Stability remains, but buyers are more selective
As we move into early 2026, the Spanish coastal property market remains shaped by a prolonged period of demand consistently exceeding supply. Throughout 2025, prices continued to rise across both the Costa del Sol and the Costa Blanca, driven by international demand, lifestyle-led relocation, and a persistent shortage of high-quality homes in prime locations. The key question for 2026 is therefore not whether the market remains strong, but how selective it is becoming.
The key question for buyers and sellers now is whether this momentum can continue into 2026 - or whether the market is entering a more cautious phase.
2025 market recap: two coasts, similar pressure, different price levels
Costa del Sol: high values, still moving upwards
The Costa del Sol ended 2025 with some of the highest average prices in Spain, particularly in well-established and luxury-driven municipalities. Growth has slowed slightly compared to the post-pandemic surge, but it remains robust.
End-of-2025 snapshot (approximate averages):
• Marbella: ~€5,485/m² (+9–10% year-on-year)
• Benahavís: ~€5,425/m² (+15% year-on-year)
• Estepona: ~€4,116/m² (+13% year-on-year)
• Mijas: ~€3,569/m² (+14% year-on-year)
These figures underline a market that is no longer “cheap” by any measure, yet continues to attract buyers seeking lifestyle, security, infrastructure, and long-term value. Prime, well-presented homes - especially those close to the coast or amenities - have remained highly competitive.
Costa Blanca: strong growth from a lower base
The Costa Blanca also recorded double-digit growth in 2025, but from a lower starting point, which continues to attract buyers priced out of the Costa del Sol or seeking better value per square metre.
End-of-2025 snapshot (approximate averages):
• Torrevieja: ~€2,336/m² (+14% year-on-year)
• Pilar de la Horadada: ~€3,341/m² (+15% year-on-year)
• Benidorm: ~€3,362/m² (+15% year-on-year)
• Finestrat: ~€3,365/m² (+10–11% year-on-year)
• Orihuela Costa: ~€3,150/m² (+12–13% year-on-year)
Orihuela Costa, in particular, continues to behave as a distinct micro-market compared with inland Orihuela, driven primarily by international demand, golf resorts, and modern coastal developments.
Why prices kept rising in 2025
Several factors combined to keep upward pressure on prices across both coasts:
1. Broad-based demand
Domestic Spanish buyers returned in greater numbers as financing conditions stabilised, while overseas buyers - particularly from Northern Europe - continued to see Spain as a safe lifestyle and long-term investment destination.
2. Limited quality supply
While new-build activity increased in certain corridors (especially in parts of the Costa Blanca), the reality remains that there are not enough homes in prime locations, particularly turnkey properties close to the coast, town centres, or golf.
3. Resale homes outperformed expectations
Well-presented resales often achieved stronger price growth than anticipated, as buyers prioritised “ready-to-use” homes over lengthy build or renovation timelines.
What could support prices in 2026
Looking ahead, several positive trends remain in place:
• Interest rates are no longer the major headwind they were in 2023–24, improving affordability and buyer confidence.
• Lifestyle-driven migration (semi-retirement, remote work, second homes with longer stays) remains structurally supportive of coastal demand.
• Rental pressure, particularly in long-term and mid-term markets, continues to underpin investor interest - though with greater focus on compliance and regulation.
Headwinds to watch in 2026
That said, 2026 is unlikely to be a uniform continuation of 2025. Potential brakes on growth include:
• Affordability fatigue, particularly in top-tier Costa del Sol municipalities, where buyers are increasingly selective.
• Regulatory uncertainty, especially around short-term rentals, which may dampen investor appetite in certain zones.
• Greater price dispersion, as more new-build stock comes to market in specific areas, increasing competition for older or less well-located resales.
• Tighter lending oversight, even if headline rates remain supportive.
The result is likely to be a more “two-speed” market.
What buyers should do now (early 2026 guidance)
1. Be prepared for competition on prime stock
Quality homes in Marbella, Benahavís, Estepona, Mijas, and coastal Costa Blanca hotspots still attract fast interest. Buyers should have financing, documentation, and decision-making aligned before viewing.
2. Look for negotiation where compromises exist
Opportunities are more likely where properties are:
• overpriced relative to local comparables
• poorly oriented or noisy
• burdened by high community fees
• missing licences or requiring legal clarification
3. Choose your strategy early: turnkey or project
The price gap between renovated, ready-to-move-into homes and properties requiring work continues to widen. Mixing expectations often leads to frustration.
4. Be realistic about rental assumptions
Rental demand remains strong, but success increasingly depends on choosing the right rental model for the location and regulations - not simply assuming short-term lets will be viable everywhere.
5. Base offers on micro-markets, not headlines
Municipality-wide averages hide big differences. Street, urbanisation, view, orientation, and walkability matter more than ever.
Outlook for 2026: steady, but more selective
The most likely scenario for 2026 is continued price support in prime coastal segments, rather than another broad-based surge. Well-located, well-presented homes should remain resilient on both coasts, while overpriced or compromised properties may face longer selling times and increased negotiation.
In short, the Spanish coastal market is not losing momentum - it is maturing.
