• Who buying property on the Costa del Sol is for: permanent living, a second (holiday) home, and investments for long-term or short-term tourist rentals.
  • What to consider: the choice of town and property type strongly affects the budget; prices vary by municipality.
  • Figures from the article: the average price on the Costa del Sol in early 2026 is 4.082 €/m2; year-on-year +15.9%. The share of purchases by foreigners is 34.75%.
  • Purchase stages: property due diligence → NIE → bank account → arras → (if needed) mortgage → notary & taxes → registration.
  • Timing/cost: related taxes and expenses usually amount to 8–13% of the deal price (according to the article).
  • Risks: encumbrances, debts, missing certificates/documents, mistakes in agreements and deadlines.

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Buying Property on the Costa del Sol: How to Buy a Home in Malaga, Marbella, Estepona and Other Towns

Buying property on the Costa del Sol is a great decision both for permanent living and for investment. If you have already decided that your next home will be located on Spain’s sunniest coastline, one of the first tasks will be choosing a location and a property type. In this article, we will describe all major resorts on the Costa del Sol where you can buy apartments and houses for permanent living, as a second (holiday) residence, or for investment purposes with long-term or short-term tourist rentals.

The Costa del Sol – the coastline of Malaga province (Andalusia) – remains one of the most popular destinations for tourism, relocation for retirement, and digital nomads. Demand for real estate here remains consistently high from both domestic and international investors. This sunny coastline ranks second in Spain by the share of home purchases by foreigners – 34.75%, second only to Alicante at 43.67%. This is driven by the excellent climate (the name speaks for itself), well-developed infrastructure with a high level of service for discerning affluent clients, and thoughtful planning and development of the entire coastal zone.

According to idealista, Spain’s largest real estate portal, the average price per square meter on the Costa del Sol is 4.082 € – 15.9% higher than a year earlier. However, depending on the municipality or city district, the price can be above or below the average. The selection on the secondary market is large, so finding a suitable property that matches your preferences and budget is not difficult. From Nerja to Manilva along 150 km, one beautiful location сменяет другую, with large towns alternating with small resort villages – and everywhere you can find options for every taste. New construction is also actively underway on the coast, so if desired, you can buy a new apartment, townhouse, or villa from a developer.

Malaga – the capital of the province – is one of the most sought-after cities in Spain for buying a home. In Malaga, the price per square meter rose by 12.2% over the last year, reaching 3.632 €, while the average growth across Spain was 18.4%. But this does not mean demand is decreasing. The main price growth in Malaga occurred in 2024: while Spain recorded around 8%, Malaga exceeded 17%. Today we are seeing some stabilization. The city offers a rich cultural scene, gastronomy and entertainment infrastructure, modern co-working spaces for professionals and digital nomads. Near Malaga there is an international airport serving more than 160 destinations.

Buying property on the Costa del Sol: Malaga

Marbella is the most popular resort not only on the Costa del Sol but in all of Spain. Marbella is synonymous with glamour, luxury, and high-end living. Sometimes you may hear that Marbella’s golden era is in the past, but that’s not the case. The city keeps up with the times and shifts its priorities: while it used to be seen mainly as a destination for short visits, shopping, and nightlife, today the focus is on creating conditions for permanent living for modern IT and business elites. In Marbella, on the Golden Mile, there are three branded residences: EPIC Marbella furnished by FENDI CASA, Karl Lagerfeld Villas, and Design Hills Marbella by Dolce & Gabbana. This is also where you’ll find the best private clinics on the coast, international schools, and educational centers. Therefore, Marbella remains the most prestigious place on the Costa del Sol – a marker of prosperity and status. Property in Marbella averages 5.596 €/m2, but on the Golden Mile prices can reach 20.000 €/m2. Annual price growth is 9.9%.

Buying property on the Costa del Sol: marbella

Benahavis, located on elevated terrain with magnificent views of the coastline, is one of the most expensive municipalities in the region. It is home to gated residential complexes offering a variety of housing options – from villas to premium apartments – all with strong capital growth potential. Benahavis features the branded residence Tierra Viva by Automobili Lamborghini, as well as four exclusive urbanizations known far beyond Spain: La Zagaleta, La Quinta, El Madroñal, and Los Flamingos. In addition, Benahavis is considered the gastronomic capital of the Costa del Sol. People move here for nature, privacy, comfort, and a high quality of life away from the busiest tourist areas. The secondary-market price per square meter is 5.483 €, with prices up 14.9% over the last year.

Buying property on the Costa del Sol: Benahavis

Estepona is a town located between San Pedro de Alcantara and Manilva, south of Marbella. It is known for its beautiful golden-sand beaches and picturesque architecture. Estepona is strongly oriented toward tourism, especially family tourism. The town and its surrounding urbanizations are popular among affluent Europeans: clean beaches, well-maintained residential areas, and good infrastructure – everything you need for a comfortable, unhurried lifestyle. Property prices: 4.207 €/m2 with annual growth of 14.3%.

Buying property on the Costa del Sol: Estepona

Fuengirola is one of the most attractive destinations for buying property on the Costa del Sol thanks to an excellent price-to-quality ratio. Fuengirola, located примерно посередине between Malaga and Marbella, is ideal for permanent living or vacations, as well as for investment. Tourist apartments intended for short-term rentals and located near the sea with good transport infrastructure are especially high-yield. Property in Fuengirola costs 4.411 €/m2, with annual price growth of +15.8%.

Buying property on the Costa del Sol: Fuengirola

La Cala de Mijas area, located between Marbella and Fuengirola, is an ideal place for those who want to live near the sea, have access to infrastructure, and enjoy good transport connections to the rest of the province. Administratively, this coastal zone belongs to the municipality of Mijas – a typical Andalusian white village spread across the foothills north of Fuengirola. Property is in demand in both places: in one case, the choice is for beaches and resort атмосфера; in the other, for nature, crystal-clear air, and beautiful views. Housing prices in Mijas: 3.639 €/m2 (+15.6% per year).

Buying property on the Costa del Sol: Mijas

Also, when choosing property on the Costa del Sol, we recommend considering the following municipalities:

  • Benalmadena – 4.092 €/m2 (+14.7%)
  • Velez-Malaga – 1.937 €/m2 (+16.9%)
  • Nerja – 3.790 €/m2 (+10.7%)
  • Manilva – 2.898 €/m2 (+16.5%)
  • Torremolinos – 3.900 €/m2 (+15.0%)
  • Rincon de la Victoria – 3.212 €/m2 (+10.5%)

Buying property on the Costa del Sol: Benalmadena

Buying property on the Costa del Sol: step by step

Buying property on the Costa del Sol, as in Spain in general, is a clearly structured and transparent procedure. Here are its main steps:

  1. If the property has already been selected, you need to check its status: who the owner is, how many owners there are, whether there are any encumbrances or restrictions on the property (mortgage, embargo, easements, etc.), any outstanding utility and tax debts, the presence of an energy efficiency certificate, and more. Technically, the buyer can do this check themselves, but in practice we recommend working with a realtor or lawyer who will professionally verify the deal and calculate the taxes due when buying property in Spain in advance.
  2. Obtain an NIE (Número de Identificación de Extranjero). Residents and Spanish citizens complete the purchase with a DNI or TIE – an identity document or foreigner card. Foreign citizens without Spanish residence must obtain an NIE number from the police; it serves as both an identification and tax number. This is a mandatory step because the tax number is required for registration with the tax authorities. The NIE can be obtained at a Spanish consulate in your country of residence or from the police directly in Spain.
  3. Open a bank account in Spain and transfer the amount required for the purchase. Later, taxes and utility payments can be linked to this account.
  4. Sign a deposit agreement (contrato de arras), which records the main terms of the transaction, its timeline, and the rights and obligations of the parties if the deal is canceled.
  5. If your own funds are not enough, arrange a mortgage loan with a bank. In this case, you will need a property valuation and an independent report.
  6. Sign the notarized deed of sale (escritura pública) with a notary and pay the taxes. On average, all related taxes and expenses amount to 8–13% of the deal price.
  7. Register the deed and – if applicable – the mortgage agreement in the Land Registry. As a rule, this is handled by the notary or the lawyer supporting the deal.

Information is not legal or tax advice. Not a public offer.

FAQ

Are property prices on the Costa del Sol going down?
According to the latest figures cited in the text, in early 2026 the average price per square meter on the Costa del Sol is higher than a year earlier (+15.9%). At the same time, dynamics can differ by municipality and district, and some towns may show a stabilization in growth rates.
Is the Costa del Sol a good investment?
The Costa del Sol is often considered an investment destination due to steady demand and developed infrastructure. Property is bought for living, as a second residence, and for long-term or short-term rentals. Profitability depends on the location, property type, budget, and usage scenario.
Is it expensive to live on the Costa del Sol?
The level of expenses depends on the chosen town and lifestyle. In more status locations (for example, Marbella and certain premium areas), costs are typically higher than in towns and municipalities with lower average property prices.
What is the property price index on the Costa del Sol?
In practical terms, it’s an indicator that reflects price levels (for example, the average €/m2) and how they change over time in a given area. Our text provides ориентиры for the average price and annual dynamics, as well as examples of differences between municipalities and districts.
Which town is the most beautiful on the Costa del Sol?
This is subjective and depends on preferences: some people value urban culture and infrastructure (Malaga), others prefer status areas and service (Marbella), others choose resort architecture and beaches (Estepona) or a more камерная atmosphere in smaller towns.
Is the Costa del Sol a good coastline?
The Costa del Sol is one of the most popular destinations for tourism and relocation thanks to its climate, infrastructure, and coastal planning. However, the assessment of “good” is subjective and comes down to how well the region matches your goals: living, отдых, or investment.

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