Has the Costa del Sol become too expensive? Are property prices in Marbella, Estepona and Mijas Costa reaching their limits? And is the Spanish property market heading for a correction, or are there still good opportunities for buyers in 2026?
These are questions we’re hearing increasingly often from people considering buying property on the Costa del Sol.
Our latest Mijas Costa property market update looks in more detail at local trends, property prices and the changing conditions affecting buyers and sellers.
To explore what’s really happening, I sat down with Sean Woolley, founder of Cloud Nine Spain, to discuss the Costa del Sol property market, how it has changed over the past 25 years, and what buyers and sellers should expect over the next 12 months.
Between us, we’ve seen some significant changes in the local property market, from the boom years and the financial crash of 2007/08 to the post-pandemic surge in demand. We share our experiences, compare different areas and discuss where we believe the opportunities are today.
Watch the full conversation above.
Has the Costa del Sol Become Too Expensive?
There is no denying that property prices on the Costa del Sol have increased significantly, particularly since the pandemic.
Areas such as Marbella, Benahavís and Estepona now command substantial prices, while traditionally more affordable locations have also seen considerable growth.
However, the Costa del Sol is not one single property market. Prices, demand and buyer profiles can vary considerably between neighbouring towns, developments and even individual streets.
The important question is not simply whether the Costa del Sol is expensive, but whether individual properties are realistically priced for their location, condition and current level of demand.
Is Another Spanish Property Crash Coming?
Having experienced the financial crisis of 2007/08, we discuss how today’s market compares with that period.
The circumstances are very different. The previous crash was associated with a major banking and property-sector crisis, excessive development and a significant correction in property values.
Today’s market has different underlying conditions. Although affordability is becoming an issue in some locations, we are not seeing the same circumstances that preceded the last major crash.
That doesn’t mean prices cannot adjust. Some sellers are still basing their expectations on the exceptional market conditions of the post-COVID years. Buyers are becoming more selective, and properties that are overpriced can take considerably longer to sell.
Our view is that some price adjustments are possible, but a correction in certain areas or property types should not automatically be confused with another 2008-style crash.
Costa del Sol Property Prices in 2026: Marbella, Estepona, Benahavís and Mijas
We look at the differences in property prices across some of the Costa del Sol’s most popular locations.
The asking-price figures discussed in our interview for September 2026 illustrate just how much prices can vary:
- Marbella: approximately €6,000 per square metre.
- Benahavís: approximately €5,600 per square metre.
- Estepona: just over €5,000 per square metre.
- Mijas: approximately €3,700 per square metre.
These are asking-price indicators, not confirmed prices achieved in completed property sales. Actual values depend on the property, its location, condition, views, facilities and the level of demand.
The figures also highlight why buyers should look beyond the headline prices associated with Marbella and consider other parts of the Costa del Sol.
Where Can Buyers Still Find Value on the Costa del Sol?
We discuss a number of locations that deserve attention, including:
- Mijas Costa: A varied property market offering everything from established apartment communities to villas and new developments. Our Mijas Costa area guide explores the different neighbourhoods and what they offer buyers.
- La Cala de Mijas: An increasingly popular location with a strong lifestyle appeal. Explore properties for sale in La Cala de Mijas.
- Calahonda: An established residential and holiday-home destination with a broad choice of apartments, townhouses and villas. See properties for sale in Calahonda.
- Riviera del Sol: A popular residential area offering a variety of property styles and price points. Browse properties for sale in Riviera del Sol.
- Fuengirola: A vibrant town with excellent amenities, transport links and year-round appeal.
- Estepona: A location that has undergone considerable investment and development in recent years.
- Casares and Manilva: Areas that may offer alternatives for buyers looking beyond the more established hotspots.
- Alcaidesa and Sotogrande: Locations attracting buyers looking for a different lifestyle and property offering.
There is no universal answer to where the best value can be found. It depends on what a buyer wants from their property, whether that is a holiday home, permanent residence, rental investment or a combination of these.
Who Is Buying Property on the Costa del Sol?
The international buyer profile has evolved considerably.
British buyers remain an important part of the market, but the Costa del Sol now attracts a diverse range of nationalities, including American buyers, entrepreneurs, younger families and people relocating permanently to Spain.
We also discuss how the traditional British retirement buyer profile has changed, with fewer buyers simply looking for an inexpensive retirement apartment and more international purchasers considering higher-value properties and permanent relocation.
This diversity of demand is an important part of the Costa del Sol’s appeal.
New Build Versus Resale Property: Where Is the Better Value?
New developments continue to attract buyers, particularly those looking for modern designs, energy efficiency, contemporary facilities and warranties.
However, a new-build property is not automatically better value than a resale property.
Some new developments are priced at a significant premium, while established residential communities can offer larger properties, mature gardens, better locations and excellent facilities.
The key is to compare like with like and consider the overall value rather than simply whether a property is brand new.
If you’re weighing up these options, take a look at our guide to buying off-plan versus resale property in Mijas Costa.
Where Would We Invest €500,000 on the Costa del Sol?
One of the more interesting parts of our discussion is where each of us would consider investing €500,000 today.
Sean looks towards established developments in the heart of the Golden Triangle, while my preference would be to look at Mijas Costa, particularly the area east of La Cala towards Fuengirola.
Infrastructure improvements, lifestyle appeal and the continued development of the coastal boardwalk are among the factors influencing my thinking.
Of course, the right investment depends on individual objectives, timescales and appetite for risk. But it gives an interesting insight into how two local property professionals approach the same budget.
Costa del Sol Property Market Forecast: What Happens Over the Next 12 Months?
Looking ahead, we discuss the possibility of price adjustments of around 5–10% in some cases, particularly where sellers have unrealistic expectations or properties are not competitively priced.
This is not a prediction that the entire Costa del Sol market will fall by that amount. Different locations and property types will continue to perform differently.
Well-presented properties in desirable locations, priced realistically, should continue to attract interest. Properties that are overpriced may need to be reduced before buyers are willing to commit.
For buyers, this could mean more time to make decisions and greater scope to negotiate. For sellers, it reinforces the importance of getting the asking price right from the outset.
Is Now a Good Time to Buy Property in Spain?
There is no single answer that applies to everyone.
If you are buying a property to enjoy for many years, your decision should be based on affordability, location, lifestyle and whether the property meets your needs.
If you are buying as an investment, you need to look carefully at the purchase price, running costs, rental potential, future resale prospects and local market conditions.
If you’re considering making a purchase, our guide to buying property in Spain answers many of the questions international buyers ask before taking the plunge.
What we would caution against is trying to time the market perfectly. Waiting for a major crash that may never happen could mean missing out on the right property.
Equally, buyers should not feel pressured into paying an inflated asking price simply because a property is on the market.
Local knowledge, realistic pricing and careful negotiation matter more than ever.
Our Verdict: A Changing Market, Not Necessarily a Crashing Market
The Costa del Sol remains one of Europe’s most attractive destinations for international property buyers, but the market is becoming more selective.
Buyers are increasingly discerning, sellers need to be realistic, and the differences between individual locations and developments are becoming more important.
We believe there are still opportunities, but finding them requires a good understanding of the local market rather than relying on general headlines about Spanish property prices.
At Target Property Spain, we specialise in helping international buyers and sellers across the Costa del Sol. Our approach is straightforward: honest advice, local knowledge and a no-pressure service.
You can also find out more about Keith Spitalnick and his experience in the Costa del Sol property market.
Browse properties for sale across the Costa del Sol or get in touch with our team to discuss your plans.
Frequently Asked Questions About the Costa del Sol Property Market
Are Costa del Sol property prices too expensive in 2026?
Property prices have increased significantly across the Costa del Sol, particularly since the pandemic. However, prices vary considerably depending on the location, property type and condition. While some areas, particularly Marbella, are now expensive by international standards, locations such as Mijas Costa, Manilva and Casares may offer more accessible opportunities.
Will property prices fall on the Costa del Sol in 2027?
Some price adjustments are possible over the next 12 months, particularly for properties that are overpriced or where sellers have unrealistic expectations. A correction of around 5–10% in certain cases is possible, but this should not be interpreted as a forecast of a market-wide crash. Performance will vary between locations and property types.
Is the Spanish property market heading for another crash?
There is currently no clear reason to assume that the Costa del Sol is heading for a repeat of the 2007/08 financial crisis. The market conditions are different, although affordability pressures and unrealistic asking prices could lead to adjustments in some segments.
Is now a good time to buy property on the Costa del Sol?
For buyers who find the right property at a realistic price and can comfortably afford it, there are still opportunities. Buyers may have more time to consider properties and negotiate than during the exceptionally competitive post-pandemic market. The best time to buy ultimately depends on individual circumstances and long-term objectives.
Which is cheaper, Marbella or Mijas Costa?
Mijas Costa is generally more affordable than Marbella. The September 2026 asking-price figures discussed in our interview were approximately €3,700 per square metre for Mijas, compared with around €6,000 per square metre for Marbella. Individual properties can vary considerably, but Mijas Costa offers buyers an alternative to Marbella’s premium pricing.
Where is the best place to buy property on the Costa del Sol?
There is no single best location. Marbella and Benahavís appeal to buyers looking for premium properties, while Estepona, Mijas Costa, La Cala de Mijas, Calahonda and Fuengirola offer different combinations of lifestyle, accessibility and value. The right location depends on budget, intended use and personal preferences.
Is Mijas Costa a good place to invest in property?
Mijas Costa is an established residential and holiday-home market with a wide range of apartments, townhouses and villas. Its position between Marbella and Fuengirola, access to Málaga Airport and lifestyle facilities make it worth considering. Individual investment decisions should take account of purchase price, rental demand, running costs and resale potential.
Is it better to buy a new-build or resale property in Spain?
Both options have advantages. New-build properties typically offer modern layouts, contemporary facilities and energy-efficient specifications. Resale properties may offer better locations, larger terraces, mature communities and more competitive prices. Buyers should compare the total value rather than assuming new-build automatically means better investment.
Are international buyers still purchasing property on the Costa del Sol?
Yes. The Costa del Sol continues to attract international buyers from across Europe, the UK, the United States and elsewhere. Buyers include holiday-home purchasers, retirees, families relocating permanently and investors. The diversity of international demand remains an important feature of the local property market.
How do I find out what a property is really worth on the Costa del Sol?
Asking prices do not necessarily reflect the prices achieved in completed sales. A realistic valuation should consider recent comparable transactions, competing properties currently on the market, the property’s condition, location and specific features. Advice from an experienced local estate agent can help buyers and sellers understand the market more accurately.
This discussion reflects the opinions and market observations of the participants at the time of recording. Asking-price figures are not equivalent to completed transaction prices, and market forecasts should not be treated as guaranteed outcomes.