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2026 Real Estate Market Forecast for the Costa del Sol, Granada Region and East Málaga
The Andalusian property market remains one of the strongest and most stable in Europe. For 2026, analysts expect continued growth driven by international demand, tourism and limited coastal availability. Below is a detailed market outlook including key figures for the Costa del Sol, the Granada region and East Málaga.
Price Development on the Costa del Sol in 2026
Expected price growth: 5 to 9 percent.
New developments: 3,500 to 6,500 €/m²
Resale properties: 2,800 to 4,500 €/m²
Granada Region and Costa Tropical Outlook
Average prices range between 1,400 and 2,300 €/m² and 2,000 to 2,900 €/m² on the Costa Tropical.
Annual growth forecast: 3 to 5 percent.
Renovation projects can increase in value by 15 to 30 percent.
East Málaga: Axarquía, Rincón de la Victoria, Torre del Mar, Torrox and Nerja
One of the fastest-growing regions.
Prices: 2,400 to 4,000 €/m², premium locations up to 5,000 €/m².
Inland Axarquía: 1,800 to 2,500 €/m² with yearly growth of 4 to 7 percent.
Holiday rentals achieve occupancy rates of 75 to 90 percent.
International Demand
Over 30 percent of buyers come from abroad, especially Germany, Scandinavia, the Netherlands, the UK, France, Canada and the USA.
Supply Outlook 2026
Supply remains limited, especially in coastal areas. New developments sell quickly due to high demand.
Rental Yields
Costa del Sol: 5 to 7 percent
Costa Tropical: 4 to 6 percent
East Málaga: 5 to 7 percent
Conclusion
The 2026 market offers excellent opportunities for both buyers and investors. All three regions show strong stability, rental performance and long-term appreciation.