Costa del Sol Market Update: A Steady, Well-Supported Picture for International Buyers in 2026

A market that is settling, not slowing down

The latest official figures give international buyers on the Costa del Sol something valuable: clarity. Spain's notaries have just published their housing market statistics for the second quarter of 2026, and the picture they paint is a reassuring one. Sales have eased back from the exceptionally strong levels seen in 2025, while prices have continued to climb to new highs. Rather than signalling any instability, this points to a market that is moving from a very fast pace towards a steadier, more manageable one — precisely the kind of environment in which buyers can make thoughtful, well-informed decisions.

This softer pace of transactions alongside continuing price growth suggests that demand remains firmly in place, even as the frantic urgency of the previous year fades. For buyers, that is good news: it means more room to view properties calmly, compare options and move at a comfortable pace, without the pressure that comes with an overheated market.

British demand remains steady

For British buyers specifically, the second quarter of 2026 brought a simple and welcome message: stability. British buyers purchased 1,876 homes in Spain during the quarter, almost exactly matching the total from the same period in 2025. While the wider international market grew more quickly, meaning the UK's overall share of foreign buyers continues its long, gradual decline, this should not be read as British interest fading. It simply reflects a broader, more diverse pool of international buyers now active in Spain. British demand itself remains consistent and well established, and the Costa del Sol continues to be one of the most familiar and popular destinations for UK buyers.

Why rising prices reflect a well-supported market

According to forecasts from BBVA Research published in 2026, Spanish home sales are expected to fall by 7.3% across the year, even as prices rise by around 12%. At first glance, a forecast fall in sales alongside a sharp rise in prices might sound like a contradiction, but it actually reflects something quite straightforward: demand across Spain remains strong, while the supply of available homes has not kept pace. Rather than a warning sign, this combination simply confirms that Spanish property continues to be a sought-after, resilient asset — a market defined by genuine demand rather than speculation.

For buyers on the Costa del Sol, this underlying strength is part of what makes property here such a dependable long-term choice. A market underpinned by real demand, rather than short-term hype, is one where good properties tend to hold their value well over time.

Financial stability remains firmly in place

One of the clearest indicators of the health of any property market is the level of financial distress among existing owners. Recent figures show that mortgage foreclosures in Spain have ticked up slightly, yet they remain historically low. Spain's property market is a long way from the kind of widespread financial distress that would suggest instability. In practical terms, this means the market buyers are entering in 2026 is built on solid financial foundations, not stretched borrowing.

What this means for you

Taken together, these figures describe a Costa del Sol market that is easing gently from an exceptionally busy 2025 into a steadier, more sustainable 2026 — without losing any of its underlying strength or appeal. Prices continuing to rise reflects genuine, well-founded demand rather than short-term pressure, British buying activity remains dependable, and the financial backbone of the market remains firmly intact.

For anyone considering a purchase, this is a market that rewards patience and good guidance rather than haste. With clear data now available every quarter from sources such as Spain's notaries, buyers have more visibility than ever into how the market is genuinely performing — making it easier than ever to buy with confidence on the Costa del Sol.