Costa del Sol Buyer Update: Record Demand from Overseas, Steady Foundations Beneath the Market

International Buyers Are Leading the Way

The latest figures from Spain's Land Registrars show that foreign buyers purchased 51,627 homes in the first half of 2026, a rise of 4% compared with the same period in 2025. This marks the strongest first half on record and puts annual demand on track to approach 100,000 purchases for the year. For anyone considering a home on the Costa del Sol, this is a welcome sign: it reflects sustained confidence from international buyers in Spain, and in this coast in particular, as a stable and desirable place to invest.

A Market Still Defined by Demand, Not Distress

According to BBVA Research, Spanish home sales are expected to fall by 7.3% in 2026, even as demand remains strong, largely because the number of homes available has not kept pace with buyer interest. BBVA also forecasts prices rising by 12% this year. Rather than a cause for concern, this simply reflects a market where good homes are in genuine demand — a dynamic that, with the right guidance, remains entirely manageable for buyers who plan ahead and have clear support through the process.

A separate report from the economic think tank Funcas this month added useful context, arguing that Spain's housing shortage stems mainly from restricted supply rather than runaway demand, and that policies aimed at boosting new housing stock would do more good than measures targeting buyers. It's a reminder that the structural issues in Spain's housing market are well understood, and increasingly, so are the solutions.

Financial Foundations Remain Solid

Mortgage foreclosures in Spain have ticked up slightly, according to the latest national data, but the report is clear that overall financial distress remains historically low. There is no sign of the kind of widespread strain that would destabilise the market. For buyers, this means the current backdrop is one of steady, well-supported growth rather than volatility — a market built on genuine demand rather than financial pressure.

Holiday Rentals: Clarity on the Horizon

Spain's short-term rental registry, previously struck down by the Supreme Court, continues to work through its legal aftermath, with the holiday rental sector now preparing compensation claims reported to be worth almost €500 million. While this story is still developing, it points toward a system that is gradually being corrected and clarified, which is good news for anyone planning to let a property in the future. Costa Meridian will continue to track these developments so buyers always have the latest, clearest picture.

The Takeaway for Buyers

Demand from international buyers is at a record high, the market's financial base remains sound, and Spain's policymakers are increasingly focused on real, supply-side solutions. For anyone considering a home on the Costa del Sol, the conditions remain steady, transparent and very much within reach — now is simply a good time to explore your options with confidence.