#98 Costa del Sol Real Estate 2026 Predictions: Will Property Prices Continue to Rise?

If you’re thinking about buying a property on the Costa del Sol in 2026 and you’re asking, “Will prices keep going up or should we wait?”, this is the conversation you need to hear.

Sandra and Warner of WL Costa Properties answer the big 2026 questions international buyers are asking, and Warner gives his straight answers based on notary data from Benalmádena and 20 years real estate experience on the Costa del Sol.

What you’ll learn:

• Will prices rise again in 2026? Warner explains the actual figures
• Why “price drops” on Idealista and property portals actually mean for buyers
• Can you still negotiate a bargain in the current market?
• The 100% tax headlines & tourist licence predictions for 2026
• Why international buyers will continue to flock to the Costa Del Sol in 2026
• Why the Costa Del Sol is a safe location for families 
• The “Perfect” vs “potential” property and what that means for buyers

Book a complimentary consultation with WL Costa Properties:

https://calendly.com/wlcostaproperties/property-consultation?utm_source=podcast&utm_medium=audio&utm_campaign=consult_call

Resources:

📘 Download our Buyer’s Guide (costs, legal checks, timelines & more):
 https://wlcostaproperties.net/our-comprehensive-digital-course/?utm_source=youtube&utm_medium=video&utm_campaign=buyers_roadmap

📩 Email our team: info@wlcostaproperties.net

📱 Call / WhatsApp: +34 602 42 89 28

📍 Visit our office:
 Avenida Bonanza Local 21, Arroyo de la Miel, Benalmádena, Málaga
 Walk-ins: 10am–2pm | After 2pm by appointment

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Related Episode

#94 Q4 2025 Costa del Sol Property Market EXPLAINED [ What 2026 Buyers Need to Know ]

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Transcript

0:47

Welcome back Now, today we are going to be talking about all things 2026. We're going to be discussing the questions that we get asked every day about 2026 property predictions. Will the prices keep going up? Are there still affordable areas? Will the a hundred percent tax rumors ever materialise, So if buying a property on the Costa sel sol is front of mind for you for 2026, this is the episode for you, Warner. Absolutely. I'm really excited. 2025 was a great year for w cost of properties, so I want to look over, all the figures and stats from there and kinda get my crystal ball out.. To predict 2026. Exciting. Exciting. So we're going to do just that, right? We're gonna jump into the predictions, what's happening on the ground. The questions that our customers and buyers are asking us on a daily basis so that we can share just that with you so that you feel confident and informed as you pursue your property journey for 2026. So let's jump in. Are you ready? I'm ready. Great. Okay. So this is the big question that we get asked by every buyer who comes into our World Warner, and that is, will the prices keep increasing in 2026? Okay, so big question. Drum roll. Okay. With the figures from 2025, we have been experiencing growth year after year. I think for myself that 2026 is going to be, yes, there will be growth.. But I think it'll be a bit more balanced. Okay. Okay. Compared to different years where it was,, prices were going crazy and buyers were just, buying whatever they can, I think. This year is going to be a bit more where they're sitting back, they're looking at the prices, they're making sure, you know, we have the new data of, prices, your valuations. So they, they want to know that they're getting value for money. Okay. So, let's be specific. So what you're, what I'm hearing from you there is that you do predict that property prices will increase 2025. And 2026 from 2025 to 2026 along the Costa Del Sol Yeah, and we really specialize in our expertise in Benalmádena, and I think it's fair to say that we have that same prediction that the property prices will increase in the Benalmádena area 2025 to 2026. When we look at last year, as Warner mentions, we now have official notary data available to us, which allows us to really analyze the figures. So when we look at the Benalmádena from last year, and we look at all of the property prices that concluded in 2025, we can see 2024 versus 2025, there was around 5% increase in property prices, just over 5% in the Benalmádena. So what that means in layman's terms is in 2025, the property prices increased by just over 5% in 2024, and we are basically saying to you that we see the same trend coming down the tracks this year in the Benalmádena. So you know, despite what you might think when you're looking on ideal lista, that you're seeing some price corrections, yes you are for overpriced overinflated properties, they are correcting, but the property prices overall are not actually coming down and we're still seeing that there is buyer disappointment when they go in and they try to negotiate on a correctly priced property, assuming that, you know, they can get that price down. But Warner, I think it's fair to say if the property is priced correctly and you know it's sitting within the correct price per square meter for the area and for the property itself, it doesn't sit in the market for very long. No. And, , we still have a problem with supply and demand. Yeah. Okay. The demand is, is higher than the supply that's coming on the market. Mm., If the supply is too expensive . We still Yeah. Until , the prices start coming down. That's. What I'm seeing just now. Yeah, that's, that's happening right now, isn't it? In January. I think that's the biggest thing that we're seeing. So maybe let's discuss that in a little bit more detail. So if you're a buyer and you're sitting at home and you're watching the market, what are you going to see in layman's terms what's happening? It depends on where you're looking. You know, villas, were starting to see, you know, last year , the villa prices started to get way above where the they should be.. And so we're starting to And when we're coming down then we're starting to see them starting to move. Starting to sell.. In regards to apartments. Apartments in good locations.. Sought after areas are still commanding the fee, but Yeah are there apartments that are not in the more desirable area, are taking a bit longer to sell? To sell, yeah. That is due to the price. And it's due to, you know, the sellers having an idea what it's worth and what the market is actually telling you. So we're still seeing that gap, right? In terms of sellers who have been here and they've been watching the market for a while, and they came in and maybe didn't take the advice of a correctly professional valuation, and they're kind of going. Well, this is what Johnny down the road sold their property at, mine is in better condition subjective, yeah., Putting their property on the market and it sits there and then, you know, , a buyer might be watching at home going, well, that, that property's on the market now for 10 months. I'm gonna go in with a low ball offer. You need to be careful there. Because you still need to go in with an offer based on what the property's worth. So you need to use your real estate agent to tell you, you know, what have property prices been selling for realistically in that area, and what does the notary data tell me in terms of what was the real selling price of property prices in that area? And you structure your offer based around that, right? Yeah. So we we're still seeing that challenge in terms of getting the gap closed between the seller and the buyer. Yeah, absolutely. We are seeing it, and that's when we are the listing agent in Benalmádena, and it's really important when we do the listing appointment that we bring all the information or take the information away and deliver a personal evaluation of like, for like what is selling, you know, to make sure that the, the seller has a. A very good idea. You know, the seller, when they're selling the property, their idea is to sell.. You know, and for us as a listing coming through to . To buy the property... Then he's going to get frustrated because there's not gonna be any buyers. Correct.'cause the market is the market. Yeah. I completely agree. And I think then from a buyer perspective where, , you are very much in the driving seat when it comes to bringing on board our exclusive listings. But then from a buyer perspective, which is a lot more of the conversations that I'm having at the moment, , I think I'm seeing people coming in thinking that they can negotiate a bargain. You, you can't. You know, , and I'm not being negative and dismissive, but you can't, if the property's priced right, if it's in the right area, if it's what you're looking for, you have to go in with a respectable offer that the seller is prepared to accept. And this is sometimes where I see cultural nuances and cultural differences get in the way. Yeah. And I. Sometimes this is little bit,, murky territory to navigate as well in terms of, , if there's a Spanish person selling a property, they have a different expectation and cultural values and ways of operating than a buyer that might be coming in from the US or the UK in terms of what they're used to in their market. And that takes a little bit of navigating and causes some frustration. It's very important as well for buyers that particularly are working with us, that we try to navigate them and educate them not only on the market, but on some of the cultural nuances that we might need to go through if we go into a negotiation situation with a client. Yeah. we are seeing a lot of our clients put their trust in us. Because. They've tried to navigate the market and trying to do it themselves, and it just doesn't work. They just say, here's my budget. This is what I'm looking for. I trust you guys to find it. And we're seeing a lot of people put their trust in us because. We are the experts. Yeah. You know, so to sum up, we've talked about a lot there. Okay. So back to the first question., Will property prices increased in the Benalmádena in 2026 versus what we saw in 2025? Absolutely. You know, we know that 2025 had, over a 5% increase versus 2024. 2024 versus 23 was 12%. Yeah. So, although the trend is slowing down, it's still increasing. So it's still a very favorable investment and we predict, based on what we're seeing in the market, that we're going to have the same lift this year. Not so spiky, if that's the right word, but a slower increase. So, you know. The experts are saying 5%, we are kind of saying yeah, maybe between three and a half to 5%. Yeah. So if you, if you look at that, if you, you buy, , this year, then you know you've got. 5% there profit. And you know, we don't see in the years to come that that will start to be negative. It will always due to the supply and demand. Supply and demand, people want to come to the Costa Del Sol Yes. People relocate so there is a lot of demand. We can see if I had my crystal ball in the next five to 10 years, it's just going to keep on rising. Yeah. So if you're interested in buying a property, then do it this year. Yeah. And I think that we'll come back to why people are moving here in a minute. But again, I want to talk a little bit more about Round. If you're buying a property this year, and this is the year. It's, it's very important that you work with a established and respected real estate agent because we're still experiencing that gap between the buyer and the seller. And if you've not purchased. In Spain before, particularly along the costal, which is kind of its own microclimate in terms of what's happening in the property market in Spain overall, yeah is different to what you see on the Costa Del Sol. The Costa Del Sol has very different figures, and its own market terms compared to the rest of Spain. So it's important that you work with , an agent who can guide you through that, particularly based on what they've seen in their specialized area and can really support you if you see a property that you want. Yes. If it has been sitting on the market for a while, that number one, you understand why it's. Been sitting on the market for a while. Is there some challenges with the planning of the property? Did they have a seller that couldn't get a buyer, that couldn't get finance that pulled out? Is the price just completely overinflated versus the market? What's the handicaps with the property that are kind of making it sit there and you then look at what does the property mean to you personally? Okay. You know, is this the property that you want and that you structure a respectable offer to get you the outcome that you want? Because low balling it, it doesn't work. Particularly if you're buying from, you know, a Spanish individual going in and low balling, it would be seen really offensive, um, and it can cause you more challenges. To get that offer across the line. That's something to be mindful of. Yeah, and it's really important that you understand the way the Spanish property market works. I know if I take the UK for instance.. It's one agent. They have the exclusivity and you know, they're the only ones that can sell that property. Over here, it's totally different.. You know, because if I don't have the product that my client wants, I have a network of agents that all that also have properties that fit that criteria. So I can just reach out to them and say, I have a client. This is a budget., Do you have anything that's. It was a good option because we can source . The client, what they're looking for as well. Yeah. So if you're working with that real estate agent, not only can he sell you his own properties and give you valuable advice, but they can also source you what you're looking for. Yeah. Absolutely. That's perfect. Okay, so last year we kept seeing some,, scary headlines popping up that definitely impacted the property market here., We had, well this wasn't a headline, this was a reality. We had the change in the tourist licensing laws, which impacted quarter two, but fair to say, there's been a revision on that now. So that investor market has bounced back. I'd say in Benalmádena, more than ever., Then we also had in quarter two, , the president of Spain, Pedro Sanchez, announced a hundred percent tax for property purchase for those purchasing. Outside of the eu, a hundred percent of what now this caused chaos., people's imaginations were going into overdrive in terms of what does this a hundred percent mean. Anyway, to cut a long story short, it didn't materialize. There's lots of reasons why, which we can go into another time if you want to phone us for a chat. But I think what I want to discuss with you today, Warner, is, you know, based on that headline last year. Do you think that that is something that will materialise this year? I think this was just propaganda, because obviously there's a government in Spain at the moment and you know, we are having the elections coming up again, so, , there's a known housing crisis in Spain, so, I think it's just kinda., It was a statement that was in the press. It wasn't really backed up with any facts. It wasn't backed up with any facts, and nobody, any lawyer could find out how they could actually pass that through. Yeah, so essentially to answer my question, do you see that that's something that will materialize this year? No. Okay, perfect. We also saw some positive news in quarter three last year where it was announced an upgrade for Malaga Airport, which is incredible. Starting already this year due to be completed by 2028. If I remember correctly, a massive investment of 1.6 billion Euro malaga Airport, opening up more routes, more international destinations, , which you know, has been received really positively. And again, it is a reflection on what we're seeing in terms of already happening in Malaga Airport because you don't announce an investment if there isn't a demand for it. So Malaga again, buoyant, international , location with demand from all over the world. Now let's talk a little bit around why. Okay, so the Costa Del Sol has always been popular as a destination for Europeans, Northern Europeans. Southern Europeans. The Scandinavians, the Dutch Belgians, the Brits always love the Costa Del Sol, so there's a longstanding relationship there, the Irish love it. So it's always been a popular destination for Europeans. Lately in the last, I'd say five years, that international space has really, really opened up. We've seen the Americans coming in, we've seen the Canadians coming in, really a, a, a melting pot of nationalities. And yes, it's always been appreciated as a holiday destination, second homeowner, then later an investor location. And after COVID a great place to work. You saw digital nomads, you saw families relocating, and we saw,, people, I suppose, expediting their plans to retire here and buy their holiday homes over here earlier. And we actually saw that reflected in the notary data because the average purchase age in Benalmádena for last year is 50 years of age with 48% of the purchases in Benalmádena Being from foreigners. So it actually lines up with what we're seeing in terms of people that had a retirement plan here have accelerated that and they've said, ah, I'm not gonna wait. I'm gonna buy my home there. I'm gonna get used to it. I'm going to holiday there eventually with a plan of retiring. But why? Why is the popular? And this is something that I keep hearing and I, I've heard it. I've had this discussion with two of our clients this week that have moved over from the US and Canada. They've moved over over the Christmas period. They're renting, they're getting to know the Costa Del Sol and now they're actively attacking their property search. It's the safety element. There's a predictability here. Europe, okay, gets a bit of a bad reputation in the press for not being as maybe slick and as agile and as fast as some other countries when it comes to change in implementation. But people feel safe here. Isn't that correct? Yeah. People do feel safe here and we are seeing a lot of nationalities from the last couple of years coming over to, to live the Costa Del Sol, It's on everybody's lips and the forums and I think the airport expansion is, it is good toknow that it's, that's more for international, not European. so we will see a lot more connections to America, canada, you know, United Arab Emirates is a big market that could be coming over here because of the, people from Dubai and Abu Dhabi. Yeah. They, they normally come to Marbella, but you know, we'll, we'll spread the Costa Del Sol. So we're starting to see some inquiries coming from there as well. So that is all positive. The Costa Del Sol is open for business and it's a great place to live. But yeah, it's, it's known for its security as well. Yeah, and I think whatever your political beliefs are, and we're not here to thrash that one out, but , as human beings, the world can feel a little bit unpredictable and scary when we are reading the headlines. On a daily basis right now, and , I feel that. the Costa Del Sol, and those who make a decision to invest here or relocate here, it brings a bit of a safe haven for people. I know. It does for me. I almost feel like I'm cocooned over here and,, away from the chaos that appears to be happening around us and. I know a lot of the work that I do , I'm dealing with families and relocators, which are 30% of the business that we do. It's not the mass majority of who buys with us, but they are there and the conversation that mothers and fathers are having with me is. I feel like this is a safe, stable location to raise my children, and we can vouch for that. We're coming up to our 10th anniversary here in Benalmádena. We made that decision ourselves to relocate in 2016, and one of the reasons was for the safety. The second, the big reason was the lifestyle and , that would still be part of our decision making criteria even now. And it does bring that element of safety too. You know what feels like a little bit of chaotic times. the Costa Del Sol, we have 325 days sunshine a year. You know, you have a very good infrastructure, Malaga airports three hours away from most European destinations.. And so, you know, it's only going and , as I said, it's open for business and people are actually like the amount of international schools that are opening up in the cost of those. So you can see, you know, the demand is there. The demand is there. and people are actually seeing it as an kids to learn different languages, to look at different cultures. Absolutely. And everything else. And I know from our kids, from being in Ireland, if they would had the school in Ireland, now they moved over to Spain. You know, they're fluent in Spanish, they're dealing with so many different nationalities and it's really a cultural melting pot and they've just so benefited from it. Yeah. I'm so proud of so much of the elements of our journey and our move in 2016, but as a mother, the thing I am most proud of is, and I actually get emotional thinking about this, sorry, is the life that it has given our kids. You know, like our son speaks three languages. That's not me saying that from a boastful point of view. I just think about the opportunities that opens up to him in the next phase of his life. Our daughter, she speaks two languages perfectly. You know, she'll move on to her third and due course. She's off playing football this morning, and there's 10 girls out there working their little, , they're working their, their little souls off,, in a team and when we look at the team in terms of the cultural dynamic on that team, she's got Norwegian teammates, she's got German teammates, she's got British teammates, she's got Spanish teammates, she's got Moroccan teammates. Like that is an absolute gift when it comes to the communication skills that our children will have as they grow older and our daughter is not extroverted. She's introverted. Yeah but her ability to read social cues and cultural cues because of the life that she's been exposed to over here, it just makes me so fucking proud. Yeah. Like it's, I'm just so proud of it. Yeah. You know? Yeah. No, and it's, it is amazing , and if people are, you know. They're stuck in their own country and they want to have a different life for their children, and don't contact us because we can make it happen. I know. Okay, so back to the agenda Warner. We deviated there a little bit. Another question that we get asked is, are there still affordable places to buy? Oh, am I even interested in your answer to this one? I guess it depends on your definition of affordable. Yeah. Well I think,, over the last couple of years, a lot of the, the people are saying, the Costa Del Sol you know, is this cheap holiday basement that I had in the the 1970s and all that. I think now it's starting to become a reality to people and they're actually studying the market, looking at the market, and they're looking at other areas as well and doing co comparables. Yeah. And they're coming to the realization, yeah, I want to be in the cost that they'll solve and they're coming with good. Budgets we've seen that from, five years ago, 200,000. Now they have 300,000, you know, so the, the, either they're making a plan to have the, the money there because people are educated now, so they, they know what's in the market. They can look on all the property portals, you know, listen to podcasts and everything else. They know, they know what's happening. So they're not going to come and say like, I've got a 200,000 budget and I want a two bedroom, two bathroom. Yeah. That's just not gonna happen anymore. One, because they'll just get laughed at, well, well, it does happen, but. You know, not as frequently. Not, not as frequently. And you know, but the reality is people know if they're coming to the Costa Del Sol they're educated. They know what they want. Yeah. And it's just a case of finding the property for them. So I believe there's a property out there for everyone.. But then you know, you have the property, so if you don't have the money to buy that perfect property. Then maybe you can buy the that into perfect property. Yeah. Like our client done. Yeah. Last month. Yeah. Yeah, absolutely. We had a client last month and she did make some trade offs, so, you know, she decided to go, she need, she wanted her area and that was non-negotiable, but she picked in the end an older. An older complex with no pool. So she made that trade off because that wasn't really important to her. Now she got an absolutely beautiful apartment. Yeah. And when the renovation work is finished, it will be absolutely stunning and it will be far in excess of, you know, what she paid for it in terms of value. And I think that's the word, isn't it? People need to maybe make trade-offs. Yeah. If they want the Costa Del Sol, they want their location. You need to really evaluate your priorities and decide, okay, we could potentially park that. Yeah. But, but this, this area is not something that we're prepared to negotiate on. So yeah, you might need to make some trade offs. So mentally prepare yourself for that.. If you are considering on pursuing your property search this year, we were told, , recently that, you know, we do real estate differently., We talk a lot about, you know, the Costa Del Sol is still an unregulated market. Although regulation is coming, real estate agents will be required to register on a registry by 2028, and there's some very specific criteria that you need to meet in order to comply with the new regulation. And for us, we think this is a good thing because it will only impact you, , the consumer in a more positive way to ensure that, we are always professional, but it will ensure that there's a level of professionalism in the market. There'll be certain standards and benchmarks that everybody will have to adhere to, and it will bring an element of consistency. So for me, absolutely this is a good thing. So we get told all the time though that we, we do things a little bit differently. You know, there's the common things in terms of, we always get back to people in a really prompt way because we've got strict SLAs in our business. You know, we've onboarding processes, offboarding processes,, we try to release the prize and delight in terms of the service that we bring and that we give people. It's very important to us. I want to kind of pick your brain in terms of why would it be perceived that we do real estate differently. I think obviously I have 20 years experience in real estate working in all different markets, but predominantly in the Costa Del Sol, and I've seen a lot of horror stories. We've also been there, done it and got the t-shirt with regards to buying, renovating, investments, selling, buying your dream home, everything. And that's, that's so important, that you have that experience, that you understand, what your client is looking for. And I think with that, with the client putting their trust in us, you know, I think it's a very good, because they're putting their trust in 20 years experience and being there, seen it and got the T-shirt. Yeah. So, we also introduced them to our business partners, to make sure that everything from the start of the journey to the end of the journey. And even after care service is second to none. Yeah. And I think, we pride ourself on that. You know, our door is always opened and even to this day, I've still got, you know, the same phone number that people, you know, they're texting me four or five years later. Can you get me this? Can you get me that? So I think that is really important. We're known as one of the biggest real estates in Benalmádena, and we just want to keep on making that reputation. Yeah and growing the reputation. Well, we live in Benalmádena in the community as well, so we're not going to treat somebody badly because we're gonna see them every day in the coffee shop. Well, the thing about it is, is you're only as good as your last sale. Yeah. Is what I say. And you know, when you go out and you know, you go to your restaurant, I'm always bumping into people that's bought from me or they've sold, so it's great to see their family and everything else. And they're like, he, he sold me that. Now it's like one them, Sandra sold this up. So it's really, it is good for us because we have a great reputation in Benalmádena, you know, and we just want to keep that. Yeah., Going forward. No, absolutely. That's amazing, Warner. Amazing. So, is there anything else that you'd like to cover in terms of predictions for 2026, crystal ball time? we're still gonna have this supply and demand, we're still going to be seeing , good location properties getting higher premiums., There will be bargains out there, but the main thing is be ready. Yeah. Because if I pick up the phone and I say, this property's here. I need you to be ready to, to go all in. And, the future is, is bright with the airport expansion coming, and we're still getting inquiries from all over the world. Which shows you that the growth is going to be there. So yeah, we're really looking forward to 2026 and, hope to see you all soon Amazing. Amazing's gonna be a great year, and it's a great time now for you at home, watching to start putting your plans in place. Start putting those steps in place so that 2026 is the year that you accelerate your property. Search along the Costa Del Sol. Now, if you need some support in terms of where to get started, head over to our website, www .wlcostaproperties.net. It's just had a little facelift for you, making it even easier for you to navigate. Go to the resources section. You can find our buyer's guide there. You can subscribe to our newsletter. You can listen to this wonderful podcast. We have all of the resources there to support you to get started. So not knowing where to begin is not an excuse for you. We hope you've enjoyed this episode. Please remember to like and subscribe. It's very important. It helps us to know that you like the information that we're bringing to you, and we will see you on the next episode. Caoi for now.