Buying a second home on the Costa del Sol means balancing excitement with financial analysis. It’s easy to picture mild winters, long days on the golf course and the coastal cuisine of Málaga. But it pays to check the state of the property market too. Current figures point to a good time to invest.
We look at the key factors, including the rise in foreign demand, the strength of new-build developments and how property performs as an asset. We focus on key locations such as Marbella, Estepona, Mijas and Ibiza.
Record-high international demand
Spain’s residential market has always attracted international buyers. In recent years, that group has gained more weight. Their interest has shifted towards connectivity, security, infrastructure and quality of life, for both remote working and investment. According to the Spanish Land Registrars’ Association (“Colegio de Registradores, Estadística Registral Inmobiliaria, Q2 2026”), foreign property purchases hit a record in the second quarter of 2026. There were more than 26,800 transactions, an increase of 15.98%. At the provincial level, Málaga stands out, accounting for 37.01% of these deals.
The western Costa del Sol attracts a large share of that interest. British, Dutch, Swedish and German buyers invest with a long-term view. They account for more than half of purchases in municipalities such as Marbella, Mijas Costa and Fuengirola. They look for developments with high quality standards, generous communal areas and proximity to the sea.
Is the new build on the Costa del Sol a solid segment right now?
The new-build sector is going through a very dynamic phase. On the Costa del Sol, developments sell fast, which shows how strong demand is. Many sell out before the construction starts or finishes.
Forecasts for 2026 and 2027 show the market holding its course. Prices are expected to rise because of the shortage of ready-to-build land, administrative timescales and higher material costs. Supply and demand are out of balance, so no short-term correction is expected.
New build or resale: which is the better choice?
Resale offers immediate availability. New build, on the other hand, brings advantages that weigh much more over the long term. The main ones are:
- Energy efficiency: new homes meet the current Technical Building Code (Código Técnico de la Edificación), which requires buildings with nearly zero energy consumption.
- Legal guarantees: the Building Regulation Act (Ley de Ordenación de la Edificación) covers structural damage for ten years.
- Personalisation: buying an off-plan property lets you choose your finishes and layout.
- Staged payments: you pay part of the price during construction, which helps you plan your investment better.
- Modern communal areas: pools, gyms, spas and gardens designed for the relaxed Mediterranean lifestyle.
New build also meets exactly what international buyers want. Quality, services and proximity to the sea.
Find your second home with Prime Invest
As we have seen, the data shows it’s a good time to buy a second home on the Costa del Sol. Demand is growing, supply remains limited, and forecasts point to further appreciation. At Prime Invest, we have spent 15 years supporting Spanish and international buyers in the new-build market. You can explore our property developments or discover our future new developments. Nativa stands out among them, a collection of 14 boutique apartments in Seghers, Estepona. It offers open views over Estepona Bay and Gibraltar, with estimated completion in November 2026.
Want to back up your decision with data? Our real estate consultancy team will analyse every option with you. Get in touch.
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