The final quarter of 2025 confirmed the Costa del Sol's position as one of Europe's most resilient and attractive property markets. Here's our analysis of the key trends and what they signal for 2026.
Transaction Volume
Property sales in Malaga province remained robust through Q4, with approximately 12,500 transactions recorded — up 4% on the same period in 2024. Foreign buyers accounted for roughly 35% of all transactions, with British, Swedish, Dutch, German, and Belgian nationals leading the international buyer mix.
Notably, American and Canadian buyer enquiries increased by 22% year-on-year, reflecting growing transatlantic interest in the Costa del Sol lifestyle and investment potential.
Price Movements
Average prices across the Costa del Sol rose 7.2% year-on-year, with significant variation by area:
- Marbella: +9.1% — prime areas like the Golden Mile and Sierra Blanca leading growth
- Estepona: +8.5% — continuing its trajectory as the coast's fastest-appreciating town
- Benahavis: +7.8% — driven by demand for villa properties with mountain views
- Fuengirola: +5.9% — strong rental demand supporting prices
- Mijas: +5.4% — steady growth with excellent value propositions
Supply Constraints
The market continues to face supply constraints, particularly in the luxury segment. New-build completions are running well below demand, and quality resale properties in prime locations attract multiple offers within days of listing. This supply-demand imbalance supports the continued price appreciation forecast for 2026.
New Build vs Resale
New-build properties command a premium of approximately 20-25% over comparable resale homes, reflecting modern design, energy efficiency, and lower maintenance costs. However, new-build inventory remains limited, with many projects selling 60-80% of units during the off-plan phase.
Looking Ahead to 2026
We expect the positive trends to continue, supported by strong international demand, limited supply, ongoing infrastructure investment (including Malaga metro extensions and road improvements), and the enduring appeal of the Costa del Sol lifestyle. Buyers who act decisively in the first half of 2026 are likely to secure the best value before the summer demand surge.
For a personalised market briefing tailored to your requirements, contact the Triple L Estates team today.
