The Journal · May 2026
New-build prices on the Costa del Sol 2025: bubble or healthy market?
With prices rising and new developments launching at high prices, are we not repeating the mistakes of 2008? It is best to answer with data, not hunches.
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May 2026 edition, in full
The original charts, the issue's second article and the properties of the month, in three pages.
Open the PDFWhat this issue is about
The latest figures for Málaga tell a very different story from two decades ago. Three facts explain it.
- Far less is being built today, and it is no accident. Ready-to-build land is scarce, building costs 32% more than in 2020 and banks only lend once 60% or 70% of the development is already sold.
- 85% of what is built gets sold. That is the healthy point: empty homes do not pile up and prices do not run away, and it is the second year in a row at that level.
- Marbella sums up the moment. New-build prices have levelled off while resale keeps rising and almost matches them. Elsewhere, new builds cost more: €4,240/m² in Benahavís, €3,700/m² in Estepona and €3,595/m² in Mijas.
Also in this issue: renovated or to renovate?
It is one of the questions I hear most: pay more for a renovated home and move in within weeks, or pay less for one with potential and take on months of building work. A high-quality full renovation in Marbella and Benahavís costs between €1,500 and €2,500 per square metre, and cost overruns run at 15% to 25% if nobody experienced is controlling the work. I cover it in buying a renovated home or one to renovate.
About the author
Alfonso Lacruz
Naval engineer and market analyst. Over 25 years advising owners in Marbella and Benahavís. Publishes a monthly market analysis with Land Registry data.
The figures are indicative and every property is different: for a specific number, ask for a valuation of your home.
Sources: Spanish Land Registrars' Association (Colegio de Registradores de España); Ministry of Housing and Urban Agenda (Ministerio de Vivienda y Agenda Urbana). Own analysis. Last updated: 8 June 2026.
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