2024, national property prices rose by 8.4%, the highest annual increase since 2007. This momentum continued in early 2025, with official data from Spain’s National Statistics Institute (INE) showing year-on-year growth of 12.2% in Q1 and 12.7% in Q2.
This surge has not been confined to major cities alone. Demand has strengthened across the country, supported by rising employment, improved mortgage availability for Spanish buyers and sustained interest from overseas purchasers, who continue to see Spain as a stable and attractive long-term investment destination.
Coastal markets outperform
Spain’s coastal regions have been particularly resilient. According to Tinsa’s Coastal Housing 2025 report, average coastal property prices increased by 7.2% year on year. The strongest performance came from second-home and holiday properties, which jumped by 12.1%, reaching an average of €2,970 per square metre, underlining the enduring appeal of lifestyle-driven real estate.
Property on the Costa del Sol in 2025
Within this national picture, Málaga province clearly stands out. By Q2 2025, prices were up 11.9% year on year, with average values now exceeding €3,000 per square metre. International buyers continue to play a central role, representing approximately 38–39% of all property purchases within the province.
Looking deeper, Málaga and the Costa del Sol ranked among Spain’s most active and most expensive markets. Several data sources identified Málaga as one of the fastest-growing provinces, with price increases reaching as high as 19–20% at the top end of the market. In Q2 alone, 8,639 property transactions were recorded, with around one third involving foreign buyers. Average prices reached €3,036 per square metre, reinforcing the area’s strong annual growth.
Prime destinations such as Marbella, Estepona, Benahavís and Mijas continued to attract affluent international investors throughout 2025. Demand for luxury homes remained exceptionally strong, while new supply struggled to keep up. As a result, many prime areas on the Costa del Sol reached record price levels, driven by sustained overseas interest and limited development capacity.
2026 market forecast
Based on transaction data, Spanish property prices are expected to continue rising in 2026, although at a more measured rate than in 2025. BBVA Research forecasts national growth of around 7%, a figure broadly supported by independent experts. While construction activity is increasing, with building permits up by double digits, new supply still falls short of the quantity required to balance the market.
On the Costa del Sol, forecasts are slightly more optimistic. Price increases of between 5% and 9% are expected in 2026, depending on location and the type of property. Costa del Sol luxury property as a sector, looks like it may outperform even these projections, with some analysts predicting a standout year driven by high-profile developments such as new five-star hotels and branded residences. Anticipated openings such as the Meliá Collection in Estepona, which are widely seen as strong signals of long-term confidence in the region.
Infrastructure investment further strengthens the outlook. Aena has proposed €13 billion in airport upgrades across Spain between 2027 and 2031, with Málaga Airport set to receive around €1.5 billion. These improvements aim to increase capacity well beyond 36 million passengers, enhancing international accessibility and reinforcing the Costa del Sol’s appeal to overseas buyers.
Tourism remains another key driver. Spain welcomed 25.6 million international visitors in the first four months of 2025, a 7% year-on-year increase. Málaga has benefited significantly, with short-term rental properties increasing by 36% between 2022 and 2024.
What this means for real estate on the Costa del Sol in 2026
The general consensus is that Costa del Sol property prices will continue rising in 2026, typically by 5–9%, with higher growth possible in prime locations. Nationally, a rise of around 7% is expected, in addition to associated purchase costs such as taxes, legal fees and furnishings. Although more new developments are coming to market, they are unlikely to ease the supply-demand imbalance in sought-after coastal areas. Historically, waiting rarely leads to lower prices.
The Costa del Sol delivered one of its strongest performances in almost 20 years during 2025, marked by double-digit growth across much of Málaga province, record rental levels and sustained international demand. Looking ahead, 2026 appears set to continue this upward trajectory, supported by tourism growth, major infrastructure projects and an ongoing shortage of high-quality housing.
Marbella, Estepona, Benahavís, Mijas and Málaga city remain among the region’s most resilient and attractive markets, underpinned by international visibility, strong expat communities and excellent rental prospects. Whether you are buying for lifestyle, long-term security or investment returns, the Costa del Sol continues to offer a compelling opportunity in a market where demand consistently outpaces supply.
Key areas to watch in 2026
- Exclusive draw of Benahavís property
Nestled between the mountains and the Mediterranean, Benahavís combines natural beauty with exclusivity. Just minutes from the coast and strategically located between Marbella and Estepona, it is known for its secure, luxury developments, including La Zagaleta, one of Spain’s most exclusive residential communities. Buyers here are drawn by privacy, security and premium living.
- The evolution of Estepona’s real estate market
Estepona has undergone a remarkable evolution. A regenerated seafront, forward-thinking urban planning and a strong focus on sustainability including Málaga province’s first low-emission zone, have transformed the municipality into one of the Costa del Sol’s most dynamic and promising property markets. Making it a savvy investment to buy property in Estepona, whether a private villa on the New Golden Mile, charming townhouse, new penthouse or a beachfront property for sale, Estepona offers buyers a superb lifestyle at value for money prices.
- Fuengirola’s broad appeal
Centrally located and exceptionally well connected, Fuengirola is one of the Costa del Sol’s most dependable investment locations. Its lively urban atmosphere, improved infrastructure and direct train connection to Málaga city and the airport make it highly appealing to families, residents and holidaymakers alike.
- Málaga City’s cultural and technical hub
Málaga has firmly established itself as far more than a gateway to the Costa del Sol. Today, it is a vibrant cultural and technological centre, home to international companies, a rapidly expanding tech sector, renowned museums and a new world-class marina. The city’s transformation has significantly boosted its residential appeal.
- Consistent high demand for Marbella property
Marbella has long been synonymous with refined Mediterranean living. Its property market is among the most mature and consistently in demand in Spain. Sought-after neighbourhoods such as Nueva Andalucía, Sierra Blanca and Los Monteros remain some of southern Europe’s most prestigious residential addresses. Meanwhile, San Pedro Alcántara has gained popularity among families and remote workers looking for a sunshine lifestyle with strong amenities and solid long-term value.
- Unique mix of property in Mijas
Mijas offers a unique mix of traditional Andalusian character and modern coastal appeal. From the picturesque streets of Mijas Pueblo to the beaches of Mijas Costa and the increasingly popular La Cala de Mijas, the area attracts both lifestyle buyers and investors. Strong tourism demand and a growing supply of quality developments continue to support healthy rental returns.
In conclusion, with sustained demand, limited supply and strong long-term fundamentals, Costa del Sol real estate continues to rank among the most desirable property markets in Spain. From luxury villas in Marbella and Benahavís to beachfront apartments and new apartments in Estepona, Mijas and Málaga, the region offers exceptional opportunities for both lifestyle buyers and property investors.
If you have decided to buy property in Estepona or the wider Costa del Sol, whether as a permanent residence, second home or investment, professional local advice is essential.
Contact Top Properties Estepona’s agents for expert guidance, access to the best properties for sale on the Costa del Sol, including off-market opportunities and essential support throughout the buying process. Get in touch with our local experts at Top Properties Estepona today on +34 633 538 813 or email info@toppropertiesestepona.com.
