The Mijas Costa property market has continued its strong upward trajectory throughout 2025, reaching an important milestone by surpassing the previous peak seen before the 2008 financial crisis. In this market update, Keith from Target Property Spain shares an on-the-ground perspective on what has driven growth this year and what buyers and sellers can realistically expect as the market moves into 2026.
Property Prices in Mijas Costa Continue to Rise
Recent market data shows that average property prices in Mijas Costa now sit at approximately €4,104 per square metre, representing a year-on-year increase of over 12% compared with November 2024. This growth mirrors trends across the wider Costa del Sol and highlights the continued demand for quality homes in prime locations.
While new-build properties have led much of this price growth, resale properties have also benefited. Demand remains especially strong in established areas such as La Cala de Mijas, Calahonda, and Riviera del Sol, where limited supply and proximity to the beach continue to push values upward.
Why Today’s Market Is Not a Repeat of 2008
Although prices have exceeded their 2008 highs, today’s market conditions are fundamentally different. Prior to the global financial crisis, bank lending was far less regulated, speculative buying was widespread, and prices were often unsupported by genuine demand.
In contrast, the current Mijas Costa market is underpinned by:
- Stricter and more responsible mortgage lending from Spanish banks
- Buyers purchasing for lifestyle, relocation, or long-term investment
- A shortage of available housing in high-demand areas
These factors point to steady, sustainable growth, rather than the speculative boom that preceded the 2008 crash.
Who Is Buying Property in Mijas Costa Today?
The buyer profile in Mijas Costa has shifted significantly in recent years. Historically dominated by second-home buyers, the market is now much more balanced, with approximately 50% of buyers relocating permanently to Spain.
Relocations remain strong, driven by lifestyle priorities such as climate, healthcare, schooling, and remote working flexibility. Second-home buyers are still active, although more cautious and highly focused.
Emerging buyer markets in 2025 include Dutch and American purchasers, attracted by the Costa del Sol’s lifestyle offering, direct international connections, and comparatively good value when measured against other global destinations.
Short-Term Rentals and a More Balanced Market
An increasing number of communities in Mijas Costa are voting to restrict short-term holiday rentals. This has begun to reshape investor behaviour and contribute to a market that is no longer heavily skewed in favour of sellers.
Rather than transitioning into a buyer’s market, Mijas Costa is moving toward a more balanced environment, where realistically priced properties attract strong interest and over-ambitious asking prices are adjusted accordingly.
For buyers waiting for a significant market correction, current conditions suggest that such a drop may not materialise in the short term due to continued demand and limited supply.
Gran Parque: A Sign of Mijas Costa’s Continued Growth
A major highlight of 2025 has been the opening of Gran Parque, one of the largest urban parks in Andalucía. The park features extensive green areas, walking and cycling routes, sports facilities, and cultural spaces, reinforcing Mijas Costa’s appeal as a long-term place to live.
Investments like Gran Parque demonstrate the municipality’s commitment to improving infrastructure and quality of life, which in turn supports long-term property values.
Target Property Spain: Growth and Expansion in 2025
Reflecting the strength of the local market, Target Property Spain expanded its operations in 2025 by acquiring and integrating the neighbouring office space, effectively doubling the size of its premises. The team has grown significantly, with further recruitment planned for 2026.
The company has also launched a newly updated website, making it easier for buyers to search for properties, explore Mijas Costa neighbourhoods, and stay informed with up-to-date market insights.
Mijas Costa Property Market Outlook for 2026
Looking ahead, the outlook for the Mijas Costa property market remains positive. Limited supply, steady demand, responsible lending practices, and continued investment in local infrastructure all point toward stable and sustainable growth rather than rapid speculation.
Prime properties in well-located areas are expected to remain in high demand, while the overall market continues to mature into a healthier, more balanced phase.
Thinking About Buying or Selling in Mijas Costa?
For personalised advice on buying, selling, or relocating to the Costa del Sol, speak directly with a local expert.
Keith and the team at Target Property Spain provide honest, on-the-ground guidance tailored to international buyers and expats, with deep knowledge of Mijas Costa, La Cala de Mijas, Calahonda, and Riviera del Sol.
👉 Contact Target Property Spain today to discuss your property plans or request a confidential market consultation:
https://www.targetpropertyspain.com/contact
From all of us at Target Property Spain, Merry Christmas and a Happy New Year — and we look forward to helping you make Mijas Costa your home in 2026 and beyond.