Costa del Sol Leads Spain’s Property Market with Record Price Growth

The average price along the coast of Malaga province has risen by 14.3% in the last year — double the national average.

The property market along the coast of Malaga province is outperforming the rest of Spain, driven by a combination of demand for primary residences and the increasing popularity of second homes. According to a new report by appraisal company Tinsa (now operating under the name Accumin), the average price of coastal property nationwide rose by 7.2% in the last 12 months, reaching 1,848 euros per square metre. However, in the case of second homes specifically, the increase was even more pronounced — 12.1% — with the average price reaching 2,970 euros per square metre.

Malaga province has emerged as the standout performer. It recorded the sharpest rise among all coastal regions, with a 14.3% annual increase bringing the average to 2,612 euros per square metre. Four of the 14 municipalities in Spain with the highest year-on-year growth in coastal property values are located here: Mijas (18.4%, now at 2,481 €/m²), Torremolinos (17.8%, 2,845 €/m²), Vélez-Málaga (17.4%, 2,050 €/m²), and Estepona (17.4%, 2,577 €/m²). Meanwhile, Marbella continues to be the province’s most expensive market, with properties averaging 3,262 €/m² — placing it among the top 15 priciest coastal municipalities in the country.

While these prices are already high, they are significantly exceeded in the second-home market segment. Across Malaga province, second homes now average 4,000 €/m². In specific coastal zones, the figures are even more striking: 4,150 €/m² between Torremolinos and Mijas, 4,100 €/m² from Marbella to Manilva, and 4,000 €/m² in the Axarquía region. The Balearic Islands remain the most expensive overall, with second homes averaging 6,650 €/m², followed by Malaga, Vizcaya (3,700 €/m²), Girona (3,600 €/m²), and Alicante (3,350 €/m²). According to Cristina Arias, director of research at Accumin, the sharp price increases reflect a growing focus on high-end construction targeting buyers with stronger purchasing power, enabling developers to cover higher production costs in a demanding market.

Despite the rapid price increases, experts believe that second-home values still have further room to grow in most of the country. Accumin’s research indicates that 94% of coastal locations — including the entire Costa del Sol — have not yet reached their price ceiling. Only a few highly saturated tourist zones such as parts of Tarragona, Ibiza, Formentera, and Gran Canaria are showing signs of price stabilisation. The growing demand for holiday homes is also placing upward pressure on the primary residential market, leading to a supply squeeze in areas where second homes dominate the local offering. Cristina Arias notes that this overlapping demand is creating competition between residential buyers and investors, contributing to rising prices across the board.

Malaga province is now second only to Alicante in terms of property sales volume, with 24,004 transactions recorded over the past 12 months — a 6.3% year-on-year increase. Foreign buyers account for between 60% and 70% of second-home purchases along the coast, particularly in areas such as Marbella, Estepona, and Mijas. While Fuengirola and parts of Malaga city see stronger domestic demand from Madrid and other Andalusian provinces, most buyers are international — predominantly from the United Kingdom, Germany, Belgium, the Netherlands, Sweden, Ireland, Poland, and the Middle East.

Sur In English, June 2025