Why Buying Is Unlikely to Become Cheaper
The Spanish property market is anything but cooling down. On the contrary: 2024 and 2025 show the strongest price increases since the previous real estate boom, and all major analysts expect prices to continue rising in 2026. This is especially true for the Spanish costas — the favourite regions among international buyers. The trend of increasing Property Prices on the Spanish Costas in 2026 is becoming apparent.
According to recent data, property prices in Spain rose by 8.4% in 2024. In the first quarter of 2025, prices were 12.2% higher year-on-year, based on the official price index of the Spanish Statistical Office (INE).
At the same time, coastal prices are breaking records. In 2025, appraisal firm Tinsa reported that the average price on the Spanish coast (primary and secondary residences) increased by 7.2% in one year, while second homes / holiday homes on the coast rose by 12.1%, reaching an average of €2,970/m².
In this blog, we explain:
- what the numbers show for 2024–2025,
- what to expect for 2026,
- why the costas are rising faster than the rest of Spain,
- which regions are most relevant for buyers and investors,
- and what this means if you’re considering buying a property in Spain in 2026.
1. The Market Today: Strong Growth, No Bubble
Looking at data from INE and several research institutions, the trend is clear: property prices have been rising faster than inflation for years. In short:
- 2024: average price increase of 8.4% nationwide.
- Q1 2025: the average home was 12.2% more expensive than a year earlier; both new-build and resale markets showed similar growth.
Tinsa reports accelerated growth along the coast:
As we look forward to 2026, understanding the trends in Property Prices on the Spanish Costas in 2026 will be crucial for potential buyers.
- +7.2% for the average coastal market (primary and secondary homes).
- +12.1% for second homes / holiday homes on the coast, with an average price of €2,970/m².
On top of that, certain cities and provinces show exceptionally strong development. In June 2025, the city of Alicantereached a record of €2,435/m², a 16.4% year-on-year increase, according to Idealista.
Nationwide, Spain also hit a record: Bankinter’s analysis based on Idealista data shows that in October 2025, the average resale price reached €2,555/m², representing an impressive 15.7% annual increase.
Importantly, several sources — including BBVA Research and Bankinter — describe the market as “overheated” due to severe supply shortages, but not a speculative bubble like in 2007. Growth is largely driven by supply-demand imbalance, relatively favourable financing conditions, and a strong economy.
2. What Do BBVA, Bankinter, Singular Bank and REBS Expect for 2026?
Let’s look at what the major analysts predict.
Investors should take note of the rising Property Prices on the Spanish Costas in 2026 as it may influence their buying decisions.
BBVA Research
In its Real Estate Watch report (May 2025), BBVA forecasts:
- +7.3% property price growth in 2025
- +5.3% growth in 2026
based on gradually declining interest rates and continued economic strength.
A more recent Observatorio Inmobiliario report (October 2025) — covered by El País — goes even further, predicting +10% in 2025 and +7% in 2026, driven by a persistent housing shortage.
Bankinter
Bankinter expects:
- +5% in 2025
- +3% in 2026
after an estimated 8–11% increase in 2024. In short: continued growth, but slightly slower than the 2024–2025 boom.
Singular Bank
Singular Bank forecasts a cumulative increase of around 9% for 2025–2026, meaning roughly 4–5% per year.
REBS & University of Málaga (Pulsímetro Inmobiliario)
This respected property indicator projects +5–6% price growth in 2026, alongside rising transaction and mortgage volumes.
The Combined Picture
All forecasts point toward:
- continued price growth,
- most national projections between +3% and +7%,
- with an upward scenario of around +7% in 2026 in supply-constrained regions.
And the costas? They almost always outperform the national average.
3. Why the Spanish Costas Rise Faster Than the Rest of Spain
The coastal regions operate as a separate engine within the Spanish property market. Four structural forces drive this.
3.1 Strong International Demand
According to data from the Ministry of Transport (via Realting), 60,822 property purchases in 2024 were made by non-residents — around 9% of all sales nationwide.
Along the costas, this share is far higher. In Q1 2025:
- 22% of purchases in the Balearic Islands were by non-residents
- 21% in the Canary Islands
- 19% in the Valencian Community (Costa Blanca)
- 14% in Murcia (Costa Cálida)
This means coastal property prices are strongly influenced by international buyers, who are less sensitive to Spanish economic cycles.
3.2 Structural Supply Shortage
All major reports — BBVA, REBS, Bankinter — highlight the same issue: too little new housing is being built.
BBVA expects a rise in building permits in 2025 and 2026, but stresses that even with +16% and +13% increases, this remains insufficient to meet demand.
On the coast, the problem is even greater:
- protected natural areas,
- strict coastal laws,
- limited land,
- and slow licensing procedures
all create long-term scarcity.
3.3 Tourism and Rental Markets
Spain reached a tourism record in 2024 with more than 85 million visitors, many of whom stay along the costas.
For investors, this means:
- high occupancy rates,
- growing long-stay and winter rental markets,
- strong income potential,
- and rising long-term rental demand.
However, this also pushes property prices further up in already tight coastal markets.
3.4 Rising Demand for Second Homes
Tinsa’s Vivienda en Costa 2025 report shows that second homes on the coast rose by 12.1% in price, nearly double the overall coastal market.
This is exactly the segment where many international buyers — including Akunas clients — are active.
4. Region-by-Region Overview of the Main Costas
Below we zoom in on the regions most relevant for buyers and investors: Costa Blanca, Costa Cálida, and Costa del Sol, plus a brief look at the islands.
4.1 Costa Blanca (Alicante Province)
Alicante is one of Spain’s fastest-growing property markets:
- In June 2025, the average price reached €2,435/m²,
- a 16.4% year-on-year increase, according to Idealista.
Given strong international demand, limited supply, and excellent accessibility, a price increase of 5–8% in 2026 is a realistic scenario.
4.2 Costa Cálida (Murcia Region)
The Costa Cálida is rapidly gaining popularity as a more affordable alternative to Alicante or Málaga. Modern new-build projects around San Javier, San Pedro del Pinatar, Los Alcázares, and the Santa Rosalía Lake & Life Resort are attracting buyers in large numbers.
International demand is rising fast: in Q1 2025, 14% of all property purchases in Murcia were made by non-residents.
Expected price growth for 2026: 5–7%.
4.3 Costa del Sol (Málaga Province)
The Costa del Sol remains Spain’s top luxury property market. Málaga consistently ranks among the provinces with the highest price increases — in some 2025 datasets around 19–20% year-on-year.
Marbella, Estepona, Benahavís and Mijas are international hubs attracting high-net-worth buyers.
Expected price growth for 2026: 5–9%, depending on location and property type.
4.4 Balearic & Canary Islands
These are the most expensive and supply-constrained markets in Spain, driven by:
- strict construction and rental rules,
- extremely limited land,
- strong international demand.
Price growth of 6–10% in 2026 is likely, though strong regulation may create local fluctuations.
5. What Does This Mean If You Want to Buy in 2026?
Let’s take an example: A new-build property priced at €300,000 in 2025.
Depending on market development:
- 3% increase → €309,000
- 5% increase → €315,000
- 7% increase → €321,000
- 9% increase → €327,000
In other words: waiting may easily cost you €15,000 to €25,000, excluding taxes, legal fees, furnishings, or potential interest-rate changes.
At the same time, BBVA and REBS expect new-build supply to increase — but not enough to close the structural gapbetween supply and demand.
More choice does not mean lower prices.
6. What Does This Mean for Investors?
For investors seeking capital growth and rental income, the Spanish coastal market remains highly attractive.
Key advantages:
1. Strong Capital Appreciation
Most forecasts point to 5–7% annual price growth in dynamic regions, with higher upside in hotspots.
2. Rental Growth
Spain’s rental market is under pressure. In 2024, rental prices rose 11.5% nationwide, with the strongest increases in regions including Valencia (Costa Blanca) and Catalonia.
3. Appeal of New-Build Properties
New-build homes offer:
- higher energy efficiency,
- lower maintenance costs,
- strong rental appeal,
- favourable developer payment plans.
4. Diversification
In an uncertain global financial climate, Spanish coastal property remains a stable asset for wealth diversification.
7. Risks That Could Slow Down Growth in 2026
Every market has risks. The key ones to consider:
- Local regulation of holiday rentals, especially on the islands
- Economic shocks or global uncertainty
- Unexpected interest-rate increases
- Changes in tax or housing policies
Still, none of the major analysts currently predict a price decline; they foresee continued growth, though potentially at a slightly slower pace.
8. Summary for Akunas Clients: Is 2026 a Good Time to Buy?
Putting all available data together:
- Nationwide Spain is expected to see +3% to +7% price growth.
- The costas consistently outperform the national average, with typical +5% to +9% growth.
- Hotspots like Alicante, Málaga, and certain island markets may rise even faster.
For anyone considering a purchase in 2026, the key takeaway is:
All serious forecasts indicate further price increases in 2026 — not declines, especially not on the Spanish costas.
Waiting in the hope of better prices is, based on current evidence, a risky assumption.
The smarter approach is to focus on:
- the right location,
- a high-quality development,
- a financially sustainable plan,
- and professional guidance throughout the process.
9. How Akunas Supports You in This Market
As a specialist in new-build property on the Spanish costas, Akunas assists you with:
- selecting high-potential projects,
- understanding local regulations and market trends,
- full guidance from viewing to notary,
- access to trusted legal and fiscal partners,
- and post-purchase support.
In a market where prices are almost certain to continue rising, the goal is not just to “buy now,” but to buy well — in the right place, with the right project, at the right time.