COSTA DEL SOL PROPERTY MARKET NEWS & ANDALUCÍA UPDATES

Welcome to the latest update on the Costa del Sol property market, economic trends in Spain and Andalucía, and key news affecting buyers, sellers, and investors in 2025–2026.

COSTA DEL SOL PROPERTY PRICES CONTINUE TO RISE

The property market on the Costa del Sol and in the Málaga province remains robust, with record price increases for homes, villas, and apartments. Demand from international buyers continues to drive growth, particularly in popular coastal towns and luxury locations.

Key highlights:

● Average property prices in Málaga province reached new highs in 2025, outperforming many other regions in Spain.
● Luxury real estate in Marbella, Benahavís, and other premium areas continues to attract strong interest from European and overseas buyers.
● Smaller coastal towns such as Mijas, Benalmadena, and Fuengirola are seeing notable price rises due to lifestyle demand and limited supply.
These trends confirm that the Costa del Sol remains one of the most desirable property markets in Europe for both lifestyle buyers and investors.

LOCAL MARKET PERFORMANCE & PROPERTY DEMAND

Recent reports show sustained activity throughout the region:

● Coastal areas of the Málaga province recorded some of the fastest growing house price increases in Spain earlier this year.
● Towns like Vélez-Málaga and Marbella experienced strong quarterly growth in property values, indicating healthy buyer interest across multiple price segments.
● Coastal properties with sea views and proximity to amenities continue to perform well in searches and sales.
This broad market strength spans holiday homes, permanent residences, and investment properties.

SPANISH ECONOMY: WHAT IT MEANS FOR PROPERTY

Beyond local real estate performance, the Spanish economy overall remains resilient, which supports ongoing confidence in housing:

● Spain’s GDP growth is projected to stay positive through 2026, underpinned by strong tourism, domestic consumption, and foreign investment.
●Employment figures are improving, and interest rates have stabilised, offering a positive environment for mortgage approval and buying confidence.
● Public infrastructure investment and regional development plans continue to enhance Andalucía’s appeal.
A stable economy makes Spain — and particularly coastal Andalucía — a trusted long‑term place to live and invest.

FOREIGN BUYER INFLUENCE & MARKET DYNAMICS

International interest remains a core feature of the Costa del Sol market:

● Foreign buyers are active, especially from the UK, Ireland, Germany, Scandinavia, Belgium and the Netherlands, seeking lifestyle and retirement homes.
● Investment demand, short‑ to medium‑term rental appeal, and enhanced remote‑work trends are influencing purchasing patterns.
● While foreign demand clearly boosts activity, overall price trends also reflect wider supply constraints and quality‑property scarcity.
This blend of influences keeps the region competitive for global property buyers.

WHAT THIS MEANS FOR BUYERS, SELLERS & INVESTORS

For Buyers:

● Expect fierce competition in well‑located coastal towns and luxury districts.
● Well‑priced homes often sell quickly.
● The Costa del Sol remains a strong choice for lifestyle relocation and investment.

For Sellers:

● Demand is high for properties presented well and priced appropriately.
● Listings with professional marketing attract quicker interest and better offers.
● Investors should consider timing and seasonal traffic for optimal sale results.

For Investors:

● Stable fundamentals and continuing demand support long‑term value.
● Rental and relocation markets remain strong, especially in high‑amenity areas.

MARKET OUTLOOK & TRENDS

Looking ahead into 2026:

● Property price growth is expected to remain positive but measured, reflecting sustainable demand.
● Coastal towns with infrastructure improvements and lifestyle offerings are likely to see continued buyer interest.
● Local economic and tourism trends support healthy market activity.

Stay tuned to this page for regular updates, expert insights, and analysis on the Costa del Sol property market, broader Spanish economic news, and real‑world events that may influence buyer and seller decisions.