TOP3 locations on the Costa del Sol that will grow the fastest in 2026. Our forecasts
The Costa del Sol has been attracting investors and people looking for a second home for years due to its unique climate, extensive infrastructure, and dynamic real estate market. We predict that in 2026 these TOP3 locations on the Costa del Sol will develop the fastest, offering the greatest potential for property value growth and attractiveness for new residents and investors. Here are our forecasts based on data analysis from Idealista portals, Registradores.org, reports from Spanish notaries, and investment banks.
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Estepona – the new star of Costa del Sol
Estepona has been experiencing a real investment boom for several years now, and everything indicates that this trend will continue in 2026. The city, often called the “garden of the Costa del Sol,” attracts both investors and people looking for a peaceful place to live. In recent years, Estepona has invested huge resources in revitalizing the town center, expanding the promenade, creating new parks, and sports infrastructure. Numerous new residential investments are being built here, including premium apartments on the seafront and modern housing estates with full infrastructure.
According to Idealista data, property prices in Estepona increased by over 10% in 2024, and the number of transactions remains at a very high level. Registradores.org reports that foreigners account for more than 40% of property purchases in Estepona, indicating the international attractiveness of this location. An additional advantage is the proximity to Marbella and excellent transport connections to Malaga and Gibraltar.
In 2026 we expect further price increases, especially in the segment of new apartments and villas near the beach and in districts such as New Golden Mile and Selwo. Estepona is becoming an alternative to the more expensive Marbella, offering a high quality of life and modern infrastructure.
Mijas – dynamic development and new investments
Mijas is one of the most diverse municipalities on the Costa del Sol, encompassing both the charming white town of Mijas Pueblo and modern estates along the coast (Mijas Costa, La Cala de Mijas). In recent years, Mijas has been attracting more and more investors thanks to attractive prices, infrastructure development, and numerous new development projects.
According to reports from Spanish notaries, in 2025 the number of transactions in Mijas increased by over 12% compared to the previous year, and property prices grew faster than the average for the entire Malaga province. The surroundings of La Cala de Mijas are developing particularly dynamically, where modern apartment buildings, estates with swimming pools and recreational areas, as well as luxury villas are being built.
Mijas is also gaining popularity thanks to its proximity to Malaga airport, excellent road connections, and a rich recreational offer – from golf courses to wide beaches. In 2026 we forecast further demand growth, especially among families and people looking for a second home in southern Europe.
Benalmádena – investment potential and lifestyle
Benalmádena is a location that in recent years has been gaining increasing recognition among investors and people looking for properties on the Costa del Sol. The city offers not only beautiful beaches and a modern marina but also a rich tourist, entertainment, and healthcare infrastructure. New residential investments are being built in Benalmádena, and property prices – according to Idealista – rose by over 8% in 2025.
Reports from investment banks indicate that Benalmádena is attracting more buyers from Northern Europe who appreciate both the climate and the availability of high-level services. An additional advantage is the proximity to Malaga and quick access to the airport, making Benalmádena an ideal place both for permanent residence and for investment in short-term rentals.
In 2026 we expect further price increases, especially in the segment of seafront apartments and modern estates with full infrastructure. Benalmádena is a location that combines lifestyle, convenience, and investment potential.
Summary and forecasts for 2026
The Costa del Sol remains one of the most attractive real estate markets in Europe. Our forecasts for 2026 indicate that these TOP3 locations on the Costa del Sol: Estepona, Mijas, and Benalmádena will be the places with the fastest property value growth. Key factors include infrastructure development, new development investments, international demand, and high quality of life. Investors should pay special attention to these TOP3 locations on the Costa del Sol if they are looking for places with the greatest growth potential in this region.
Sources:
- Registradores de España
- Idealista
- Consejo General del Notariado (Spanish Association of Notaries)
- Investment bank reports, including CaixaBank Research, BBVA Research
- Official statistical data from Junta de Andalucía
- Own analyses of Dream Property Marbella
