Andalusian market 2026: controlled growth with pressure points
In 2026, the Andalusian property market remains generally on an upward trend, but without an overall boom. We observe:
- an average price increase, often lower than in Spain’s most expensive areas,
- localised pressure points on the coast and in some highly sought-after cities,
- a growing gap between “day-to-day” markets and highly touristic areas.
For a buyer, this means there are still opportunities, but the choice of city, neighbourhood and type of property becomes crucial.
Leading cities and coasts: Malaga around €3,300–3,620/m²
Among the main Andalusian cities, Malaga clearly stands out. A dynamic, well-connected city (high-speed train, international airport) with a rapidly expanding cultural and digital offer, it attracts equally:
- European retirees looking for a sunny living environment,
- remote workers and digital nomads,
- investors targeting holiday lets or long-term rentals.
Price levels now hover around €3,300 to €3,620/m², with an annual increase estimated at around +21 to +22% between 2025 and 2026 depending on the area and type of property.
On the second-home segment, demand data observed on Green-Acres nonetheless shows strong heterogeneity: properties sought in Malaga show an average price of around €746,000 for large floor areas (around 402 m²), clearly positioning the market towards family houses or villas rather than small city apartments.
To get a sense of the type of properties typically targeted by this clientele, you can consult, for example, the page dedicated to the city of Malaga: houses and apartments for sale in Malaga.
In practice:
- in the centre and in the most desirable districts near the sea, prices can far exceed the average,
- in some outlying or regenerating neighbourhoods, values remain more affordable but are rising quickly,
- pressure on the existing stock is also driving the development of new projects, sometimes at already high price levels from launch.
Across the Andalusian coasts as a whole, the same trend can be seen: proximity to the sea, transport links and touristic appeal push prices up, 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 increases.
In 2025–2026, several localities in Huelva and Malaga thus exceed +20% price growth 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 of the Axarquía, combining a historic town, proximity to the sea (Torre del Mar) and prices that are still lower than in Malaga proper,
- Casares – between Estepona and Sotogrande, highly valued 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 sun and sea, but at still varied price levels. In Algarrobo, properties requested are around €311,000 for houses of about 181 m², a mid-range budget that is more accessible than in the heart 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 concerns comfortable floor areas (almost 190 m² median) for budgets of around €262,000. This profile clearly illustrates the search for a compromise between space, climate and softer prices than in Malaga proper, while still being just minutes from the sea.
To see the types of properties attracting buyers, you can consult the local selection: property in Vélez-Málaga.
Casares occupies a somewhat different, more upmarket position, with houses of around 137 m² requested for about €385,000. The municipality clearly targets a segment of well-equipped second homes, often in complexes with pools, golf courses or sea views.
Conversely, Fuengirola illustrates the pressure in highly touristic markets on the Costa del Sol: demand is focused on more compact properties (around 107 m²) with average prices of around €448,000, reflecting a clientele looking for well-located apartments suited to holiday lettings. The features of the properties sought can be seen for example here: property in Fuengirola.
These increases reflect:
- spillover demand from already very expensive municipalities,
- the appeal of quieter lifestyles but still by the sea,
- the rise of buy-to-let 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 change 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 particularly marked in the high-end segments, especially on the Costa del Sol.
Costa del Sol luxury: robust international demand
In the luxury segment, the markets of Marbella and Benahavís have a special status. You will find there:
- contemporary villas with sea views and very high-end features,
- gated residences with services (security, pools, spas, concierge),
- rare properties in exceptional locations that are difficult to reproduce.
Demand data from Green-Acres illustrates this move upmarket: in Marbella, properties sought reach an average of nearly €1.54m for generous floor areas of around 268 m², while in Benahavís, a stronghold of luxury villas, average budgets exceed €2.6m for properties of around 536 m².
To get a feel for the level and type of products that structure this very 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 properties dominate.
Two key elements explain this area’s resilience:
- a diversified international demand (Northern Europe, United Kingdom, Middle East, Latin America, etc.),
- a scarce supply, limited by available land and by stricter local regulations on new permits.
Across Malaga province as a whole, Green-Acres statistics show strong foreign appetite, with French buyers in particular leading demand (around 15% of foreign searches), followed by Belgians, Germans, Dutch, then buyers from the United States and the United Kingdom. Median budgets are often between €295,000 and €410,000 depending on nationality, for intermediate floor areas of 100 to 125 m², confirming the importance of family second homes.
The result is that even in periods of uncertainty, these premium markets often show:
- fewer price declines,
- a capacity to rebound quickly,
- a marked 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” positioning,
- decent liquidity if the property meets the right criteria (location, views, finishes),
- high-end rental potential, particularly for short-term lets.
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, for example, we are seeing investments of around €72m in Marbella in residential projects due for completion around 2027. These operations often target:
- an international clientele with high purchasing power,
- high standards of sustainability, design and services,
- locations that capitalise on sea views, access to golf courses or proximity to the centre.
For a buyer, these new developments offer several advantages:
- staggered payments over several years,
- comfort and energy performance in line with current standards,
- potential for 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, possible price adjustments),
- a solid understanding of the local market over a 3–5 year horizon.
Spain 2026: a macro view
To properly interpret the situation in Andalusia, it is useful to place the region within the broader Spanish national trend.
Expected national price growth in 2026
Forecasts for Spain in 2026 point to an average annual price increase of around +7%, subject to economic conditions and interest rates.
Several factors support this scenario:
- still-solid demand in major cities and on the coasts,
- a supply of new builds that does not always cover needs in tight markets,
- the country’s attractiveness for retirees and European 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 push prices upward.
This is particularly 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, closely followed by French (13%) and German (12%) buyers, with median budgets often between €138,900 and €165,000 and generous floor areas (110 to 140 m²). This is a clear sign 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 knock-on effect
Another key factor: the performance of major urban markets in Spain, where prices already exceed €3,900/m² (Madrid, Barcelona and several very tight regional capitals).
These markets can:
- pull the national average upwards,
- push some buyers to turn to more affordable alternatives such as Andalusia,
- strengthen Spain’s image as a solid property market at the European level.
For Andalusia, this results in:
- a continued influx of new buyers, particularly from abroad,
- upward pressure on already attractive areas,
- a gradual spread of demand to secondary municipalities, some of which are experiencing 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, you need to think in terms of both quality of life and long-term wealth strategy, relying on sound local knowledge… or on specialised guidance.
