Why investing on the Costa del Sol in January 2026 is the best decision

January has always marked a turning point in the property sector, and January 2026 is no exception. The Costa del Sol continues to consolidate its position as one of Europe’s most dynamic real estate markets, with prices at historic highs, strong international demand and highly attractive opportunities for investors and buyers seeking quality of life by the sea.

The market remains at historic highs

The latest data shows that property prices in the province of Málaga have reached record levels. In 2025, the average property price exceeded €4,000/m², with significant year-on-year increases in key municipalities such as Marbella, Benahavís, Estepona, Fuengirola and Mijas.

Examples of year-on-year growth:

• Marbella and Benahavís: over €5,400/m² (+9% / +16%)

• Fuengirola: approx. €4,500/m² (+21%)

• Estepona: approx. €4,100/m² (+13%)

• Mijas: approx. €3,560/m² (+15%)

This steady and sustained increase in prices reflects both strong demand and the shortage of high-quality housing on the Costa del Sol, particularly in areas close to the sea and with premium services.

International demand remains a key driver

The Costa del Sol continues to attract buyers from all over the world, with strong demand from countries such as the United Kingdom, Germany, the Nordic countries, Belgium and the Netherlands, as well as growing interest from the United States and the Middle East. This international buyer profile is no longer focused solely on second homes or holiday properties, but increasingly on permanent residences, thanks to the Mediterranean lifestyle, exceptional climate and excellent international connectivity.

Rental yields and investment trends

One of the main attractions for investors is the average rental yield, which on the Costa del Sol typically ranges between 5% and 7% gross in many competitive areas. This combines rental income with the expectation of medium- to long-term capital appreciation.

In addition, the premium and new-build markets remain in very high demand, with buyers willing to acquire high-end properties featuring smart home systems, energy efficiency and luxury amenities.

Limited supply continues to drive price growth

One of the key forces pushing prices upwards is the insufficient supply of modern, well-located housing. Although construction activity exists, it is not enough to meet accumulated demand, meaning that prices are expected to continue rising steadily throughout 2026.

The new-build market is forecast to see moderate price increases — between 5% and 7% in 2026 — driven by structural factors such as limited land availability, construction costs and urban planning processes.

Current trends and key data

Example of notable transactions:
In January 2026, the sale of one of the most expensive penthouses on the Costa del Sol was recorded in Estepona for over €8 million, highlighting the strength of the region’s premium market.

Growth of the hotel sector:
Hotel investment in Málaga reached €309 million in 2025, reflecting the strong interest from major funds and operators in enhancing infrastructure linked to tourism and lifestyle on the Costa del Sol.

January 2026 is a strategic moment to invest or buy on the Costa del Sol thanks to:

• Record-high prices with an upward trend.
• Diversified and well-established international demand.
• Solid rental yields and strong expectations of capital growth.
• Limited supply versus growing demand.
• Ongoing interest in high-end and new-build segments.

If you want to maximise your investments or find the perfect property on the Costa del Sol, GR Estates is ready to help with personalised advice and access to the best opportunities on the market.

The GR Estates Team – Experts in finding the best opportunities on the Costa del Sol

Real estate agency in Fuengirola and the Costa del Sol.
www.gr-estates.com