The Costa del Sol property market delivered mixed results during the second quarter of 2026.

Official notary data showed transaction volumes falling across many municipalities compared with the same period in 2025. However, prices remained relatively resilient in most areas, suggesting that lower activity has not yet translated into widespread price reductions.

The discussion also highlighted the growing importance of looking beyond regional averages. While some municipalities recorded notable declines in sales, others performed more strongly. Similar differences were evident between buyer nationalities, price brackets and property types.

Alongside official data, this review brings together commentary from estate agents, legal advisers, mortgage specialists and market experts working across the Costa del Sol. Their observations provide valuable context for understanding the figures and identifying the trends that may shape the market during the second half of the year.

The review covers:

• National and Costa del Sol transaction data
• Local market performance
• Foreign buyer trends
• Mortgage conditions
• Legal and regulatory developments
• Estate agent sentiment
• Regional updates from across the Costa del Sol

Introduction

Every quarter, the Quarterly Review brings together industry professionals from different parts of the Costa del Sol property sector to discuss the latest market data and share what they are seeing in their own businesses.

The aim is not to predict the market or promote a particular viewpoint. Instead, it is to combine official statistics with practical experience from professionals working with buyers and sellers every day.

This Q2 2026 review was hosted by Alfredo Bloy-Dawson and featured Sean Woolley, Managing Director of Cloud Nine Spain, and Peter Franke, Partner at Franke & de La Fuente Abogados. Additional contributions came from specialists covering mortgages, international buyer markets, legal developments and local market conditions across the Costa del Sol.

Throughout this report, official statistics are presented alongside clearly attributed expert commentary. Where contributors express opinions or forecasts, these are identified as such.

Q2 in Numbers

Several themes emerged from the official data presented during the discussion.

Transaction volumes fell in many Costa del Sol municipalities compared with Q2 2025. The scale of the decline varied between locations, reinforcing the importance of analysing each local market individually rather than treating the Costa del Sol as a single market.

Despite lower sales activity, prices remained comparatively stable in many areas. This reflects an ongoing imbalance between supply and demand, particularly in established locations where quality stock remains limited.

The panel also discussed the latest estate agent sentiment survey. Responses showed that opinion remains divided.

• 38% of agents reported a weaker quarter than Q2 2025.
• 37% reported an improvement.
• 25% said trading conditions were broadly unchanged.

The results suggest there is no single experience across the market. Performance continues to depend on factors such as location, property type, pricing strategy and buyer profile.

Key themes from Q2

Although contributors represented different sectors of the industry, several common themes emerged throughout the discussion.

Buyers are taking longer to make decisions

Several contributors reported that buyers remain active but are spending more time researching, comparing properties and negotiating before committing to a purchase.

This appears to reflect greater caution rather than a lack of demand.

Local markets are performing differently

The discussion repeatedly highlighted significant variation between municipalities.

Performance in Marbella does not necessarily reflect conditions in Estepona, Málaga City, Benalmádena or Sotogrande. Individual markets continue to respond to their own supply, pricing and buyer demographics.

International demand remains broad

The Costa del Sol continues to attract buyers from a wide range of countries.

While British buyers remain an important part of the market, contributors also discussed activity from Sweden, Germany, the Netherlands, Belgium, Italy and the United States.

Rather than one nationality replacing another, the market continues to diversify.

Supply remains an important factor

Although transaction numbers have fallen in many areas, contributors noted that well-priced, high-quality properties continue to attract interest.

This supports the view that constrained supply remains one of the key influences on pricing.

National Market Overview

The review began with an examination of the latest notary data, providing an overview of activity across Spain before focusing on the Costa del Sol.

Nationally, transaction volumes softened compared with the previous year, reflecting a market that has moved away from the exceptional levels seen immediately after the pandemic.

However, the panel cautioned against interpreting lower transaction numbers as evidence of a weak market.

Instead, contributors described conditions that are increasingly shaped by affordability, available stock and buyer confidence rather than exceptionally strong post-pandemic demand.

Sean Woolley noted that this pattern was reflected in his own business. Cloud Nine Spain completed a similar number of transactions to the previous year, but at a lower average transaction value. He suggested this reflected changing buyer behaviour, with purchasers becoming more price conscious and taking longer to commit to higher-value purchases.

Peter Franke added that market activity should always be considered alongside the wider economic environment. Interest rates, inflation and changing regulation continue to influence buyer behaviour, particularly among international purchasers who are comparing Spain with other destinations.

The discussion also highlighted the importance of distinguishing between transaction data and leading indicators such as buyer enquiries. Official sales statistics provide an accurate picture of completed transactions but inevitably reflect decisions made several months earlier. By contrast, enquiry data can provide an earlier indication of changing buyer interest.

Taken together, these measures suggest a market that remains active but is becoming increasingly segmented. Broad national figures provide useful context, but understanding local markets requires a more detailed examination of regional data and the experience of professionals working within them.

Looking Beyond the Headlines

Although transaction volumes declined across much of the region, contributors cautioned against drawing simple conclusions from the figures alone.

Sean Woolley, Managing Director of Cloud Nine Spain, noted that his business had completed a similar number of transactions to the previous year, although at a lower average transaction value. In his view, this reflected buyers becoming more selective rather than withdrawing from the market altogether.

He also observed that realistic pricing has become increasingly important. Well-presented properties that are priced appropriately continue to attract interest, while overpriced listings are remaining on the market for longer.

This distinction is important when interpreting the official data. Lower transaction volumes do not necessarily indicate a lack of demand. Instead, they suggest buyers are becoming more considered in their purchasing decisions and are less willing to compromise on price or quality.

Peter Franke echoed this view, adding that many international buyers continue to regard Spain as an attractive destination. However, economic conditions, financing costs and increased political discussion around housing have encouraged buyers to undertake more detailed research before committing to a purchase.

Foreign Buyer Trends

International demand remains one of the defining characteristics of the Costa del Sol property market.

One of the most interesting discussions during the review focused on how buyer nationalities continue to differ between municipalities.

Rather than one nationality dominating the market, contributors highlighted a broad mix of international buyers, each responding to different economic conditions and lifestyle priorities.

British buyers remain an important part of the market across much of the Costa del Sol. Despite Brexit, they continue to feature prominently in transaction data and remain one of the region’s most established overseas buyer groups.

However, the review also highlighted the growing importance of other European markets, including Germany, the Netherlands, Belgium, Sweden and Italy. American buyer interest was also discussed, particularly through online enquiry data.

An important observation from the panel was that the category labelled “Other nationalities” continues to account for a substantial proportion of foreign purchases. This reflects the increasingly international nature of the Costa del Sol, with demand spread across dozens of countries rather than concentrated in just a handful of traditional markets.

For estate agents, this increasing diversity has practical implications. Marketing strategies, languages, buyer expectations and purchasing motivations continue to vary between nationalities, making local knowledge more valuable than ever.

What the Kyero Data Shows

While official transaction statistics provide a picture of completed sales, Kyero’s data offers an earlier indication of buyer demand.

Commercial Director Eugenio Oliden shared three notable trends from the platform’s latest enquiry data.

First, enquiries from the United States continue to grow, reinforcing the view that American buyers are becoming a more significant part of Spain’s international property market.

Second, enquiries submitted through WhatsApp have increased substantially. This reflects changing communication preferences among overseas buyers, many of whom now expect faster and more direct contact with estate agents.

Finally, Kyero has seen continued growth in enquiries for properties priced above €1 million. While enquiry data does not necessarily translate into completed sales, it provides an indication that demand for higher-value homes remains active despite broader economic uncertainty.

These findings complement the official statistics rather than contradict them.

Transaction data records purchases that have already completed. Enquiry data reflects current buyer behaviour and can often provide an earlier indication of changing market conditions.

Together, they present a more complete picture of the market than either dataset alone.

Expert View: Swedish Buyers

Robin Hage of SkandiaMäklarna described a Swedish market that continues to face challenges.

Higher interest rates and a weaker Swedish economy have affected buyer confidence compared with recent years. However, he stressed that demand has not disappeared.

Instead, buyers are taking longer to make decisions and are approaching purchases more cautiously.

Lifestyle remains an important motivation for many Swedish clients, but affordability has become a greater consideration than during the post-pandemic market.

Expert View: German Buyers

Sebastian Nieblas of Heidi Fischer Marbella reported that German buyers continue to view the Costa del Sol as an attractive long-term destination.

Although some buyers are taking longer to commit, interest remains steady among clients seeking permanent relocation, second homes and retirement properties.

As with several other contributors, he observed that today’s buyers are generally better informed before making enquiries and often arrive having completed extensive research online.

Expert View: Dutch and Belgian Buyers

Marleen De Vijt of Azull described continued interest from buyers in the Netherlands and Belgium.

Lifestyle, climate and accessibility remain important attractions, although buyers are increasingly focused on value and long-term quality.

Rather than making rapid decisions, many clients now spend more time comparing locations, property types and financing options before proceeding.

This measured approach was a recurring theme throughout the discussion and was reflected across several international markets.

Mortgage Update

Mortgage conditions continued to improve during the second quarter of 2026, although contributors noted that borrowing decisions remain closely linked to wider economic conditions.

Marc Elliott de Lama, Owner of Fluent Finance Abroad, reported that the European Central Bank’s recent interest rate decisions have helped improve confidence among many buyers. While mortgage rates remain above the exceptionally low levels seen a few years ago, the market has adjusted well and finance remains readily available for well-qualified applicants.

He explained that competition between lenders has continued, particularly for stronger borrowers, resulting in attractive fixed and variable rate products. Non-resident buyers continue to have access to a broad range of mortgage options, although lending criteria vary between banks.

Marc also highlighted a practical issue that affects many summer transactions. Mortgage approvals can take longer during the holiday period, making early preparation particularly important for buyers hoping to complete during the third quarter.

His overall assessment was that finance is no longer the obstacle it appeared to be when interest rates were rising rapidly. Instead, buyers are increasingly focused on choosing the right property and negotiating the right price.

Legal and Regulatory Update

Legal developments remained an important topic throughout the discussion.

Peter Franke emphasised the importance of distinguishing between political announcements, proposed legislation and laws that are already in force.

This distinction has become increasingly relevant as housing policy continues to receive significant political attention in Spain. Headlines often create uncertainty among international buyers, even when proposed measures have not yet been implemented.

Peter explained that buyers should continue to seek professional legal advice based on current legislation rather than speculation. In practice, the legal framework affecting most overseas purchasers remains stable, although individual regulatory changes continue to emerge at both national and regional level.

The discussion also covered the national short-term rental registry, which has generated considerable interest among property owners. Peter outlined the purpose of the new system and explained how it fits within the broader regulation of tourist accommodation.

His advice was clear. Buyers should understand the legal position of any property they intend to purchase, particularly if holiday rentals form part of their plans.

Estate Agent Registration

Álvaro Botella, President of the Leading Property Agents of Spain (LPA), provided an update on estate agent registration in Andalucía.

He discussed ongoing work to improve professional standards within the sector and the potential benefits of greater regulation for both consumers and reputable agencies.

The conversation focused on improving transparency and reinforcing confidence in the property profession rather than creating unnecessary barriers to entry.

Although the topic primarily affects industry professionals, contributors agreed that higher standards ultimately benefit buyers and sellers by encouraging greater accountability across the sector.

Regional Market Updates

One of the strengths of this Quarterly Review is that it combines regional statistics with local knowledge from professionals working in individual markets.

Rather than presenting the Costa del Sol as a single market, contributors highlighted the different factors influencing their own areas.

Málaga City

Paul Radcliffe of Strand described a market that continues to attract strong interest from both domestic and international buyers.

However, he observed that today’s buyers are generally better informed and more selective than in recent years. Properties that are realistically priced continue to perform well, while ambitious asking prices are increasingly being challenged by buyers.

He also noted changes in the mix of international purchasers, reflecting the increasingly diverse profile of people choosing Málaga as a place to live, work and invest.

Sotogrande and the Gibraltar Border Agreement

Charles Gubbins of Noll Sotogrande discussed the agreement relating to the Gibraltar border and its potential implications for the surrounding property market.

While the long-term effects remain uncertain, improved cross-border arrangements could strengthen the appeal of Sotogrande and neighbouring areas for buyers with personal or business connections to Gibraltar.

Rather than making firm predictions, Charles encouraged viewers to view the agreement as one factor among many that may influence future demand.

Benalmádena

Sandra Laurie of WL Costa reported continued interest in Benalmádena from a broad range of international buyers.

She noted that lifestyle continues to be the area’s strongest attraction, although purchasers are approaching decisions with greater care than during the exceptionally active post-pandemic period.

Properties that combine good location, quality and realistic pricing continue to generate interest despite a more considered market.

La Zagaleta and El Madroñal

Geoff Harding of Property Facilitators Iberia provided an update on two of the Costa del Sol’s best-known luxury residential communities.

He described continued demand for premium properties, supported by an international client base seeking privacy, security and high-quality homes.

Although the luxury market is not immune to wider economic conditions, Geoff suggested that buyers at the top end of the market continue to make decisions based primarily on long-term lifestyle considerations rather than short-term market fluctuations.

What to Watch in Q3

Several themes are likely to shape the market during the third quarter of 2026.

Interest rates will continue to influence affordability and buyer confidence, particularly if further changes are announced by the European Central Bank.

The availability of quality housing stock is also expected to remain an important factor. Throughout the discussion, contributors consistently reported that well-presented, realistically priced properties continue to attract interest, while overpriced homes are taking longer to sell.

International demand is expected to remain broad, although activity will continue to vary between nationalities and local markets.

Finally, the panel agreed that local knowledge has become increasingly valuable. Regional averages provide useful context, but understanding individual municipalities requires an appreciation of local supply, buyer profiles and pricing conditions.

Conclusion

The second quarter of 2026 did not produce a single story for the Costa del Sol property market.

Instead, it highlighted the diversity of one of Europe’s most international residential markets.

Official statistics showed lower transaction volumes across many municipalities, while prices remained relatively resilient. At the same time, contributors working across different sectors of the industry described buyers who remain active but are taking longer to make decisions and placing greater emphasis on value.

Perhaps the clearest message from this Quarterly Review is that broad generalisations have become increasingly unhelpful.

Conditions vary significantly between municipalities, property types and buyer groups. Understanding today’s market requires both reliable data and local expertise.

By combining official statistics with first-hand experience from estate agents, legal advisers, mortgage specialists and market experts, this Quarterly Review aims to provide a balanced picture of the Costa del Sol property market as it stands today.

The discussion demonstrated that while the market has become more measured than during the post-pandemic years, international demand remains a defining feature of the region. As the second half of 2026 unfolds, buyers and sellers alike will continue to benefit from informed advice, realistic expectations and an understanding that the Costa del Sol is not one market, but many local markets operating side by side.