Andalusia 2026: economic vitality and quality of life in southern Spain
In 2026, Andalusia combines two assets that rarely go together: a dynamic economy and a recognized quality of life. For a real estate project, this dual momentum changes everything: the region is no longer just a holiday destination, but a genuine place to live and work in the long term.
For international buyers, this means:
- a more liquid property market in the major urban areas;
- opportunities in municipalities still in transition;
- a wide variety of buyer profiles: families, investors, digital nomads, active retirees;
- constantly improving infrastructure (transport, healthcare, education, digital).
Malaga consolidates its role as a tech hub
At the heart of this transformation, Malaga is confirming its status as the technology capital of southern Spain. Around Málaga TechPark, the city attracts startups, R&D centers and subsidiaries of international groups.
In concrete terms, this translates into:
- the creation of qualified jobs in digital, engineering and innovative services;
- an influx of Spanish and foreign executives, often young and mobile;
- increased demand for well-located, connected and comfortable housing.
Malaga’s growing presence at major innovation events, such as the Transfiere 2026 trade fair, reinforces its image as an open, creative and internationally oriented city.
For a real estate project in Malaga, investing close to the areas served by public transport linking the technology park to the city center is becoming particularly strategic:
- neighborhoods with strong rental demand;
- medium-term capital appreciation prospects;
- appeal for remote workers who want to alternate between on-site and remote work.
Market benchmarks (second home segment):
- In Málaga, the average requested property is around €746,000 for 402 m² (≈ €1,856/m²). This average reflects spacious houses often sought after on the outskirts.
- Foreign demand is particularly concentrated among the French (15%), Belgians (9%), Germans and Dutch (8% each), with a median price close to €329,000 for 115 m².
Residential appeal boosted by the return of foreign buyers and remote workers
After the pandemic break, Andalusia is regaining its role in 2025–2026 as a major international residential market. Foreign buyers are returning, with a variety of profiles:
- French, Belgian, Dutch or Scandinavian buyers looking for a main residence in the sun;
- British buyers reorganizing their post-Brexit plans, often focusing on properties with outdoor space;
- digital nomads, attracted by the climate, connectivity and cultural life.
At the same time, remote work has taken root for the long term. Many working people now choose:
- to live in Andalusia for part of the year, while keeping a foothold in their home country;
- or to settle there full-time, looking for a good internet connection, a healthy environment and nearby services.
For these new residents, Andalusia ticks several boxes:
- generous sunshine and mild winters;
- a cost of living generally lower than in the major metropolises of Northern Europe;
- a welcoming living environment, shaped by festivals, outdoor life and gastronomy.
This pressure on demand is reflected in prices, particularly on the coast and in large urban areas. It is becoming essential to:
- carefully compare micro-neighborhoods;
- assess real travel times (transport, traffic jams, access to schools);
- anticipate local regulations on tourist rentals if you are considering mixed use.
Andalusian lifestyles by urban area
Andalusia is far from a uniform postcard image. Between Seville, Malaga, the Costa del Sol and inland towns, the different lifestyles vary considerably: daily pace, price per m², atmosphere, relationship to tourism.
To refine your project, it is helpful to think in terms of major urban areas rather than just provinces. Each hub structures a group of medium-sized towns, villages and connected rural areas.
Seville: cultural renaissance and major urban projects
As the regional capital, Seville has been experiencing a real renaissance in recent years. The city is enhancing its historic heritage while launching urban projects that modernize its neighborhoods and transport options.
Notable developments include:
- a dense cultural offering (theaters, festivals, museums, concerts) throughout the year;
- redevelopment of former industrial or working-class neighborhoods;
- the development of soft mobility and green public spaces.
This momentum is fueling strong residential demand:
- local families wishing to stay close to the center;
- young professionals attracted by urban life;
- foreign buyers sensitive to Seville’s architectural charm and art of living.
For a real estate project in Seville, it is relevant to:
- identify neighborhoods in the midst of transformation, still affordable but well connected;
- analyze the educational offering and local services;
- take into account tourism seasonality (Holy Week, Feria), which can affect the tranquility of certain areas.
Market benchmarks (second home segment):
- In Seville, the average requested property is around €671,000 for 245 m² (≈ €2,739/m²).
- Recorded foreign demand is led by the French (30%), followed by the United States (12%) and the United Kingdom (11%), with a median price of around €260,000 for 194 m².
Malaga: post-pandemic momentum and significant price increases
In Malaga, the post-pandemic period has acted as an accelerator. The city has capitalized on:
- its image as a cultural destination (museums, street art, festivals);
- its seafront and climate;
- the development of its digital ecosystem.
Result: property values have seen a sharp increase of around 21 to 22% over 12 months at the beginning of 2026 in the most sought-after areas.
This growth reflects:
- tension between limited supply in the city center and on the seafront;
- the upscaling of certain neighborhoods;
- the arrival of higher international purchasing power.
For buyers, this implies:
- clearly defining their priorities (sea view, neighborhood life, accessibility, budget);
- considering emerging neighborhoods or nearby municipalities with better medium-term value potential;
- factoring in additional costs (co-ownership, renovation, energy performance).
Malaga’s momentum is not limited to the city center: the adjacent Costa del Sol also benefits from this trend, with coastal villages repositioning themselves between tourism, second homes and year-round living.
Lifestyles: conviviality and living heritage
Beyond the numbers, what attracts people to Andalusia is a certain art of living: a slower pace, spontaneous sociability, and a strong cultural presence in everyday life. For a life project, these dimensions matter as much as square meters or price statistics. 😊
Festive calendar, regional cuisine and revitalized white villages
The Andalusian year is punctuated by a particularly dense festive calendar:
- spring and summer ferias, combining music, dance and conviviality;
- religious processions and traditional festivals deeply rooted in local life;
- contemporary cultural events (cinema, music, visual arts).
Regional cuisine is central to this identity:
- tapas to be shared on terraces, day and night;
- seafood on the coast, heartier fare inland;
- a strong move upmarket in dining, with creative bistros and authentic local eateries.
At the same time, many formerly declining white villages are experiencing a new lease of life thanks to:
- the return of local families attracted by more affordable prices;
- the arrival of creators, artisans and neo-rurals;
- the development of more discreet tourism, spread throughout the year.
For buyers, these villages offer:
- characterful houses, often in need of renovation, at still affordable prices;
- immersion in Andalusian culture, far from the summer crowds;
- an ideal setting for a guesthouse project or independent activity.
“Slow travel” effect and new boutique accommodations supporting local life
The rise of slow travel encourages more respectful tourism that takes time to discover areas at the rhythm of local residents. In Andalusia, this movement translates into:
- longer stays, sometimes outside peak season;
- exploration of inland areas and lesser-known villages;
- a preference for small-scale, highly distinctive accommodation.
New boutique accommodations are emerging as a result:
- village houses transformed into guest rooms;
- former farmhouses renovated as ecolodges;
- small boutique hotels in historic centers.
These projects, often led by couples or families changing careers, help to:
- bring village centers back to life;
- support local shops;
- preserve built heritage by putting it back at the heart of the local economy.
For a foreign buyer, this can be a great opportunity, provided that you:
- study local tourism regulations carefully;
- assess the real seasonality of demand;
- plan a realistic renovation budget, especially for older buildings.
Combined with remote work and the rise of “workation” (working from a holiday destination), this trend is opening up new ways of living in Andalusia, halfway between main residence, workplace and hospitality project.
