Prices continue rising: second-hand housing in Málaga province reached record highs in 2025 (~ €3,842/m² on average), up ~13.8 % year-on-year.

Strong demand + limited supply: new developments aren’t keeping pace with demand, especially in coastal and desirable zones — which supports appreciation and secures long-term value.

International appeal remains high: foreign buyers (UK, Nordic, Central Europe, etc.) continue fueling demand in luxury and lifestyle segments.

Rental yield and flexibility: both holiday rentals and long-term rentals have healthy demand: coast + city + lifestyle + tourism combine to support 5–7% yields in many good locations.

Ongoing premium / luxury boom: high-end villas, well-equipped apartments (smart-home, energy-efficient, wellness amenities) remain especially desirable — both for high-net-worth individuals and holiday/second-home buyers.

Why Costa del Sol remains a top investment bet in 2026

Marbella & Benahavís — Premium / Luxury segment

  • These remain the “blue-chip” investment zones on the Costa del Sol: established, highly desirable, and with consistent demand from international buyers.
  • Prices are among the highest in the region — but so are expected returns: both in capital appreciation and in rental yields (especially luxury holiday rentals).
  • Ideal for long-term investment, premium clients, holiday rentals, resale value — or a luxury second home.
  • Best for: High-budget investors, long-term capital preservation + growth, luxury rentals / second homes.

Estepona (incl. New Golden Mile) — Growth + Value balance

  • Growing fast: Estepona is gaining traction as an investment hotspot thanks to infrastructure, new developments, and relative affordability compared with Marbella.
  • Entry-level compared to luxury zones: more accessible prices than Marbella/Benahavís, yet with good prospects for appreciation and rental income.
  • Good for both holiday rentals and long-term rentals — and appeal is rising among families, retirees, and foreigners seeking a more balanced lifestyle.
  • Best for: Medium-investment budgets, balanced yield vs risk, medium-term to long-term horizons, families or lifestyle-oriented buyers.

Mijas / La Cala de Mijas / Suburban & Inland Coastal Options — Value + Upside Potential

  • More affordable than coastal luxury zones — meaning lower entry cost and potentially better yield-per-invested-euro for mid-range investors.
  • Increasing demand for suburban/coastal-inland living, especially among retirees, remote workers, digital nomads — driven by lifestyle, calmer environment, and lower prices.
  • Opportunity for capital appreciation as infrastructure, transport links, and amenities improve, and as demand spreads beyond the coast.
  • Best for: Buyers on a budget, those seeking medium-term gain, retirees/remote workers, and anyone aiming for a balance of cost, comfort, and upside potential.

Choice Property Costa del Sol Recommendations for 2026

Málaga-based region, you’re well positioned to monitor deals early and act quickly. If I were you and investing now for 2026+, I would:

  • Focus on Estepona for a balanced investment (good price-to-value ratio, infrastructure improving, rental demand decent).
  • Keep an eye on Mijas / La Cala de Mijas — mid-term upside looks promising and entry costs are lower.
  • Consider a small, quality apartment or modest villa (rather than ultra-luxury) — that provides rental yield but also avoids the “top-of-market” risk.
  • Avoid chasing glamour only (unless budget is high) — because lifestyle-oriented, balanced investments tend to offer better risk-adjusted returns long-term.

Key Facts 2026 Outlook

  • Property prices in Málaga province hit record highs in 2025, rising ~14% year-on-year.
  • Demand remains strong, especially from foreign buyers (UK, Nordic, Central Europe).
  • Supply is tight, especially for new builds → supports further price growth in 2026.
  • Holiday rentals + long-term rentals both offer solid returns (typically 5–7% gross).
  • Luxury segment (Marbella/Benahavís) continues to outperform with strong international demand.

Best Investment Areas for 2026

1. Estepona — Best Overall Value

  • Fastest-growing demand outside Marbella.
  • Modern new developments, improving infrastructure.
  • Great balance of price, rental returns, and appreciation potential.

2. Mijas / La Cala de Mijas — Best for Mid-Budget Investors

  • More affordable than Marbella/Estepona.
  • Strong rental appeal for retirees, remote workers, and families.
  • Good upside as the coastal-inland belt develops.
  • Mid-priced apartments or townhouses in La Cala / Mijas (best ROI per euro invested).

3. Marbella / Benahavís — Best High-End Investment

  • Safest long-term capital preservation.
  • Highest demand from wealthy international buyers.
  • Strong luxury rental income if properly located.
  • 🎯 Best Investment Types for 2026
  • New-build or nearly new apartments in Estepona (modern amenities = higher rental demand).