{"id":4178,"date":"2026-11-05T13:32:47","date_gmt":"2026-11-05T12:32:47","guid":{"rendered":"https:\/\/www.marbellaforsale.com\/blog\/?p=4178"},"modified":"2026-11-05T13:32:47","modified_gmt":"2026-11-05T12:32:47","slug":"property-prices-rise-as-demographics-shift","status":"publish","type":"post","link":"https:\/\/www.marbellaforsale.com\/blog\/property-prices-rise-as-demographics-shift\/","title":{"rendered":"Property Prices Rise as Demographics Shift"},"content":{"rendered":"
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A younger generation of buyers is showing up<\/p><\/div>\n

Spain’s property market continues to record significant price growth, although the latest figures suggest that the pace of increases may be beginning to moderate. According to Fotocasa’s October 2026 Property Index, the average asking price of resale homes across Spain has risen by 13.2% over the past year<\/strong>, reaching \u20ac3,158 per square metre.<\/p>\n

The figures highlight a housing market where affordability remains a major concern, particularly for buyers entering the market for the first time. At the same time, separate research reveals another important development: the profile of buyers considering newly built homes is becoming younger, increasingly family-oriented, and concentrated among higher-income households.<\/p>\n

For the Costa del Sol, where demand spans permanent residences, second homes, and investment properties, these developments offer valuable insight into how the Spanish property market is evolving.<\/p>\n

Property Prices in Spain: 72 Consecutive Months of Annual Growth<\/h3>\n

October 2026 marked the 72nd consecutive month of year-on-year resale price increases<\/strong> in Spain, extending a trend that began in November 2020.<\/p>\n

Nationally, asking prices increased by 0.7% compared with September and 13.2% compared with October 2025.<\/p>\n

To illustrate the financial impact, data shows that the average advertised price of an 80 m\u00b2 home has increased from \u20ac223,129 to \u20ac252,652 in just twelve months. That represents approximately \u20ac29,500 more for the same-sized property<\/strong>.<\/p>\n

Although prices continue to rise, the rate of growth is showing signs of moderation. Higher mortgage borrowing costs and the increasing financial requirements associated with purchasing a home are beginning to constrain demand.<\/p>\n

The proportion of people looking to buy has declined by one percentage point over six months, suggesting that affordability is increasingly influencing purchasing decisions.<\/p>\n

However, slower price growth should not be confused with falling property prices. The latest data still indicates widespread increases across the country.<\/p>\n

M\u00e1laga Remains Among Spain’s Most Expensive Property Markets<\/h3>\n

The regional figures are particularly relevant to buyers and sellers on the Costa del Sol.<\/p>\n

Andaluc\u00eda recorded an annual resale price increase of 8.6%<\/strong>, bringing the regional average to \u20ac2,920 per square metre.<\/p>\n

M\u00e1laga province, however, stands considerably above that regional average.<\/p>\n

At \u20ac4,572 per square metre<\/strong>, M\u00e1laga ranks as Spain’s fourth most expensive province for resale property, behind only the Balearic Islands, Madrid, and Gipuzkoa.<\/p>\n

M\u00e1laga city also features prominently in the national rankings, with an average advertised price of \u20ac4,359 per square metre.<\/p>\n

These figures reinforce the importance of M\u00e1laga province within Spain’s property market, although substantial differences exist between individual municipalities, neighbourhoods, and property types.<\/p>\n

In Marbella, Benahav\u00eds<\/a>, Estepona<\/a>, and surrounding areas, factors such as location, sea views, construction quality, amenities, and proximity to the coastline can produce considerable variations in asking prices.<\/p>\n

For buyers, understanding these local differences is essential when comparing properties. For sellers, realistic pricing based on comparable properties remains an important part of an effective marketing strategy.<\/p>\n

The New-Build Buyer Is Getting Younger<\/h3>\n

While resale property prices continue to attract attention, another significant change is taking place in Spain’s new-build market.<\/p>\n

According to the, 35% of buyers considering newly built properties are now under 35<\/strong>, compared with 23% in 2024.<\/p>\n

The average age of this buyer group is 41, three years younger than in 2024.<\/p>\n

This suggests that newly built homes<\/a> are attracting increasing interest from younger households, particularly those looking for modern specifications, energy efficiency, and properties suited to their longer-term residential needs.<\/p>\n

However, younger does not necessarily mean less financially established.<\/p>\n

The same research shows that 67% of prospective new-build buyers belong to upper-middle or high socioeconomic groups<\/strong>.<\/p>\n

This highlights an important distinction: while younger buyers are becoming more prominent, purchasing a newly built home remains financially challenging for many households.<\/p>\n

Families and Former Tenants Are Driving Demand<\/h3>\n

The changing buyer profile also reveals how new-build properties are being used.<\/p>\n

Data suggests that 35% of prospective buyers live with a partner, while another 36% live with a partner and children.<\/p>\n

Furthermore, 37% previously lived in rented accommodation, compared with 44% who already owned their home.<\/p>\n

These figures suggest that new-build demand is not driven exclusively by investors or existing homeowners purchasing additional properties. A substantial proportion of buyers are seeking a permanent home or making the transition from renting to ownership.<\/p>\n

Indeed, 82% of buyers considering new-build properties intend to use them as their main residence<\/strong>.<\/p>\n

Investment interest is nevertheless increasing, with the proportion purchasing for investment rising from 4% in 2025 to 7% in 2026.<\/p>\n

What Does This Mean for the Costa del Sol Property Market?<\/h3>\n

The combination of rising prices and changing buyer demographics has several implications for the Costa del Sol.<\/p>\n

First, affordability is likely to play an increasingly important role in property selection. Buyers may need to compare locations more carefully, consider different property types, or assess the relative advantages of resale and new-build homes<\/a>.<\/p>\n

Second, modern residential developments may appeal to a broader demographic than traditionally associated with the Costa del Sol’s second-home market.<\/p>\n

Energy-efficient construction, practical layouts, outdoor living space, parking, and access to schools and everyday services are all relevant considerations for families seeking permanent accommodation.<\/p>\n

Third, demand for newly built homes may remain competitive where supply is limited, particularly in established residential areas with good infrastructure.<\/p>\n

Andaluc\u00eda accounts for 17% of the buyers in Fotocasa’s research who have considered purchasing new-build property, second only to Madrid at 19%.<\/p>\n

Although these are regional rather than Costa del Sol-specific figures, they demonstrate the importance of Andaluc\u00eda within Spain’s new-build market.<\/p>\n

A More Selective Market Ahead?<\/h3>\n

Spain’s property market is entering an interesting period.<\/p>\n

Prices remain elevated, and the latest annual increases are substantial. Nevertheless, growing affordability pressures suggest that buyers may become increasingly selective about the properties they purchase and the prices they are prepared to pay.<\/p>\n

At the same time, the emergence of younger, family-focused new-build buyers could influence the types of residential developments that attract demand in the coming years.<\/p>\n

For the Costa del Sol, the key will be understanding how these national trends translate into individual locations and market segments.<\/p>\n

At Marbella For Sale<\/strong>, we help buyers navigate the resale and new-development markets across Marbella, Benalmadena<\/a>, Casares<\/a>, and the wider Costa del Sol, providing property comparisons, local market insight, and guidance throughout the purchasing process.<\/p>\n

Whether you are considering a permanent residence, holiday home, or investment property, exploring the available options and understanding current market conditions can help you make a more informed decision.<\/p>\n

Explore our properties for sale and new developments on the Costa del Sol, or contact Marbella For Sale for personalised assistance.<\/p>\n

*Sources: Fotocasa Property Index<\/a>, October 2026 (published 3 November 2026), and Fotocasa Research, The New-Build Housing Market in 2026<\/a> (reported 28 October 2026). All quoted property prices are advertised asking prices.<\/span><\/p>\n\t

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