The Málaga property market in 2025 — a year in review and the trends for 2026.
2025 has been a pivotal year for the property market in Málaga and the Costa del Sol. The combination of high international demand, economic growth, an attractive climate and quality of life has driven huge interest in buying and selling homes across the province, placing areas like Fuengirola, Benalmádena, Mijas Costa and Marbella among the most dynamic in Spain. Here's a clear, direct and useful analysis of what happened in 2025 and where the market is heading in 2026 — whether you're thinking of buying, selling or investing.
1. How the market evolved in 2025
Málaga's property sector had a year of intense activity. The highlights:
- Price growth above the national average. The province recorded one of the biggest increases in the country. Málaga continues to lead demand thanks to its appeal to foreign buyers and investors seeking high-yield areas.
- High demand across the Costa del Sol. Municipalities like Fuengirola, Mijas, Benalmádena and Marbella saw a notable increase in international buyers, especially from northern Europe.
- Less supply, more competition. Available housing stock shrank compared to previous years, adding pressure to prices — especially in well-located areas near the sea.
- A particularly strong rental market. Rental demand continues to far outstrip supply, keeping prices high and yields attractive for owners.
2. Fuengirola in 2025
Fuengirola was one of the most active municipalities of the year:
- In high demand with foreign buyers. Swedes, Finns, Britons and Germans remain the main buyers, drawn by quality of life, climate and connections.
- Strong interest in properties near the sea and in serviced developments. Modern apartments, penthouses with views, homes with pools and complexes with communal areas were the stars of 2025 searches.
- Rising prices, but with good opportunities. Although the average price climbed, December is typically a month when some sellers are more open to negotiating — especially those wanting to close before the end of the tax year.
3. The most sought-after homes in 2025
Thinking of selling? This data matters to you:
- Renovated or modern apartments
- Penthouses with sea views
- Homes with terraces or outdoor space
- Energy-efficient properties
- Developments with pools and green areas
- Turn-key, ready-to-move-in homes
Today's buyers want comfort, good design, natural light and proximity to services.
4. What to expect in 2026
Forecasts always depend on the global economy, but the outlook for Málaga and the Costa del Sol is positive:
- Prices stable or rising slightly. No significant drop is expected: international demand remains strong and supply is limited.
- More European buyers seeking a second residence. Especially Scandinavians, Britons, Germans and Belgians.
- Continued interest in energy-efficient homes with outdoor space. Buyers prioritise comfort, energy savings and quality of life.
- Growing buy-to-let investment. Both traditional rentals and medium/long stays for remote workers.
5. Is it a good time to buy or sell? Our view
If you want to sell: December and January can be very good months to list — less competition, more serious active buyers and faster negotiations. If your home is in good condition or renovated, its value remains very attractive.
If you want to buy: it can be a good opportunity to negotiate a better price, find properties that didn't sell before summer, or take advantage of sellers wanting to close the tax year.
2025 was a solid, dynamic year for the Málaga and Costa del Sol property market. Fuengirola remains one of the best areas to live, invest or buy a second home, and 2026 points to a stable market with healthy demand and opportunities on both sides of the table. If you're thinking of buying or selling, at GR Estates we'd be delighted to advise you — browse our current properties or see the new-build developments.
The GR Estates Team
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Written with AI assistance and reviewed by the GR Estates team before publication. AI transparency
