If you are considering buying property on the Costa del Sol, one of the biggest questions is whether now is the right time to enter the market. With property prices continuing to rise across Spain, strong international demand and a limited supply of homes in popular coastal locations, the Costa del Sol property market remains highly competitive.
But does that mean buyers should wait for prices to fall — or is it better to buy now?
The Spanish Property Market Continues to Grow
Spain’s residential property market continues to benefit from strong demand and a shortage of available homes. This imbalance between supply and demand is particularly noticeable in desirable areas, where good-quality and reasonably priced properties can attract significant interest.
Across Spain, average property prices have increased by around 50% over five years, rising from approximately €1,829 per square metre in April 2022 to €2,748 per square metre in April 2026. Property prices were also 16.9% higher year-on-year, highlighting the continued strength of the Spanish housing market.
While many market experts expect the pace of price growth to moderate, a major nationwide correction is not currently expected. Some overpriced properties and weaker local markets could experience modest price adjustments, but areas with strong demand, limited housing supply and international buyer interest are likely to remain relatively resilient.
What Does This Mean for the Costa del Sol Property Market?
The Costa del Sol real estate market continues to benefit from several important factors.
The region attracts buyers from across Europe and beyond, supported by its climate, beaches, lifestyle, infrastructure and established international communities. At the same time, population growth and restrictions on new housing supply are helping to maintain pressure on available properties.
This is particularly relevant in established and highly sought-after locations such as Marbella, Mijas Costa and Fuengirola, where demand for homes remains strong.
For buyers looking for a property on the Costa del Sol, this combination of high demand and limited supply means that desirable properties can continue to command strong prices.
Costa del Sol Property Prices: Are They Likely to Fall?
One of the most common questions from prospective buyers is whether Costa del Sol property prices will fall.
Although property markets can never be predicted with complete certainty, there are currently few signs that buyers should rely on a major price crash before purchasing.
The most attractive properties in established locations are supported by several factors, including limited land and housing availability, strong demand from international buyers and the long-term appeal of the Costa del Sol as a place to live, work and invest.
This does not mean every property will continue increasing in value indefinitely. Properties that are overpriced, poorly located or in need of significant renovation may face greater pressure. For buyers, therefore, finding the right property at the right price is becoming more important than attempting to perfectly time the market.
What About Mortgage Rates in Spain?
Financing conditions are another important consideration when buying property in Spain.
Mortgage costs have remained relatively moderate compared with the higher rates seen during 2023 and early 2024. The Euribor increased from 2.143% in April 2025 to 2.747% in April 2026, but borrowing costs remain below the levels experienced when rates were above 3–4%.
For buyers requiring a Spanish mortgage, affordability will naturally depend on the loan amount, deposit, interest rate and individual financial circumstances. However, current financing conditions do not necessarily provide a clear reason to postpone a purchase indefinitely.
Should You Buy Property on the Costa del Sol Now?
For many buyers, the answer may be yes — provided the property and price are right.
If you have found a home that meets your requirements, fits comfortably within your budget and you intend to hold the property for the long term, waiting solely for a significant market correction could carry its own risks.
If prices continue to rise, delaying a purchase could mean paying more for a similar property in the future. Equally, buyers should avoid rushing into a purchase simply because they are concerned about missing out.
The best approach is to focus on property fundamentals: location, condition, potential resale value, rental demand where relevant, running costs and whether the asking price is justified by comparable properties.
Where Are the Best Places to Buy on the Costa del Sol?
The Costa del Sol offers a wide range of property markets, from established coastal resorts to quieter residential communities.
Marbella remains one of the region’s best-known luxury property markets, attracting strong international demand and buyers seeking premium homes, villas and apartments.
Mijas Costa offers a diverse selection of properties, including apartments, townhouses and villas, while benefiting from its proximity to the coast and established international communities.
Fuengirola is another popular choice for buyers looking for a combination of coastal living, amenities, transport links and year-round demand.
The right location ultimately depends on your budget and objectives. A holiday home buyer, permanent resident and property investor may all have very different priorities.
Is Now a Good Time to Buy on the Costa del Sol?
The Costa del Sol property market remains competitive, supported by strong international demand, population growth and constrained housing supply.
Although property price growth may slow, buyers waiting for a major fall in prices could find that desirable properties remain expensive — particularly in established locations where demand consistently exceeds supply.
Rather than trying to predict the exact bottom or top of the market, buyers may benefit from focusing on finding the right Costa del Sol property at the right price.
If you are financially prepared, buying for the long term and have found a property that represents good value, now can still be a good time to buy property on the Costa del Sol.
The key is not necessarily timing the market. It is making a well-informed decision based on the property, location, price and your own long-term goals.