Spanish Markets Report – Aug 2026 Part 3 – Local Property Commentary

PART 3 – LOCAL PROPERTY COMMENTARY

Sotogrande and Alcaidesa

• The luxury market remains exceptionally resilient.
• Sotogrande continues to benefit from international wealth, golf, marina facilities and a mature luxury reputation. Alcaidesa increasingly benefits from offering similar lifestyle characteristics at lower entry prices.
• Apartments continue to perform strongly, but villas remain the primary driver of capital appreciation.
• Rental influences exist but values remain fundamentally driven by owner-occupation and lifestyle demand.
• The opening of the Gibraltar border is beginning to have an increasing influence as the wealth of Gibraltar seeks to avoid the claustrophobia and high prices that can occur in a restricted area.

Manilva (Including Sabinillas)

• One of the principal beneficiaries of rising prices elsewhere, (if rising values and population can be universally looked upon as a benefit!)
• Many buyers priced out of Estepona are discovering Manilva.
• Capital growth potential remains attractive because prices remain comparatively accessible.
• Apartments dominate transactions but villas offer interesting value opportunities.

Estepona

• The ‘gentrification’ success story of the Western Costa del Sol.
• Before the improvement of the coastal highway and especial the building of the tunnel through San Pedro, many thought of anything West of there as being closer to the ‘edge of the flat earth’ and didn’t know or travel there.
• Large-scale regeneration, infrastructure improvement and sustained international
• demand continue supporting values, combined with its marketing incorporation into the ‘Golden Triangle’ of Marbella, Benahavis and Estepona and acceptance of the ‘New Golden Mile’.
• Development activity remains substantial and demand continues absorbing stock rapidly.
• Capital values continue to outperform many competing markets.

Benahavís

Golf Club El Higueral, Benahavis, Andalusia, Spain

• Luxury, privacy and golf.
• Includes the traditional ‘old village’ where property movement can be slower, up through the market sectors in areas such as Los Arqueros and La Quinta, to the physical and financial heights of El Madroñal and Zagaleta.
• The market is increasingly dominated by affluent international buyers seeking larger plots, security and exclusivity.
• Villas continue to outperform apartments in value growth although, as elsewhere, apartments are the major development style.
• Rental considerations are secondary in the higher value areas.

Marbella

• The town retains its prestige and though the market may be restricted and expensive buyers continue to arrive.
• The best properties remain difficult to replace and supply remains constrained.
• The history of planning ‘difficulties’ slowed some of the excesses in previous years, driving construction to neighbouring municipalities, but now offering some spaces as the planning situation becomes more open.
• Prime villas and premium apartments continue attracting international capital.
• Marbella increasingly resembles a global luxury brand rather than a conventional property market.

Mijas

• Always looked upon as a lesser location than its expensive neighbour, buyers have found its relative affordability and accessibility attractive.
• Mijas Costa is active in both new-build and resale sectors, whilst inland locations continue attracting lifestyle buyers.
• Steady growth rather than spectacular growth appears the likely direction.

Fuengirola

• One of the major beneficiaries of existing railway infrastructure.
  Accessibility matters increasingly.
• Apartments dominate the market and continue to attract investors, retirees and relocators.
• Capital growth remains healthy and supported by liquidity.
• Developed for tourism earlier than the municipalities to the west, it has an established urban feel and tends towards a lower level of the market.

Benalmádena

• Like Fuengirola, it’s largely a mature market with broad appeal.
• The railway connection, marina and established tourism infrastructure continue supporting demand.
• Apartments remain dominant, although hillside villas continue appreciating steadily.

Málaga City

Malaga in Andalusia, Spain

• Perhaps Spain’s most successful urban regeneration story.
• Technology, education, culture, tourism and international investment continue transforming the city.
• Strong employment growth supports owner-occupier demand, something many coastal resorts cannot always claim.
• However, affordability and availability of accommodation for residents are increasing concerns.
• The city has just announced a 3 year moratorium of the granting of ‘tourist’ licences.
• Capital growth prospects remain among the strongest in Spain, with the moratorium increasing the attractiveness and exclusivity of existing tourist compliant property.

Eastern Costa del Sol

• Away from the ‘suburbs’ of Málaga, it offers value compared with Marbella and Estepona.
• Nerja, Torrox and Torre del Mar continue attracting buyers seeking a more traditional coastal lifestyle.
• The area benefits from affordability, lower density and strong lifestyle appeal.
• Capital growth remains positive, particularly in premium coastal locations.

Costa Blanca South

• Value remains its greatest strength.
• British, Irish, Dutch and Belgian buyers continue viewing the region as one of the most affordable coastal options.
• Capital values continue to rise, supported by international demand, albeit from a lower base than the Costa del Sol.

Costa Blanca North

• The international market remains exceptionally strong.
• Jávea, Moraira, Altea and Denia continue attracting lifestyle buyers and higher-value purchasers.
• Supply remains constrained and values continue increasing steadily.

Mallorca

• The market has become more selective but remains one of Europe’s premier second-home destinations.
• Prices continue rising, albeit at a slower pace than previously.
• International buyers remain the principal driver.
• The challenge increasingly becomes availability and affordability for local residents who are protesting against their situation, rather than attracting buyers.

Ibiza

Historic Dalt Vila and Ibiza Cathedral under a clear blue sky

• Arguably Spain’s most exclusive residential market, with ownership being an international fashion and social statement.
• Supply remains extremely limited.
• Price growth has become more moderate, not because buyers have disappeared, but because values have already increased dramatically.
• Premium villas remain the island’s most sought-after asset.

Barcelona

• The residential market remains influenced by regulatory intervention and uncertainty surrounding rental controls.
• International demand remains present, particularly from higher-income overseas purchasers, but local affordability remains challenging.
• The luxury segment remains healthy whilst the mainstream market appears more cautious.

Canary Islands

• A market increasingly influenced by tourist rental regulation.
• Premium property continues to attract international demand, particularly from Northern Europeans seeking year-round climate advantages.
• However, regulatory uncertainty surrounding holiday rentals appears to be encouraging greater buyer caution than exists on parts of the mainland.

Final Thoughts

• Spain does not have a demand problem; it has a supply, infrastructure and increasingly an affordability problem.
• Where there does appear to be supply, especially in country areas, many properties have planning and utility irregularities.
• The Costas, Islands and major cities continue attracting people, businesses, tourists and investment capital, often in excess of their capacity to function with them.
• Whether roads, railways, utilities, housing delivery and, the most important, political policy, can keep pace with that demand remains the more important question for the years ahead.

Statistics

We continue to keep an essential record of the average difference between Asking Price and Actual Selling price, where we have been supplied with that information from reliable sources. These are often from clients for whom we have carried out a building survey/home inspection, and they inform us what price they are actually paying for the property after receiving our report. We can use that information to improve the accuracy of our current market valuations.

Average Difference Between Asking Price and Actual Selling Price.

January to June 2025 – 8.76% We had fewer records to work with, but noted that the first quarter, January to March was a substantially bigger difference than the 2nd quarter.
July to December 2025 – 7.62% A slight fall since the last half year, most probably caused by the shortage of property lessening the negotiating strength of the buyers. It must be remembered that this is an average of all the Regions of Spain in which we are active and varies from -11% to only – 1.25%, with one registering as having paid the asking price.
January to July 2026 – 9.96% Unfortunately, we have received fewer reliable responses and so consider that this number is high for general use. However, it does support the comments from various sources indicating that there is more resistance from buyers to ever increasing prices. We have noted more emails, etc, from agents indicating reductions in asking prices.

Changes in the last 6 months – in Multi-Listing Site – Resales Online

Comparison of figures are restricted to one region, and we have chosen Costa del Sol, as being the most active on the website. January 2026 figures in brackets.

We found on 14th August 2026 that there were –

1. 12,940 properties for sale at 100,000€ euro or more. An increase of 10.6% on our last recorded analysis (11,702) in January 2026.
2. 4,240, 32.8% were priced at 1,000,000€ euro or more. That’s 11.3% more in numbers than 6 months before (3,810)
3. 550, 4.3% of the total of 100,000+€ euro, were identified as representing new developments, a significant increase in number and nearly 16.3% more than the (473) last time,
4. 356, 8.4% of the total of new developments were priced at more than 1M€ euro, an increase in number (298) and 19.5% more than last time.
5. 1,432, 11.1% of the 100,000+€ euro properties are found to have a discount of -10% or more since first listing, which is more in number but less in % 8.3% than the previous analysis (1,322) (10%)
6. Those increasing their price by +10% or more was 693, 5.4%, which is slightly lower than the previous period. (733) (7%), continuing the downward trend.
7. 482, 11.4% of the 1M+€ euro properties were found to have reduced their prices by 10% or more, being marginally less in number and % than previously (491 12.5%), again continuing a trend.
8. 344, 8.1% of the 1M+€ euro properties have increased their price by +10% or more, being marginally less in number and but a greater % less than previously (356)
9. 1,577 were found to be available for long-term rental, an increase of 3.1% from (1,529), confirming that restricting tourist rentals is not having much effect on the long-term market.
10. 85, 5.4% being available at 1,200€ euro per month or less, a reduction from the (97, 6.3%) last period reflecting the general increase in rents.
11. 1,033, 65.5% were available at 2,500+€ euro/month, an increase in numbers and %. (907, 59%) to the first half of the year.
12. 415, 26.3% at 5,000+€ euro/month, a higher number and % since January. (348, 22.8%)
13. 1,221 properties are available for short-term rental in this holiday season, more 5.2% than January. (1,161 and 11.4%). Being in the middle of the tourist season the numbers could change daily.
14. Only 161, 13.2% of these properties are shown to have a short-term licence number, similar to January. (138 11.9%). However, under EU pressure and Spain’s own Supreme Court ruling, the Madrid based licencing has been declared an illegal duplication and so only licencing in Andalucia is required now. It’s not known how the licence number comments are recorded.

Analysis

• The trends in Resales Online’s stats are continued compared to the second half of 2025, showing change in numbers and % indicating a market still drifting upwards in number of properties available in all ranges and the values of these increasing too.
• This is just one listing agency, and new ones are starting up, so there could be differences if all listing agencies were included.
• Idealista shows 27,402 properties for sale in all Costa del Sol between the west border of Málaga city to the edge of Cádiz province, and 6,234 to Rent.

Nature has performed Carbon Capture for eons,
safely burying surplus carbon as oil and gas.
But we have released much of that in a few decades.
Also, the assets of the world are finite,
but we have been profligate in their use and not recycled.
Now we live with the consequences of these actions.
All of us have no choice
but to reduce our own ‘carbon footprint’ and recycle and repair,
changing to the new reality lifestyle today,
and not wait until tomorrow.
Nature doesn’t respect Mañana.