October 12, 2026
Costa del Sol Property Market Review: Q3 2026
This is the summary of the findings from the Q3 2026 Quarterly Review podcast, available on YouTube and Spotify and sponsored by Marbella Interiors.
The Costa del Sol property market in the third quarter of 2026 recorded divergent transaction patterns and shifts in buyer behaviour. Official data for Andalucia in the second quarter showed property prices increased by 11.9%, sales volumes fell by 5.5%, and mortgage applications decreased by 9.3%. Estate agents reported longer negotiation periods and selective price reductions on overpriced stock.
Agent Sentiment Survey
The quarterly poll of real estate professionals produced an even split:
34% reported better trading conditions than the previous year. 32% reported worse conditions. 34% reported conditions remained the same.
Transaction Volumes and Pricing
Sean Woolley of Cloud Nine Spain stated that company transaction numbers rose by 50% to 60% compared with Q3 2025, while total revenue remained flat. The average sale price dropped from €1,000,000 to €650,000, influenced by land plot sales in Monte Mayor.
Alvaro Botella LPA President and CEO of Brekstone noted that developers have built an excess of villas for the available buyer pool. Panel members observed a surplus of properties priced above €6,000,000 and a shortage of stock between €1,000,000 and €3,000,000. In Estepona, the Alcazaba Beach development had one property listed for sale out of an inventory of 300 to 400 units.
Municipal Notary Data
Sean Woolley and Peter Franke of Franke and de la Fuente reviewed rolling 12-month notary data across coastal municipalities:
Benahavis recorded an average sales price of approximately €1,000,000, compared with €787,000 in Marbella, €373,000 across Malaga province, and less than €500,000 in Estepona. Non-Spanish buyers accounted for 86% of purchases in Benahavis, and resales represented 91% of sales. Total sales in Benahavis reached 623 over 12 months, compared with nearly 4,000 in Marbella and over 3,000 in Estepona.
Estepona recorded 86% of its transactions in apartments, with new developments accounting for 25% of total sales.
Buyer Nationalities
The five main buyer nationalities across Malaga province were the United Kingdom, Sweden, the Netherlands, Poland, and Germany. Swedish buyers ranked first in Benahavis, second in Marbella, and third across Malaga province. Dutch purchasers were the largest foreign buyer group in Estepona, followed by British and Polish buyers. Polish buyers ranked fourth across Malaga province.
Local Market Reports
Keith Spitalnick of Target Property Spain stated that Q3 trading in Mijas Costa was quiet. Buyers took longer to decide, multiple offers on individual listings decreased, and vendors implemented price reductions on overpriced stock.
Ben Holmes of Holmes Sotogrande reported lower inquiry levels and reduced transaction volumes in Sotogrande. Demand remained steady for renovated properties priced between €3,500,000 and €5,500,000. Supply was low for villas priced between €1,000,000 and €1,500,000 and apartments below €650,000. Properties listed above €6,000,000 experienced low demand and required price adjustments below €5,000,000 to secure buyers.
International Buyer Commentary
Jonas Brask of Formula Properties reported an increase in Danish buyer inquiries in Q3 2026 compared with the previous year. Completed sales did not match the increase in lead volume because buyers hesitated over concerns about paying above market value.
Tatjana Pekala of Dream Property reported consistent quarterly transaction levels among Polish buyers, focused on Estepona, Mijas, and Campo de Gibraltar. International media reports concerning Spanish housing legislation caused concern among prospective investors, prolonging transactions.
Taxation and Planning
Peter Franke stated that the Andalucian property transfer tax will fall to 6.75% in January 2027, with plans to reduce the rate to 6% over four years. By comparison, the Balearic Islands charge between 8% and 13%, and Barcelona charges between 10% and 12%. Buyers are scheduling notary appointments for January 2027 to access the lower rate.
Alvaro Botella and Peter Franke noted that the Plan General de Ordenacion Municipal for Marbella received approval on 18 September 2026, though official gazette publication remains pending. The Plan de Ordenacion Urbana, expected in 2027, will define building permissions and plot allocations. The approved plan does not grant automatic legal status to existing unlicenced properties.
Alvaro Botella stated that on 18 September 2026, the Junta de Andalucia agreed to make the proposed regional estate agent register voluntary. The newly formed Federation of Real Estate Associations in Andalucia, comprising seven associations and over 400 agencies, has requested an audience with the regional government to lobby for mandatory registration. The LPA has also established training programmes for unemployed workers with the town halls of Marbella, Estepona, and Benahavis.
A Spanish general election has been called for 29 November 2026 following parliamentary rejection of rental and tenancy decrees.
Mortgage Sector
Marc Elliott de Lama of Fluent Finance Abroad stated that the European Central Bank raised interest rates in September. The Euribor closed September at 3.25%, an increase of one percentage point from spring, adding approximately €100 to monthly repayments on an average variable mortgage. Lenders notified brokers of further increases, including a five-year fixed rate for non-residents increasing to 4.95%.
Portal Analytics
Eugenio Oliden of Kyero reported three trends from portal metrics:
Average enquiry budgets increased by 17% year-on-year, rising from €165,000 to €185,000. Inquiries for properties priced over €250,000 accounted for 40% of all enquiries, up from 30% twelve months prior.
Phone and WhatsApp contacts accounted for approximately 28% of all leads. 40% of inquiries arrived outside standard working hours of 10:00 to 19:00, with Sunday recording the highest volume of inquiries. Across the portal, 65% to 66% of buyer telephone calls went unanswered during weekdays, rising to 86% at weekends.
Artificial intelligence scraping software has inflated portal web traffic figures. Kyero assesses buyer interest using user actions, such as page dwell time, click rates, and direct inquiries, rather than aggregate visitor numbers.
