Costa del Sol apartment market report — Q1 2026

This is the first of our quarterly market notes. The intent is honest commentary on what we're actually seeing across the eight Costa del Sol towns we work — Málaga, Torremolinos, Benalmádena, Fuengirola, Mijas, Marbella, Benahavís, Estepona — rather than an aggregator's headline.

We anchor against four public data sources: the Ministry of Transport's Estadística de Transacciones Inmobiliarias (Mitma), the Registradores de la Propiedad's Estadística Registral Inmobiliaria, Banco de España's Índice de Precios de Vivienda, and the INE housing series. Where a specific figure here matters, it is from one of those, with the quarter noted. Where the figure is our own observation across our portfolio, we say so. We don't invent numbers.

The general direction in Q1 2026

Three observations frame our reading of Q1:

Inventory tightness varies sharply by town. Marbella inventory remains tight, especially in the Old Town and Sierra Blanca / Golden Mile segments. Estepona has more inventory at the entry-to-mid price band but pace of absorption is faster than 12 months ago. Málaga city inventory is structurally thin on the standard MLS — see our Málaga note below.
The foreign-buyer share of Málaga-province transactions remains structurally elevated. Registradores quarterly data continues to show foreign buyers as a consistent and meaningful share of Málaga-province transactions, with British, German, Belgian, Dutch, and Scandinavian buyers featuring prominently. Province-level only — Registradores does not publish foreign-buyer share by municipality.
The price gap between coastal towns has not closed. Marbella per-m² figures remain meaningfully above Estepona's, which remain meaningfully above Fuengirola's and Torremolinos'. The ordering hasn't changed in the last several quarters; the differentials have moved modestly but not transformatively.

Town-by-town, our reading

Marbella

Inventory remains tight. The Old Town, Sierra Blanca, and Golden Mile are still the categories where we routinely cannot match a brief in under three to four weeks. Nueva Andalucía and Elviria are looser on the supply side and represent better value-per-square-metre for buyers who don't need the brand-name postcode.

Foreign-buyer interest broadly stable, with the typical breakdown weighted toward British, Northern European (Dutch, Belgian, German), and Scandinavian buyers. Short-let yields in Puerto Banús continue to be the strongest in the region for well-positioned 2- and 3-bed apartments.

The biggest single risk we're watching: comunidad culture variance is widening. Older Puerto Banús buildings increasingly show maintenance backlogs (rooftop waterproofing, lift replacement, façade) that translate into derramas (special levies). Buyer due diligence on the comunidad accounts has become more important, not less, over the last 24 months.

Estepona

The story of the last two years. Estepona's seafront refit, the orchidarium, the marina expansion, the public-realm improvements — these have changed the town's character, and the apartment market has been pricing this in. Price growth has been the strongest in our coverage over the trailing 12 months, on Banco de España's provincial IPV index relative to Marbella's slower-but-positive trajectory.

Estepona's new-build share is meaningfully higher than Marbella's. Banco de España and Mitma both reflect this on the new-build share series. For investment-led buyers comfortable with off-plan timing risk, Estepona currently offers stronger development-tier optionality than Marbella.

Mijas

Two markets in one. La Cala de Mijas on the coast has been growing steadily with the seafront-amenity upgrades; Mijas Pueblo continues to attract a distinct buyer profile (older, lifestyle-led, less price-sensitive). Mijas Golf has had a quiet but real revival as buyers underestimated the value of the established golf-and-club lifestyle there.

Fuengirola, Benalmádena, Torremolinos

The east-side three. Working towns with year-round economies and Cercanías-rail access to Málaga in under 40 minutes. Apartment values here have moved less than Marbella or Estepona over the last 24 months, which is a feature not a bug — these are the buy-and-hold neighbourhoods. Benalmádena Pueblo specifically continues to be an underrated answer for buyers wanting Spanish-village character within 25 minutes of Málaga airport.

Málaga city

The market that operates differently. Most Málaga-city inventory does not flow through the Costa del Sol MLS that the coastal-resort agencies share. Our standard feed reflects a small share of the genuine Málaga market; we cover Málaga through our partner-agency network and a concierge brief — see our Málaga page for the architecture.

Centro Histórico and Soho continue to attract a different buyer profile — younger, urban, less interested in resort amenities — and the price-per-m² in the centro reflects this. The east-side neighbourhoods (Limonar, Pedregalejo, El Palo) continue to be the strongest family-buyer answers within the municipality.

Benahavís

Small market by volume, distinctive character. Apartments here typically anchor in golf-led urbanizaciones (La Quinta, Los Flamingos) and attract a buyer who wanted Marbella's price-per-m² but with a hillside setting and 12 minutes' drive penalty. Q1 volumes are small but stable.

The tax change worth knowing

If you're a British owner taking rental income from a Costa del Sol apartment, remember: since Brexit, UK residents are no longer treated as EU residents for Spanish non-resident income tax purposes. This means:

Tax rate on rental income is 24% (not 19%)
Expenses cannot be deducted from rental income for Modelo 210 purposes

This is a material change for British owners who acquired apartments pre-2021 and continue to rent them out. If you're in this position and your Modelo 210 filings haven't been adjusted, talk to your asesor fiscal. For full annual cost detail see our cost-of-owning guide.

What we'd expect in Q2 2026

Three things we'll be watching:

Whether Estepona's price momentum continues as inventory of new-build completes. Some of the trailing 12-month price strength reflects buyers competing for limited new-build pre-launch stock — that dynamic should ease as Q2/Q3 completions hit the market.
Whether Marbella inventory loosens. Our internal pipeline suggests a moderate volume of well-positioned Marbella apartments coming to market in Q2 from owners who've held since 2018–2020 and are now ready to crystallise gains. If this materialises, mid-budget Marbella shortlists will improve.
Comunidad-fee inflation. Energy costs, gardener wages, and insurance premiums have all risen materially over 24 months. Comunidad budgets will reflect this in 2026 AGM cycles. Owners should expect 5–12% comunidad inflation; buyers should ask explicitly about the next-year budget at the viewing stage.

The pieces this report links into

Methodology note

Where this report references public data (transaction volumes, price indices, foreign-buyer share, new-build share), the source is one of: Mitma's Estadística de Transacciones Inmobiliarias, the Registradores' Estadística Registral Inmobiliaria, Banco de España's Índice de Precios de Vivienda, or INE's housing series. Q1 2026 data was published in stages between April and May 2026 depending on the source.

Where this report references our own portfolio observations (which apartments we're seeing, which buildings show maintenance backlogs, how a specific neighbourhood is moving), the source is the Glaser Real Estate team's direct visibility across our 487-listing curated portfolio. This is observational and acknowledged as such; it complements rather than replaces the public data sources above.

Corrections welcome. If you spot a factual issue, email the team.

Costa del Sol apartment market report — Q1 2026.

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