The Costa del Sol property market has delivered strong returns for investors over the past several years. But with prices at record levels in early 2026, many buyers are asking the same question: is now still a good time to invest, or has the best of the growth already passed?
This guide looks at where the market stands in 2026, what is driving demand, and what international buyers considering Estepona need to understand before making a decision.
Where the Market Stands in 2026
The Malaga property market began 2026 at record levels. Average asking prices in Malaga city reached €3,667 per square metre in February 2026 — an annual increase of 11.1% year-on-year, according to Idealista. Across the wider province, prices range between €4,700 and €4,800 per square metre on average, with prime locations such as Marbella exceeding €5,000 to €8,000 per square metre.
For 2026, analysts forecast continued growth of 5 to 9 percent across the Costa del Sol, a moderation from the rapid double-digit growth of 2024 and 2025 — but still well above the European average.
Why the Costa del Sol Keeps Outperforming
Property markets do not sustain growth without structural reasons. The Costa del Sol has several that are unlikely to change in the near term:
Limited coastal supply
The Spanish coastline is protected by strict planning regulations. New beachfront development is heavily restricted, and the best locations are already built. Supply cannot keep pace with demand — which is the fundamental driver of price growth in any market.
Strong international demand
Buyers from the UK, Netherlands, Belgium, Germany, Scandinavia and increasingly the United States and Gulf countries continue to drive the market. The market feels more international than ever in 2026, with North American accents increasingly common and German buyers emerging as a growing force. This international base gives the Costa del Sol a resilience that purely domestic markets lack.
Infrastructure investment
Malaga has transformed over the past decade. A thriving technology hub, world-class cultural institutions, major international companies and an expanding airport have made the province attractive not just for holidays but for relocation and long-term living. Malaga-Costa del Sol Airport scheduled 10.4 million seats for the 2025 to 2026 winter season, 6.1% more than the previous year.
Year-round tourism
The Costa del Sol is no longer a purely seasonal destination. With 320 sunny days per year and a growing calendar of events, golf, gastronomy and cultural tourism, demand for rental accommodation runs 12 months a year — which directly supports property values.
No buyer fees with Glaser Group
One cost that catches many international buyers by surprise is agent fees on the buyer side. Glaser Group charges no buyer fees — our fees are paid by the vendor. This means you can access our full service, local expertise and market knowledge without any additional cost as a buyer.
Glaser Group charges no fees to buyers. Our full service — property search, viewings, negotiation, legal coordination — costs you nothing. Our fee is paid by the vendor.
Is it Still Worth Buying in 2026?
The honest answer is: it depends on your objectives. Here is a clear-eyed view of the different scenarios:
For lifestyle buyers
If you are buying a property you will use and enjoy — as a holiday home, a base for extended stays, or a future retirement home — 2026 remains a good time to buy. Waiting rarely leads to lower prices on the Costa del Sol. Predictions for the Costa del Sol are for further rises of 5–9% in 2026, depending on specific locations and property types. Buying now rather than waiting 12 months typically costs less than the price increase over that period.
For rental income investors
Properties in Estepona and across the Costa del Sol continue to generate strong holiday rental demand. The combination of year-round tourism, 14.6 million annual visitors to the Costa del Sol and limited rental supply makes this a compelling market for buy-to-let investors. The key is choosing the right property — location, layout and presentation matter significantly for rental income.
For capital growth investors
The Costa del Sol has delivered consistent capital growth since recovering from the 2008 crisis. Cumulative house price growth since the 2008 crisis lows in the Golden Triangle exceeds 50%. While the rapid growth of 2024 and 2025 is moderating, the structural supply-demand imbalance means further growth is widely expected through 2026 and beyond.
What to be realistic about
Property investment always carries risk. Global economic shifts, interest rate changes and local regulatory changes can affect returns. The new short-term rental regulations (VUT licence, NRUA national registration, community of owners approval) add compliance requirements that buyers should understand before purchasing with rental income in mind. Glaser Group advises all investment buyers on these requirements as part of our service.
What Makes a Good Investment in Estepona?
Not all properties perform equally. Based on our experience in the Estepona market, the properties that deliver the strongest combination of capital growth and rental income tend to share certain characteristics:
- Location within the city — proximity to the beach, marina, golf or key amenities consistently commands a premium and sustains demand
- Sea views — properties with verified sea views achieve significantly higher rental rates and resale values
- Modern finish — new build and recently renovated properties outperform dated stock for both rental income and resale
- Community facilities — pool, gym, concierge and security are expected by the international buyer market
- Parking — often overlooked, but a significant factor in both rental appeal and resale value on the Costa del Sol
- Licence-ready — for rental income buyers, confirming the property can obtain a VUT licence and community approval before purchase is essential
The Glaser Group Approach
We have been based in Benalmadena since 2018 and cover the full Costa del Sol from Malaga to Sotogrande. Our approach to investment property is straightforward: we help you find the right property for your objectives, negotiate the best price, and coordinate with your lawyer through to completion.
We do not push properties based on commission. We work with the full market — resale, new build and off-plan — and our advice is based on your specific situation, not our inventory.
If you are considering property investment in Estepona in 2026, we are happy to have a no-obligation conversation about what the market looks like at the moment and what opportunities are available.
