2026 Market in Andalusia: Controlled Growth with Pockets of Pressure
In 2026, the Andalusian property market remains broadly upward trending, but without runaway growth across the board. We are seeing:
- average price increases, often lower than in Spain’s most expensive areas,
- localised hotspots of pressure on the coast and in a few highly sought-after cities,
- a widening gap between “everyday” markets and highly touristic areas.
For a buyer, this means there are still opportunities, but the choice of city, neighbourhood and property type is becoming critical.
Leading cities and coasts: Malaga around €3,300–3,620/m²
Among the major Andalusian cities, Malaga clearly stands out. A dynamic, well-connected city (high-speed rail, international airport) with a fast-growing cultural and digital scene, it attracts equally:
- European retirees looking for a sunny living environment,
- remote workers and digital nomads,
- investors targeting tourist or long-term rentals.
Price levels now sit at around €3,300 to €3,620/m², with annual growth estimated at around +21 to +22% between 2025 and 2026, depending on the area and type of property.
In the second-home segment, request data from Green-Acres shows strong heterogeneity: properties sought in Malaga have an average asking price of around €746,000 for large floor areas (around 402 m²), a clear bias towards family houses or villas rather than small urban apartments.
To get an idea of the typical properties targeted by this clientele, you can, for example, check the dedicated page for the city of Malaga: houses and apartments for sale in Malaga.
In practical terms:
- in the centre and the most sought-after neighbourhoods near the sea, prices can be significantly higher than the average,
- in some outlying or regenerating neighbourhoods, values are more affordable but rising fast,
- pressure on the existing stock is also driving the development of new projects, sometimes at already high levels from launch.
Across the Andalusian coastline, the same pattern can be seen: proximity to the sea, accessibility and touristic appeal push prices upwards, particularly on the Costa del Sol.
Huelva and Malaga: municipalities with more than +20% per year
Beyond provincial capitals, it is often medium-sized or coastal municipalities that show the strongest annual price increases.
In 2025–2026, several localities in Huelva and Malaga recorded increases of more than +20% year-on-year, including:
- Algarrobo – a small coastal town on the eastern Costa del Sol, highly sought after for its proximity to Malaga and its quieter atmosphere,
- Vélez-Málaga – a major centre in the Axarquía, combining a historic town, proximity to the sea (Torre del Mar) and prices still lower than in Malaga proper,
- Casares – between Estepona and Sotogrande, highly sought after for its residential complexes with views, golf courses and premium services,
- Fuengirola – a well-equipped seaside resort with strong demand for second homes and holiday rentals.
Property searches on Green-Acres confirm the role of these areas as “overflow zones” for foreign clients seeking sea and sun, but at still diverse price levels. In Algarrobo, the properties requested are around €311,000 for houses of about 181 m², an intermediate budget that is more accessible than in the core of the Costa del Sol.
An overview of the properties targeted by these buyers is available here: property listings in Algarrobo.
In Vélez-Málaga, demand mainly focuses on comfortable floor areas (around 190 m² median) for budgets of around €262,000. This profile illustrates the search for a compromise between space, climate and lower prices than in Malaga city, while still being only a few minutes from the sea.
To see the types of properties attracting buyers, you can browse the local selection: property in Vélez-Málaga.
Casares occupies a slightly different, more upmarket position, with houses of about 137 m² in demand at around €385,000. The municipality clearly positions itself in the segment of well-equipped second homes, often within complexes with swimming pools, golf courses or sea views.
Conversely, Fuengirola illustrates the pressure on highly touristic markets on the Costa del Sol: demand concentrates on more compact homes (around 107 m²) for average prices of about €448,000, reflecting a clientele looking for well-located apartments suited to holiday lets. The characteristics of the properties sought can be seen, for example, here: real estate in Fuengirola.
These increases reflect:
- spillover demand from already very expensive municipalities,
- the appeal of quieter lifestyles while still being by the sea,
- the rise of rental investment, often driven by foreign buyers.
For a purchase project, this means carefully anticipating your time horizon: some municipalities remain attractive in the short term, but rapid price growth can shift the risk/return balance over a few years.
Premium segments and foreign investment
Andalusia, and in particular its coastline, remains a major playground for international buyers. Their presence is especially marked in the high-end segments, particularly on the Costa del Sol.
Costa del Sol luxury: robust international demand
In the luxury segment, the markets of Marbella and Benahavís hold a special status. Here you will find:
- contemporary villas with sea views and very high-end features,
- gated residences with services (security, pools, spas, concierge),
- rare properties in exceptional, hard-to-replicate locations.
Request data on Green-Acres illustrates this upmarket trend: in Marbella, the properties sought average nearly €1.54 million for generous floor areas of about 268 m², while in Benahavís, a stronghold of luxury villas, average budgets exceed €2.6 million for properties of around 536 m².
To gauge the level and type of properties that structure this highly specific market, you can explore the listings in Marbella (property in Marbella) or in Benahavís (villas and houses in Benahavís), where contemporary villas, secure residences and architect-designed homes dominate.
Two key factors explain the resilience of this area:
- a diversified international demand (Northern Europe, the United Kingdom, the Middle East, Latin America, etc.),
- a scarce supply, limited by available land and stricter local planning regulations for new permits.
Across the province of Malaga as a whole, Green-Acres statistics show strong foreign appetite, with French buyers topping the list (around 15% of foreign searches), followed by Belgians, Germans, Dutch, and buyers from the United States and the United Kingdom. Median budgets are often between €295,000 and €410,000 depending on nationality, for mid-sized properties of 100 to 125 m², confirming the importance of family second homes.
As a result, even in times of uncertainty, these premium markets often show:
- fewer price drops,
- a capacity to rebound quickly,
- strong interest in unique properties or those designed by renowned architects.
For a buyer, this segment is not the most affordable, but it can offer:
- a long-term “wealth preservation” position,
- decent liquidity if the property ticks the right boxes (location, view, finishes),
- high-end rental potential, particularly for short stays.
New developments and capital: projects through to 2027
The dynamism of the Andalusian market is also reflected in the arrival of new capital and major developments.
On the Costa del Sol, we are seeing investments of around €72 million in Marbella in residential projects due for completion around 2027. These schemes typically target:
- an international clientele with strong purchasing power,
- high standards of sustainability, design and services,
- locations that maximise sea views, access to golf courses or proximity to the town centre.
For a buyer, these new developments offer several advantages:
- staggered payments over several years,
- comfort and energy performance aligned with current standards,
- potential capital gains between reservation and completion, if the market remains buoyant.
But they also involve:
- a thorough review of the developer (financial strength, track record),
- a careful reading of the contract (deadlines, guarantees, potential price adjustments),
- a solid understanding of the local market over a 3–5 year horizon.
Spain 2026: macro view
To properly interpret the situation in Andalusia, it helps to place the region within the broader Spanish national trend.
Expected national price increase in 2026
Forecasts for Spain in 2026 point to an average price increase of around +7% over the year, subject to economic conditions and interest rates.
Several factors underpin this scenario:
- still-solid demand in major cities and along the coasts,
- a new-build supply that does not always meet needs in high-pressure areas,
- the country’s appeal to European retirees and investors compared with other Mediterranean destinations.
This does not mean uniform growth everywhere: some rural or inland areas may remain stable or even see adjustments, while the most dynamic hubs continue to drive prices higher.
This is especially true for Western Andalusia: in the province of Huelva, Green-Acres data highlights a market that is still more affordable but already internationalised. Portuguese buyers account for nearly 19% of foreign demand, followed closely by the French (13%) and Germans (12%), with median budgets often between €138,900 and €165,000 and generous floor areas (110 to 140 m²). This signals that the region also attracts those looking for a cheaper alternative to the Costa del Sol while remaining close to the Atlantic Ocean.
Major markets above €3,900/m²: a spillover effect
Another key factor: the performance of major urban markets in Spain, where prices already exceed €3,900/m² (Madrid, Barcelona and several highly pressured regional capitals).
These markets can:
- pull the national average upwards,
- push some buyers to look for more affordable alternatives, such as Andalusia,
- reinforce Spain’s image as a strong real estate market at the European level.
For Andalusia, this translates into:
- a continuous influx of new buyers, especially foreigners,
- upward pressure on already attractive areas,
- a gradual spread of demand to secondary municipalities, sometimes with very strong growth.
If you are considering a purchase, the question is therefore not only “how much does it cost today?”, but also:
- “what is the potential of this area in 5 to 10 years?”,
- “what share of demand comes from international buyers?”,
- “how would this market react in the event of an economic slowdown?”.
In other words, it is about thinking both in terms of quality of life and long-term asset strategy, relying on a solid understanding of the local context… or on specialised support.
