Costa del Sol property market update | Q1 & Q2 2026

Every quarter, countless reports attempt to explain where the Costa del Sol property market is heading.

At Karen Dadonn TEAM, we believe numbers only tell part of the story. The most accurate picture comes from combining official market data with what we experience every day through conversations with buyers, sellers and investors across Marbella, Benahavís and Estepona.

After several years of extraordinary activity, the first half of 2026 marks a clear transition. The market hasn’t lost its strength, it has simply become more balanced.

Buyers have more choice, take more time to make decisions and negotiate with greater confidence. Sellers can still achieve outstanding results, but success now depends far more on positioning, presentation and, above all, pricing.

The official figures published throughout Q1 – Q2 2026 largely confirm what we have been witnessing on the ground.

A slower market doesn’t mean a weaker market

Residential transaction volumes eased during the first half of 2026, both in Andalucía and across Spain, compared with the exceptionally active market of 2025.

This distinction is important. Many headlines suggest the market is slowing dramatically. In reality, today’s figures are being compared with one of the strongest periods the Costa del Sol has ever experienced.

Rather than indicating a market correction, they reflect a return to a healthier and more sustainable pace.

Demand remains strong, particularly within the premium segment, but the urgency that defined previous years has gradually disappeared. For buyers, this creates more opportunities to compare properties carefully before making a decision.

For sellers, it means that launching a property onto the market is no longer enough. Strategy has become more important than ever.

Average prices remain strong, but every property tells its own story

Official regional statistics continue to show average property values across Málaga Province at historically high levels during 2026, with Marbella, Benahavís and Estepona remaining among Spain’s strongest-performing residential markets. However, we believe that averages should never be confused with individual market behaviour.

One of the most significant trends we are observing throughout 2026 is an increase in price adjustments on individual properties. This does not contradict the official data.

Regional statistics measure thousands of completed transactions across an entire province. Individual homes respond to something much more immediate: supply, competition and buyer expectations within their own segment.

As more properties gradually come onto the market and buyers become increasingly selective, pricing is naturally adjusting. Well-priced homes continue to generate strong interest and successful sales. Properties launched above today’s market expectations often remain available for longer before eventually adapting to current demand.

This is not a sign of a weakening market. It is simply supply and demand finding a new balance.

International buyers continue to shape the Costa del Sol

International demand remains one of the defining characteristics of the Costa del Sol property market.

British buyers continue to represent one of the largest international groups, followed by purchasers from the Netherlands, Belgium, Germany, France, Sweden, Poland, Romania and the United States. We also continue to see sustained interest from buyers across the Middle East and growing activity from Eastern Europe.

What has changed during 2026 is not where buyers come from. It is how they buy. Today’s purchasers are exceptionally well informed. They compare more properties. They analyse value more carefully. They negotiate with greater confidence. And above all, they expect realistic pricing from the very beginning.

Pricing has become probably the most powerful marketing strategy

In today’s market, pricing is no longer just one element of the sales process. It is the strategy itself. The first few weeks after launching a property remain the period when buyer interest is at its highest.

Homes that enter the market with realistic positioning generate stronger visibility, attract qualified enquiries and often achieve the best possible outcome within the first 60 days.

By contrast, properties launched above current market expectations tend to lose momentum, remain available for longer and frequently require later price reductions that could have been avoided. One of the biggest misconceptions among sellers is that starting with a higher asking price leaves room for negotiation. In reality, today’s buyers know the market remarkably well. They recognise value immediately. And they rarely overpay.

Our perspective

If there is one conclusion we draw from the first six months of 2026, it is this: the Costa del Sol market is not becoming weaker. It is becoming more balanced.

That is positive news for buyers, who now have more opportunities to make thoughtful decisions.

It is equally positive for sellers who approach the market with realistic expectations, professional marketing and a pricing strategy aligned with today’s conditions. The strongest properties continue to sell successfully, within 30-60 days. The difference is that today they sell because they are positioned correctly, not simply because demand exceeds supply.

Thinking about selling in 2026?

If you are considering selling your property in Marbella, Benahavís or Estepona, the most valuable question is no longer: “What is my neighbour asking for a similar property?”

The real question is: “What are qualified buyers willing to pay for my property today?”

At Karen Dadonn TEAM, we combine official market data with the insight that only comes from working with active buyers and sellers every day.

If you would like a confidential, professional assessment of your property’s current market position, we would be delighted to help.

Sources: this report combines official public data with first-hand market observations gathered through our daily activity across Marbella, Benahavís and Estepona. Official sources consulted: Ministry of Housing and Urban Agenda (MIVAU), College of Registrars of Spain, Spanish Notaries’ Statistical Portal, Idealista Market Reports (June 2026)