The Costa del Sol property market in 2025 continues to strengthen, driven by international buyer demand, rising property prices, and long-term infrastructure investment across Málaga province. As Spain heads toward 2026, analysts, real estate advisors and property developers, agree on one point: the Costa del Sol remains one of Europe’s most resilient and attractive coastal real estate markets.
This article explores Costa del Sol property prices in 2025, the key market drivers, and what buyers and investors can expect in 2026.
Costa del Sol property market overview 2025
The Costa del Sol has moved into a mature growth phase rather than a speculative boom. Demand is being driven primarily by foreign buyers relocating or looking for long-term investment property, rather than short-term market speculation.
According to Euro Weekly News (November 2025), towns such as Estepona continue to experience strong commercial growth, with new businesses opening almost daily, a clear signal of economic confidence and population growth along the coast. International buyers remain dominant, particularly from the UK, Scandinavia, Benelux countries, Germany and the USA. This sustained demand has kept pressure on prices throughout 2025, especially for modern properties in well-connected coastal locations.
Costa del Sol property prices in 2025
Property prices across Málaga province have risen sharply over the past 12 months. Data from Idealista (November 2025) highlights how widespread the growth has been:
- Fuengirola reached an average price of €4,464 per square metre, representing a 19.1% increase year-on-year.
- Marbella averaged €5,485 per square metre, with prices rising 5% annually.
- Benalmádena recorded €4,060 per square metre, up 1% year-on-year.
- Benahavís continued to lead the luxury segment at €5,425 per square metre, rising 15.1% annually.
- Estepona climbed to €4,116 per square metre, increasing 13.4% year-on-year.
- Mijas averaged €3,569 per square metre, with 14.2% annual growth.
These figures confirm that Costa del Sol property prices in 2025 are rising across both premium and mid-market locations.
Why Costa del Sol property prices keep rising
The current growth cycle is supported by structural factors rather than speculation. Spain’s national property prices increased by 8.4% in 2024, followed by a 12.2% year-on-year increase in Q1 2025, according to the Spanish Statistical Office (INE). Coastal markets have significantly outperformed the national average. Tinsa reports that average property prices on the Spanish coast rose 7.2% in 2025, while second homes and holiday properties increased 12.1%, reaching an average of €2,970 per square metre.
Key drivers behind rising prices include:
- Limited supply of modern new-build in Marbella and its environs
- Consistently high demand amongst international investors
- Lifestyle-driven relocations and remote work
- High rental demand across coastal areas
Infrastructure Investment supporting long-term growth
Infrastructure remains one of the most important long-term confidence indicators for the Costa del Sol property market. Spain’s airport operator Aena has confirmed plans to invest €13 billion between 2027 and 2031 across the national aviation network, with Málaga Airport identified as a major beneficiary. Investment will be aligned with traffic growth and future demand projections, reinforcing Málaga’s position as one of Europe’s fastest-growing airport hubs. For international buyers, improved connectivity strengthens the long-term appeal of owning property on the Costa del Sol.
Costa del Sol Property Market Forecast 2026
Looking ahead, forecasts suggest continued price growth into 2026, although at a more moderate pace than the sharp rises seen in 2024 and 2025.
According to high-end real estate agents and property developers, Andara Villas, Spain’s coastal property markets are expected to record 5–9% price growth in 2026, depending on location and property type. The Costa del Sol is expected to remain Spain’s strongest luxury property market, supported by supply constraints and strong foreign demand.
Málaga province continues to rank among Spain’s top regions for price growth, with certain areas recording 19–20% year-on-year increases during 2025. Luxury hotspots such as Marbella, Benahavís, Estepona and Mijas are expected to outperform national averages due to land scarcity and international demand.
Is it better to buy property in 2026 or to wait?
For buyers considering whether to wait, rising prices suggest that delays could increase costs. A new-build property on the Costa del Sol priced at €300,000 in 2025 could increase considerably in the future. For example:
- €315,000 with 5% growth
- €321,000 with 7% growth
- €327,000 with 9% growth
These examples don’t include any additional costs such as taxes, legal fees, furnishings or financing changes. Banks including BBVA expect new-build supply to increase, but not enough to close the gap between supply and demand. As a result, slightly more choice does not necessarily mean lower prices.
What this means for investors in 2026
For property investors, the Costa del Sol remains highly attractive due to:
- Ongoing capital appreciation
- Strong rental demand
- High appeal of energy-efficient new-build properties
- Lifestyle migration supporting long-term demand
Spain’s rental market remains under pressure, with rental prices rising 11.5% nationwide in 2024, further strengthening the case for investing in coastal property.
Best areas to buy property on the Costa del Sol
Market activity and buyer demand suggest particularly strong opportunities in:
These areas combine infrastructure, lifestyle appeal and long-term growth potential.
In summary, the Costa del Sol real estate market in 2025 is characterised by strong confidence, sustained demand, and solid long-term foundations. Ongoing international buyer interest, continued infrastructure development, and limited supply suggest that 2026 is more likely to see further price increases than a slowdown in the market.
For buyers and investors alike, the Costa del Sol remains one of Europe’s most reliable coastal property markets, offering both lifestyle value and long-term investment security.
For many property developers, investors and buyers, the outlook remains very positive. Limited housing supply combined with strong international interest continues to support rising values, especially in prime coastal areas. As new developments sell rapidly and prices show no signs of easing, waiting is unlikely to result in better value. Whether your goal is lifestyle enjoyment, rental returns or long-term investment, 2026 presents favourable conditions for purchasing property on the Costa del Sol.
Market experts forecast that the price of property on the Costa del Sol will continue to rise in 2026, with estimates ranging from approximately 5% to 9%. Sought-after locations such as Marbella, Estepona and Benahavís are expected to outperform the wider market due to sustained demand. With demand, particularly for new developments and luxury homes, consistently exceeding supply, delaying a purchase could mean facing higher prices rather than better opportunities.
Yes, more budget-friendly opportunities can still be found, although prices vary significantly by location. Areas such as Mijas Costa, Fuengirola, Benalmádena and parts of Estepona generally offer better value than premium markets like Marbella or Benahavís. These locations continue to appeal to buyers by combining attractive pricing with strong lifestyle benefits and solid rental demand.
