When looking at the Costa del Sol property market, it’s helpful to view it in a broader context. Spain has experienced record price growth, seeing property values rise by 8.4% in 2024, the highest figure since 2007. According to the official INE index (Spanish Statistical Office), prices shot up in early 2025, reaching annual growth of 12.2% in Q1 and 12.7% in Q2.
This growth hasn’t been limited to major cities. Demand has been strengthened throughout the country, driven by higher employment, improved access to credit amongst domestic buyers and consistently strong interest from international buyers.
Moving on to the coastal markets, in Tinsa’s Coastal Housing 2025 report average property prices rose by 7,2 % year on year, while second-home and holiday properties saw a much stronger rise of 12,1 %, reaching an average price of €2,970 m².
Málaga province stands out even further, recording 11.9% price growth in Q2 2025,with average values now exceeding €3,000 m². International buyers remain a defining force in the market, accounting for 38–39 % of all sales in the province.
Drilling down further, both Málaga province and the Costa del Sol ranked among Spain’s most active and expensive regions. Multiple data sources placed Málaga among the provinces with the fastest price increases, reaching 19–20 % growth at the upper end of the market. In Q2 alone, there were transactions, roughly a third of which were attributed to foreign buyers, and average prices reached €3,036 m², confirming the 11.9% annual rise.
Prime areas such as Marbella, Estepona, Benahavís and Mijas continued to attract high-net-worth international buyers, reinforcing the surge in demand for luxury property against a backdrop of limited new supply. Throughout 2025, the Costa del Sol has experienced record pricing in its prime locations, consistently strong foreign demand, and a market unable to expand supply quickly enough to keep pace.
For many years, Marbella has been considered the epitome of Mediterranean sophistication. Its property market is one of the most established in Spain, consistently fuelled by both national and international demand. Prestigious residential areas such as Nueva Andalucía, Sierra Blanca and Los Monteros, rank among the most desirable addresses in southern Europe. For those seeking a quieter yet vibrant lifestyle, San Pedro Alcántara has grown into a favourite, particularly for families and remote professionals who value a blend of tranquillity, services, and investment stability.
Estepona is undergoing an extraordinary transformation. Its newly renovated promenade, commitment to sustainable development (Malaga’s first low emission zone) and lifestyle-driven urban planning have propelled the town into one of the most promising markets on the Costa del Sol.
Between the mountains and the Mediterranean and just a few minutes’ drive from the coast, Benahavís offers a unique mix of exclusivity, nature and high-end residential developments. Located between Marbella and Estepona, known for its luxury gated communities, including La Zagaleta, one of the most prestigious in Spain, this municipality continues to attract buyers seeking privacy, security, and upscale living.
Mijas blends the traditional Andalusian charm of a hillside town with a thriving coastal lifestyle. From the whitewashed streets of Mijas Pueblo to the beaches of Mijas Costa and the increasingly sought-after La Cala de Mijas, the area appeals to both residents and investors. With strong tourism demand and a growing number of quality developments, Mijas continues to deliver attractive rental yields.
At the heart of the Costa del Sol, Fuengirola, is vibrant, modern and well-connected, and as a result, it is one of the most reliable investment choices on the Costa del Sol. Its urban lifestyle, upgraded infrastructure, and direct train link to Málaga and the airport make it a prime option for both families and tourists.
Long gone are the days when Málaga was overlooked as a gateway to the Costa del Sol. Today, it is a thriving cultural and technology hub, home to major international companies, a booming tech district, world-class cultural institutions and a new world-class marina.
Most forecasts suggest that property prices throughout Spain will continue to rise in 2026, though at a slightly more moderate pace than in 2025. BBVA Research anticipates an increase of around 7% nationally, and independent analysts broadly agree with this figure. Although new-build activity is ramping up, with construction permits rising by double digits, supply still falls short of the levels needed to rebalance the market.
Predictions for the Costa del Sol are slightly stronger. The region is expected to see further rises of 5–9% in 2026, depending on specific locations and property types. The luxury market could outperform even this, with some analysts anticipating a “historic boom” driven by new five-star hotels and branded residences, including anticipated openings from Four Seasons in Marbella (Los Monteros) and the Meliá Collection in Estepona, which typically signal long-term confidence and attract premium buyers.
Infrastructure improvements provide another layer of support. Aena has proposed €13 billion of airport investment across Spain between 2027 and 2031, with Málaga Airport slated for major upgrades worth around €1.5 billion, aimed at increasing capacity well beyond 36 million passengers. For international buyers, enhanced connectivity only adds to the attraction of the Costa del Sol as a long-term investment opportunity.
Tourism will also play a significant role. Spain welcomed 25.6 million international visitors in the first four months of 2025, a rise of 7 % year on year. Málaga has been one of the major beneficiaries, seeing a 36% increase in short-term rentals between 2022 and 2024.
The consensus among analysts is that prices on the Costa del Sol will continue to climb in 2026, broadly in the region of 5–9 %, and possibly more in premium hotspots. Nationally, a rise of about 7 %, is expected, plus taxes, furnishings, legal fees or potential changes in interest rates. Although new-build supply is increasing, it is not doing so quickly enough to resolve the imbalance between demand and available housing, especially in coastal areas – like the Costa del Sol. This means that waiting rarely results in significant savings for buyers.
In conclusion, the Costa del Sol’s 2025 performance was one of its strongest in nearly two decades, with double-digit growth across much of Málaga province, record-high rental prices and a dominant presence of international buyers. Looking ahead to 2026, further growth seems likely, helped by robust tourism, extensive infrastructure investment and continued undersupply of high-quality homes.
The most resilient markets Marbella, Estepona, Benahavís, Mijas and Málaga city are supported by steady expat demand, rising international visibility and strong rental prospects. For lifestyle buyers, the region offers long-term security and quality of life; for investors, it presents compelling opportunities for both capital appreciation and rental returns in a market where more supply does not result in lower prices.
If you would like advice about the best areas to look for the right property for sale on the Costa del Sol, contact Birgitte at [email protected] or call +34 683 391 512.
