Spanish Property Market Report Q2 2026: Costa Blanca, Costa Cálida & Costa del Sol

Executive Summary:

46.43% of homes sold in Alicante Province were bought by foreign buyers

Almost one in every two homes sold in Alicante Province is now purchased by a foreign buyer. At the same time, buyers from Asia already represent 6.75% of all international property purchases in Spain, confirming that demand for Spanish real estate is becoming increasingly global.

This Spanish Property Market Report Q2 2026 focuses on the regions most relevant to international buyers: Costa Blanca, Costa Cálida and Costa del Sol, with specific attention to Alicante, Murcia, Málaga and the Balearic Islands.

Q2 2026 confirms the strength of Spain’s prime coastal property markets. Alicante Province, Málaga Province and Murcia all rank among the strongest international buyer markets in Spain, while the Balearic Islands remain one of the country’s highest-priced and most internationally driven residential markets.

Foreign demand reached a new historic high in Spain, with foreign buyers accounting for 15.98% of all residential property purchases during the second quarter. In absolute terms, this represents more than 26,800 transactions.

Alicante Province remains Spain’s leading international property market, with foreign buyers accounting for 46.43% of all residential purchases. Málaga Province, including the Costa del Sol, follows strongly at 37.01%, while Murcia, representing Costa Cálida, reached 23.71%. The Balearic Islands recorded 32.27% foreign demand.

At national level, the average property price reached a new all-time high of €2,487/m², with quarterly growth of +2.4% and annual growth of +9.2%. The increase was driven mainly by resale homes, where the average price rose to €2,448/m², also a historic maximum.

At the same time, transaction volumes moderated. A total of 167,934 homes were sold in Spain during Q2 2026, a quarterly decline of -5.7% and the lowest quarterly result of the last seven quarters. However, activity remains high by historical standards, and the strongest coastal regions continue to attract substantial domestic and international demand.

The most important conclusion from Q2 2026 is that the market is moving from broad acceleration to a more selective phase. Prices continue to rise, foreign demand is at a record level, and mortgage activity remains significant. However, buyers are increasingly price-sensitive and more selective, especially where prices have risen sharply.

Local municipality-level data confirms why buyers should look beyond provincial averages. In Costa Blanca North, municipalities such as Benissa, Teulada, Jáveá and Altea show actual completed sales prices well above the Alicante provincial average. On the Costa del Sol, Benahavís remains a clear ultra-luxury benchmark, with actual completed sales prices above €5,000/m².

For Costa Blanca, Costa Cálida and Costa del Sol, the fundamentals remain strong: international demand, lifestyle migration, limited quality supply and long-term confidence in prime Mediterranean property continue to support the market.

Executive Dashboard

Five Key Takeaways

✓ Foreign demand in Spain reached a new historic high at 15.98% of all residential purchases.

✓ Alicante Province / Costa Blanca remains Spain’s leading international property market, with 46.43% of homes purchased by foreign buyers.

✓ Málaga Province / Costa del Sol also shows exceptional international demand at 37.01%, confirming its position as one of Spain’s strongest prime coastal markets.

✓ Murcia / Costa Cálida reached 23.71% foreign demand, while maintaining a significantly lower average price level than Alicante, Málaga and the Balearic Islands.

✓ Spain’s buyer base continues to broaden beyond Europe, with Asia representing 6.75% and South America 6.35% of all foreign purchases.

✓ Actual completed sales prices show that prime municipalities such as Benahavís, Benissa, Teulada, Jávea and Altea trade significantly above their provincial averages, confirming the strength of quality locations within the wider coastal markets.

Spanish Property Market Overview Q2 2026

The Spanish property market remained strong in Q2 2026, but the pace of activity moderated.

A total of 167,934 homes were sold across Spain during the second quarter. This represents a quarterly decline of -5.7% and a year-on-year decline of -2.3%. The number of transactions was the lowest of the last seven quarters, but still within the higher range of activity recorded since 2007.

The decline was more visible in new-build homes. New-build sales fell by -11.5% during the quarter, reaching 34,919 transactions. Resale homes were more resilient, with 133,015 transactions, representing a quarterly decline of -4.0%.

Despite the decline in transactions, property prices in Spain continued to rise. The average property price in Spain reached €2,487/m², a new all-time high. This represents quarterly growth of +2.4% and annual growth of +9.2%.

The most important price signal comes from resale homes. Resale property prices rose by +3.5% during the quarter to €2,448/m², also a historic maximum. New-build prices declined slightly by -0.7% during the quarter, reaching €2,636/m².

This combination of lower transaction volume and higher prices suggests that demand remains present, but more selective. Buyers have not disappeared, but price sensitivity is increasing.

Prime Coastal Property Markets in Spain: Costa Blanca, Costa Cálida and Costa del Sol

Spain’s prime coastal property markets continue to outperform the national market in terms of international demand.

The strongest results are concentrated in Mediterranean and island markets, especially Alicante, Málaga, Murcia and the Balearic Islands.

Alicante remains the standout market. With 46.43% foreign demand, almost one in every two homes sold in the province is purchased by an international buyer. This confirms Alicante’s position as one of Europe’s most international residential property markets.

Málaga Province, including the Costa del Sol, remains exceptionally strong. With 37.01% foreign demand and an average price of €3,347/m², the province combines high international demand with a significantly higher price level than Alicante and Murcia.

Murcia / Costa Cálida shows a different but increasingly relevant profile. Foreign demand reached 23.71%, while the average price remains substantially lower at €1,514/m². This makes Murcia one of the most interesting value markets among Spain’s Mediterranean coastal regions.

The Balearic Islands remain a useful benchmark for prime Mediterranean demand. With 32.27% foreign demand and an average price of €4,311/m², the islands continue to represent one of Spain’s highest-priced residential markets.

Local Market Focus: Actual Sales Prices by Municipality

Provincial averages are useful, but they do not always show what is happening in the most desirable local markets.

For serious private buyers, investors and professional parties, municipality-level data is essential. It helps distinguish between the wider province and the specific coastal towns where international buyers are most active.

The following table shows actual completed sales prices per square metre, as registered before a Spanish notary public, for selected municipalities. These figures reflect completed property transactions, not asking prices.

The data confirms a clear pattern. Prime municipalities trade far above their provincial averages.

In Alicante Province, the provincial average is €2,267/m² according to Registradores, while actual completed sales prices in Benissa, Teulada, Jávea and Altea are significantly higher. This demonstrates the strength of Costa Blanca North as a luxury and high-quality residential market.

In Málaga Province, Benahavís stands out at €5,349/m², confirming its ultra-luxury position within the Costa del Sol. Málaga city itself is also close to the provincial average, while the wider Costa del Sol market continues to benefit from strong international demand and high price levels.

For buyers, this means that location selection is crucial. A provincial average can help identify the general market direction, but actual completed sales prices give a much clearer picture of the real price levels in premium locations.

Province Price Comparison: Actual Completed Sales Data

The following provincial price data provides an additional benchmark for comparing Spain’s most relevant residential property markets. These figures reflect actual completed sales prices per square metre, as registered before a Spanish notary public.

This comparison reinforces three important points.

First, Islas Baleares remains one of Spain’s highest-priced property markets and is a useful benchmark for prime Mediterranean demand.

Second, Málaga Province continues to operate at a substantially higher price level than Alicante Province. This supports its position as a premium and ultra-luxury market, especially in areas such as Marbella, Benahavís and Estepona.

Third, Alicante Province remains highly attractive because it combines very high foreign demand with a lower average price level than Málaga, Madrid, Barcelona and the Balearic Islands. For many international buyers, this creates a strong balance between lifestyle, liquidity and relative value.

Costa Blanca Property Market: Alicante Province

The Costa Blanca property market remains one of the strongest foreign buyer markets in Spain.

Alicante Province recorded 12,298 residential transactions in Q2 2026, making it one of the highest-volume provinces in the country. Foreign buyers accounted for 46.43% of all residential purchases.

The average property price in Alicante Province reached €2,267/m² according to Registradores. Actual completed provincial sales data shows a comparable average of €2,182/m².

However, the local market tells a more detailed story. Prime municipalities in Costa Blanca North trade well above the provincial average:

This combination is important. Alicante offers high international liquidity, strong lifestyle appeal and relative value compared with other prime Mediterranean markets. At the same time, premium areas within the province clearly show a higher price level than the provincial average suggests.

For Costa Blanca North, this supports continued demand for quality homes in locations such as Altea, Altea Hills, Moraira, Benissa Costa, Jávea, Calpe, Albir and Finestrat.

For buyers searching for luxury real estate on the Costa Blanca, Alicante Province continues to offer a strong combination of international demand, relative value and high-quality residential locations.

The strongest buyer demand remains focused on modern, move-in ready homes with sea views, privacy, outdoor living space and good access to services.

Costa Cálida Property Market: Murcia

The Costa Cálida property market continues to gain importance as a Mediterranean value market.

Foreign buyers accounted for 23.71% of all residential purchases in Murcia during Q2 2026. The province also recorded 6,441 residential transactions, placing it among the more active provincial markets in Spain.

The average property price in Murcia was €1,514/m², well below Alicante, Málaga and the Balearic Islands.

This price difference is strategically relevant. While Costa Blanca and Costa del Sol remain better established among international buyers, Costa Cálida offers a lower entry price and growing international visibility.

For buyers seeking Mediterranean lifestyle, new-build options and relative affordability, Murcia remains one of the Spanish coastal property markets to watch.

Costa del Sol Property Market: Málaga Province

The Costa del Sol property market remains one of Spain’s most important international property markets.

Foreign demand in Málaga Province reached 37.01% in Q2 2026, placing Málaga among the highest foreign buyer provinces in Spain. The province recorded 9,387 residential transactions during the quarter.

Average property prices in Málaga reached €3,347/m² according to Registradores. Actual completed provincial sales data shows a similar average of €3,292/m².

At municipality level, Benahavís stands out clearly:

Benahavís confirms the ultra-luxury character of the Costa del Sol. Marbella, Estepona and surrounding areas remain especially relevant in the luxury and ultra-luxury segments, although separate Marbella municipal data is not included in the current dataset used for this report.

For international buyers comparing the Costa Blanca property market with the Costa del Sol property market, Málaga remains the higher-priced benchmark, while Alicante continues to offer stronger foreign demand and relative value.

Registradores does not provide separate Marbella municipal data in this report. For this reason, Málaga Province is used as the official available proxy for Costa del Sol market performance.

International Demand and Foreign Buyers in Spain

Foreign demand was the strongest headline of Q2 2026.

Nationally, foreign buyers accounted for 15.98% of all residential purchases in Spain. This is a new historic maximum and represents more than 26,800 transactions.

The strongest foreign-demand provinces were:

This confirms that international demand is concentrated in coastal and island markets with strong tourism, lifestyle and second-home appeal.

Foreign Buyer Nationalities

The foreign buyer market in Spain remains broad and diversified.

British buyers remain the largest foreign buyer group, but the difference with Dutch buyers is now very small. Dutch buyers remain one of the most important buyer groups for Costa Blanca, particularly in the higher-quality residential and luxury segments.

China reached 3.02% of foreign purchases, while the United States reached 1.79%. Although smaller than the traditional European buyer groups, these markets are relevant because they underline the increasing globalisation of Spanish residential demand.

Foreign Buyers by Global Region

The Q2 2026 data shows that foreign buyers in Spain are no longer only a Northern European story.

European buyers continue to dominate. Buyers from the European Union and the rest of Europe together represent 74.14% of all foreign purchases.

However, demand is becoming broader. Africa, Asia and South America together represent 21.93% of foreign purchases. This is important because it reduces dependence on a small group of traditional buyer nationalities.

The report also shows meaningful differences in the average price paid by foreign buyers from different global regions:

North American buyers paid the highest average price per square metre among the global regions reported. This is relevant for luxury-market positioning, even though North America remains a smaller buyer group in volume terms.

Why Today’s Market Is Different

One of the key questions is whether the current market resembles the period before the 2008 financial crisis.

The Q2 2026 data suggests a different picture.

Prices continue to rise, but transaction volumes are now moderating. This indicates that the market is not simply accelerating without resistance. Buyers are becoming more selective and price-sensitive.

At the same time, mortgage activity remains significant. A total of 129,240 residential mortgages were registered during Q2 2026. Mortgages represented 77% of residential purchases, while the average mortgage amount reached €176,453, a new historic maximum.

The market is therefore supported by both financing activity and continued international demand. However, the decline in transactions shows that affordability and pricing matter.

This is a healthier signal than unchecked speculative growth. The market is still strong, but increasingly selective.

Mortgage Market

Mortgage activity remains an important support for the Spanish residential market.

In Q2 2026, 129,240 residential mortgages were registered. This represents a quarterly decline of -3.3%, but mortgages still accounted for 77% of residential purchases.

The average mortgage amount increased to €176,453, reaching a new historic maximum. This was the ninth consecutive quarterly increase in average mortgage amount.

Fixed-rate mortgages remain dominant, but their share declined during the quarter. Fixed-rate mortgages represented 63.83% of new residential mortgages, while variable-rate mortgages accounted for 36.17%.

The average initial interest rate increased slightly to 3.03%. Fixed-rate mortgages averaged 2.92%, while variable-rate mortgages averaged 3.24%.

Mortgage affordability weakened slightly during the quarter. The average monthly mortgage payment reached €825, representing 34.3% of average salary cost.

This confirms that affordability pressure is increasing, even while mortgage activity remains relatively strong.

nardia Real Estate Agency Market Insight

The Q2 2026 data supports what we observe in daily market activity across Costa Blanca, Costa Cálida and selected prime coastal markets.

Demand remains strongest for properties that combine location, quality and immediate usability.

Buyers increasingly prioritise:

• Modern construction or recent renovation

• Sea views

• Privacy

• Outdoor living space

• Energy efficiency

• Low-maintenance homes

• Walking distance or short driving distance to amenities

• Clear legal and technical documentation

The strongest-performing properties are not necessarily the ones with the lowest price. They are the homes that offer the best combination of location, condition, usability and long-term value.

Properties requiring significant renovation generally need a sharper pricing strategy. Buyers are more cautious with renovation risk, construction costs and project timelines.

The local price data reinforces this point. In Costa Blanca North, actual completed sales prices in municipalities such as Benissa, Teulada, Jávea and Altea are well above the Alicante provincial average. This shows that the market rewards quality locations and strong property fundamentals.

The market remains active, however we do notice that not every property benefits equally from the strength of the market.

Outlook 2026

Our outlook for the remainder of 2026 remains positive, however more selective than in previous quarters.

The Spanish property market continues to benefit from several structural drivers:

• Strong international demand

• Population growth

• Lifestyle migration

• Limited supply of quality housing

• Continued mortgage activity

• High demand for move-in ready homes

• Strong appeal of prime Mediterranean locations

However, transaction volumes are now moderating and affordability is becoming more important. The market is not weakening dramatically, we do notice that our clients become more selective and demand top quality homes on the right location.

For Costa Blanca, Costa Cálida and Costa del Sol, the long-term fundamentals are strong. Alicante continues to offer one of the highest levels of foreign demand in Spain, Málaga remains a premium international market with high price levels, and Murcia continues to offer good value homes within the Mediterranean coastal market.

The Balearic Islands remain a useful benchmark for high-end Mediterranean pricing and international demand.

Based on current conditions, we expect demand for quality homes in prime locations to remain resilient throughout the remainder of 2026. However, pricing, location, presentation and property quality will become increasingly important.

Thinking about buying property in Spain? nardia real estate agency helps international buyers understand the Costa Blanca, Costa Cálida and Costa del Sol property markets with clear data, local expertise and full guidance throughout the purchase process.

Sources & Methodology

This report is based on official data published by the Colegio de Registradores de la Propiedad, Bienes Muebles y Mercantiles de España in its Estadística Registral Inmobiliaria report for the second quarter of 2026.

Main official source used:

Estadística Registral Inmobiliaria – Segundo Trimestre 2026
Colegio de Registradores de la Propiedad, Bienes Muebles y Mercantiles de España
Publication: August 2026

Additional local market data:

Municipality-level and provincial sold-price data supplied from Fitin.tech is based on actual completed property transactions registered before a Spanish notary public. These figures reflect actual recorded sales prices per square metre, not asking prices. They are used to provide additional local context for selected municipalities and provinces and are presented separately from the official Registradores provincial data.

The figures used in this report include registered residential property transactions, average property prices per square metre, foreign buyer participation, buyer nationalities, regional foreign demand, residential mortgage activity, and selected municipality-level actual completed sales prices.

Where the Registradores report does not provide municipality-level data, no municipality-level figures have been added from Registradores. In particular, Marbella is not separately reported in the official Q2 2026 Registradores data used for this report. Málaga Province is therefore used as the official available proxy for Costa del Sol market performance.

Where relevant, the report also includes market observations based on nardia real estate agency's daily contact with international buyers, sellers, developers and property investors across Costa Blanca North and surrounding regions.

The data has been interpreted and summarised by nardia real estate agency with a focus on Costa Blanca, Costa Cálida, Costa del Sol and selected prime Mediterranean property markets.

This market update for the second quarter of 2026 on the Spanish property market has been prepared by Tom Bruijnzeel. He is the author of this informative blog post about the Spanish real estate market, as well as other articles and property market reports published on the nardia real estate agency website.

Tom holds a Master’s degree in Law from Erasmus University Rotterdam in the Netherlands and a Bachelor’s degree in Business and Economics. He is fluent in Spanish, French, English and Dutch, with full business proficiency in German. In 2013, he founded nardia real estate agency in Spain.

The website www.nardia.es is available to everyone considering investing in property in Spain, as well as property owners who have questions about property tax in Spain, correct property registration in Spain, or the taxes due when selling a house in Spain.

LinkedIn: linkedin.com/in/tombruijnzeel