2026 Property Market Forecast: Costa del Sol (Property in Fuengirola, Benalmádena & El Higuerón)
If you’re thinking about buying property on the Costa del Sol, 2026 is shaping up to be a year you’ll want to pay close attention to. From sunny beachfront property in Fuengirola to hillside homes in Benalmádena and the premium lifestyle offered by El Higuerón homes, this stretch of coastline continues to attract buyers who want more than just bricks and mortar.
With buyers virtually queuing up and quality homes in short supply, the Costa del Sol property market shows no signs of losing momentum. In this forecast, we’ll take a look at what’s happening both nationally and locally, drill down on what the latest figures really mean for buyers, and explain why so many people continue to choose the Costa del Sol as the place to invest, relocate or find that Mediterranean home they’ve always dreamed of as we head into 2026.
Spain’s national housing market in 2025–2026
According to the official Índice de Precios de Vivienda (IPV) from the Instituto Nacional de Estadística (INE), Spain’s national statistics institute, housing prices jumped 12.8% year-on-year in Q3 2025.
- Housing resale grew 13.4%, while new homes rose 9.7% in the same period.
- Quarterly prices also increased, reflecting continued upward momentum.
Similarly, national data compiled by the Ministry of Housing and Agenda Urbana showed the average national price for residential property reached €2,093.5 per m² in mid-2025, up more than 10 % year-on-year.
The Banco de España (Spain’s central bank) has also documented robust price increases across the country and highlighted that price growth is more pronounced in coastal and metropolitan regions, which includes the Costa del Sol, due to strong demand and limited new housing supply.
This data paints a picture of sustained nationwide house price growth, setting the stage for continued increases in local markets, such as Málaga province and the Costa del Sol through 2026.
2026 national forecast
Analyses based on central bank and research institute projections suggest the following general trends for 2026:
- BBVA Research analysis suggests prices will continue rising, though at a more moderate pace, with estimates around +7% in 2026, following a strong 10%+ increase in 2025 (El País).
- Broader forecasts by institutions like CaixaBank Research anticipate solid national growth through 2026, reflecting sustained demand and constrained supply.
Taken together, these forecasts suggest that in 2026 prices are expected to remain elevated with moderate increases, particularly in desirable regions like the Costa del Sol.
Costa del Sol local market overview
Málaga Province
Statistics from Idealista show that the average price per square metre in Málaga province reached over €4,000 by late 2025, with annual gains near +16% compared with the previous year. This growth is well above the national average, signalling strong local pressure on prices in coastal municipalities, that are popular with foreign buyers, lifestyle relocators and investors.
Property in Fuengirola
According to Idealista, Fuengirola is part of the broader Málaga provincial market showing steady price increases. Málaga province’s strong price growth (+16% y/y) reflects similar patterns in the popular coastal towns, like Fuengirola. The coastal municipalities are key to boosting the provinces average prices, and Fuengirola typically sits at the higher end, due to its beachfront front position and excellent transport links. Driven by sustained demand, international buyer interest and limited new construction supply, prices are expected to continue to rise and to stabilise at moderately higher levels in 2026.
Property in Benalmádena
During 2026 property market in Benalmádena is expected to remain positive after strong 9–15% year-on-year growth in 2025, with expected increases of around 3–9% in 2026 compared with 2025. This outlook aligns with forecasts from the Bank of Spain, which highlight ongoing demand in coastal markets but slower growth due to affordability and financing constraints.
El Higuerón homes
El Higuerón sits in what is traditionally a premium sub-market of the Costa del Sol. While official national statistics like the INE’s IPV do not detail hyper-local districts, the broader trends underpinning Málaga province’s price escalation carry over. The price of property for sale in El Higueron, a high-end area, tend to not only reflect but increase regional dynamics, particularly where supply is limited and demand strong.
Expect continued capital preservation and steady price appreciation, supported by demographic trends and limited availability of premium properties relative to overall demand.
Broader economic & market drivers
Several structural conditions explain why the market is expected to remain firm through 2026:
- Strong nationwide price growth: National housing price indices are posting double-digit year-on-year increases through 2025 (INE data).
- Demand outpacing supply: Official statistics show that new housing stock remains limited compared to demand in many regions. Limited supply exerts upward pressure on prices, especially in desirable coastal zones.
- Institutional forecasts point to continued gains: BBVA Research and other bodies, foresee continued price increases in 2026, often 5–7% or higher, albeit more moderate than the previous year.
Final 2026 Costa del Sol property forecast summary
Official forecasts indicate that the Costa del Sol property market is set to remain stable in 2026, with continued but moderating price growth. Strong gains recorded across Spain and Málaga province through 2024–2025, combined with persistent supply constraints, are expected to support prices in established coastal markets such as Fuengirola and Benalmádena.
Premium areas including El Higuerón are likely to show greater resilience, underpinned by limited availability and higher-income demand. Overall, the 2026 outlook points to capital preservation with selective price appreciation rather than a market correction.
In conclusion, the Costa del Sol remains one of Spain’s standout residential property hotspots. Consistent demand from both Spanish and international buyers, combined with limited new development, has helped keep prices moving steadily upward. With reliable data and respected forecasts pointing to continued growth through 2025 and throughout 2026, the region’s appeal looks set to continue rather than slow down.
If you’d like information about the property for sale on the Costa del Sol or would like to browse our full range of property for sale in Fuengirola, Benalmadena and El Higueron homes, visit our website at www.pardalisestates.com or for advice and assistance call us on + 34 951 272 598, WhatsApp + 34 613 645 845 or email info@pardalisestates.com.
FAQs
What is the forecast for property in Fuengirola in 2026?
The forecast is extremely favourable if you want to buy property in Fuengirola. The market is expected to continue performing strongly due to Fuengirola’s beachfront location, connectivity, infrastructure and international buyer demand. Prices are forecast to rise modestly or stabilise at higher levels, rather than decline.
Is 2026 a good time to buy property on the Costa del Sol?
Yes. Savvy investors are looking at property for sale on the Costa del Sol, as a means to delivering long-term value, lifestyle benefits and capital appreciation. While growth is expected to be more moderate than in previous years, prices are forecast to remain firm, making real estate on the Costa del Sol a sound investment.
Why is the price of property on the Costa del Sol still increasing?
Prices continue to rise due to demand exceeding supply of high-quality property for sale on the Costa del Sol, especially in coastal municipalities. International buyers, lifestyle relocations and limited new housing development remain key drivers.
