Costa del Sol Property Market: Where the Numbers Actually Stand in 2026

Market reports for the Costa del Sol tend to be either wildly optimistic (written by agents trying to sell you something) or wildly outdated (recycling 2023 data with a 2025 label). This is neither. Here's what the actual numbers say, sourced from INE registrar data, Idealista, and published agent market reports through late 2025.

The Big Picture: Spain's Property Market in 2025

In the trailing 12 months to June 2025, Spain recorded approximately 700,000 residential property sales — a 19.7% increase year-on-year. Monthly data shows sustained activity: 221,889 properties registered in October 2025 alone. This is a significantly stronger market than 2024, when the total was roughly 637,000 transactions.

Foreigners accounted for 19.3% of all property sales nationally. That's marginally down from 20.3% in 2024 — not because foreign interest is declining, but because domestic demand is surging even faster. In absolute terms, foreigners purchased 71,155 properties in H1 2025, up 2% on the same period last year.

Who's Buying — The Nationality Breakdown

Rank	Nationality	H1 2025 Transactions	% of Foreign Total
1	British	5,731	8.1%
2	Moroccan	5,654	7.9%
3	German	4,756	6.7%
4	Italian	4,513	6.3%
5	Romanian	4,480	6.3%
6	Dutch	4,166	5.9%
7	French	3,980	5.6%
8	Belgian	2,908	4.1%

British buyers remain the leading foreign nationality, as they have been for decades. On the Costa del Sol specifically, Brits represent roughly 22% of all foreign purchasers — by far the dominant group in Andalusia. The post-Brexit era has not materially dampened demand. What it has done is shift purchases slightly toward higher-value properties and lifestyle-driven relocations rather than speculative holiday-home buys.

One emerging trend worth noting: Polish buyers have entered the top five in several regions. US and Latin American interest is rising noticeably. And new areas of activity are appearing in less-traditional locations — Castellón, Asturias, Huelva — as the core markets get more expensive.

Costa del Sol: Price Per Square Metre by Area

Málaga province recorded 8,639 home sales in Q2 2025, with 33.3% involving foreign buyers — the highest foreign share of any Spanish province. The "Golden Triangle" of Marbella, Estepona, and Benahavís saw investments exceeding €3.2 billion in 2024, reflecting 20% growth.

Area	Avg. €/sqm (mid-2025)	YoY Change	Notes
Marbella	€5,258	~+10%	Golden Mile/Nagüeles peaks at €6,422/sqm
Benahavís	€5,205	+8–12%	La Zagaleta proximity lifts the average
Estepona	€3,955	+8–12%	77% of 2024 sales were new-builds
Nerja	€3,734	+7–9%	Eastern Costa del Sol, more affordable
Málaga city	€3,549	+13.8%	Fastest-growing urban market
Málaga province avg.	€3,842	+13.8%	All-time high (August 2025)

Every municipality on this list is at or near its all-time price high. Marbella hit €5,410/sqm in September 2025 — a record. Estepona's growth rate of 19–20% between 2024 and 2025 currently outpaces Marbella's, making it the fastest-appreciating mainstream market on the coast.

A significant data point buried in the transaction reports: in Marbella, 92% of sales in 2024 were resales. In Estepona, the picture reversed: 77% were new-builds. If you're looking at where the development money is flowing, Estepona is the answer.

Rental Yields

Area	Long-Term Gross	Holiday Rental Gross	Notes
Marbella	4–5%	6–8%	Capital appreciation stronger than yield
Estepona	5–6%	7–9%	Strong demand, competitive entry prices
Benahavís	3–4%	5–7%	Villa market; low yields, strong growth
Torremolinos	6–7%	11%+	Highest-yielding mainstream area
Fuengirola	5–7%	7–9%	Strong long-term rental demand
Benalmádena	5–7%	8–10%	Tourist hotspot

Holiday rental gross yields of 7–14% are technically achievable, but net returns are 3–6% after Spanish taxes, property management, and running costs. This is important context that most yield projections conveniently leave out. Yields are also compressing as prices rise faster than rents in prime areas.

A regulatory note: Málaga city introduced a 3-year moratorium on new tourist rental licences in 2025. Existing licence holders benefit; new investors in Málaga city can't access the short-term market. Check licence availability before buying anywhere for holiday rental purposes.

The New-Build Pipeline

Over 480–600 new developments are currently listed across the Costa del Sol. Estepona leads new-build activity. In Marbella, Swiss developer Riviesta AG is launching The Sky Marbella in 2026 (16 luxury villas plus 50 apartments), and Sierra Blanca Tower with 71 homes is underway.

The constraint: demand continues to outpace supply. Construction bottlenecks and higher build costs mean key-ready new homes are scarce. Off-plan properties commonly appreciate 5–10% from launch to completion. House prices nationally are expected to rise roughly 5.3% in 2026, with Costa del Sol premium areas likely outperforming that figure.

Mortgage Rates for Non-Residents

If you're financing from outside Spain:

• Fixed rates: 2.9–4.9% (most commonly 3.5–5%)
• Maximum LTV: 60–70% (you'll need a 30–40% deposit)
• Maximum term: 20 years (some banks offer 25)
• Minimum income: €2,000–2,500 net monthly
• Debt-to-income cap: 30–40%

Resident mortgage rates can be below 1% in some cases, so non-residents pay a significant premium. ECB rate cuts through 2024–2025 have helped bring rates down from their 2023 peak, but the gap between resident and non-resident rates remains wide.

What to Watch in 2026

The proposed 100% tax on non-EU property buyers is the big uncertainty. Announced in January 2025, submitted to Parliament in May 2025, it has not been passed and faces significant legal and political hurdles. It would exempt new-build purchases and EU/EEA citizens entirely. If it does pass, it would fundamentally change the resale market for non-EU buyers — but legal experts have called it "unlikely to survive legal scrutiny in its current form."

We covered this in detail in our analysis of the proposed 100% tax.

Beyond that: prices will continue rising (the supply-demand imbalance is structural, not cyclical), Estepona will keep closing the gap with Marbella, and East Marbella will be the area to watch for growth.