Market Insight · November 2026

Protests, Politics and Property: Why the Costa del Sol Is Still Open for Business

Spain’s housing debate is real, and it deserves to be taken seriously. But the data from southern Spain tells a clear story: demand for homes, holidays and rentals on the Costa del Sol has kept growing through every headline.

A debate worth listening to

If you follow Spanish news, you would no doubt have seen the images: thousands of people that were marching through Málaga’s historic centre, banners about rents and wages, and back in September an encampment outside the city hall. These protests come from a genuine place. Rents and prices across Málaga province have climbed far faster than local salaries, and many young people and families who have lived here for generations are finding it hard to stay in the neighbourhoods they grew up in.

As a business that lives and works on this coast, we understand that. Our staff, our neighbours and many of our clients feel the same pressures. Housing affordability is one of the defining questions in Spain right now, and the solutions will we hope come from a mix of new building, smarter regulation & non-political based investment.

At the same time, we are regularly asked by owners, buyers and investors a simple question: “Is it still a good idea to buy, sell, rent or b&b property in southern Spain?” Rather than offer opinions, we decided to let the numbers answer.

The Costa del Sol in six numbers

Protests vs. demand: what actually happened next

The most useful test of whether protests affect business is simple: look at what visitors, buyers and tenants did in the weeks and months after each one. Here is the timeline.

Málaga: one of Spain’s fastest-growing cities for tourism, tech and international residents.

The honest picture: a more selective market, not a weaker one

We don’t think it helps anyone to pretend everything only goes up. Transaction numbers have cooled in 2026. Across Spain, home sales in the first half of the year were 2.6% lower than in 2025, which itself was the busiest year in 18 years. In Marbella, Estepona and Benahavís, sales in H1 2026 fell by around a fifth compared with an exceptional H1 2025.

But here is the key point: fewer sales have not meant lower prices. Average prices in that same “Golden Triangle” rose 15.5% year-on-year, and the second quarter was busier than the first. Analysts describe the market as moderating, with buyers becoming more careful about location, quality and pricing. For sellers, that means correct pricing from day one matters more than ever. For buyers, it means a little more room to negotiate and choose.

International demand also remains a pillar. Foreign buyers made up around 37% of residential purchases in Málaga province in Q2 2026, rising to 61% in Marbella and 68% in Estepona. Andalucía recorded more home sales than any other Spanish region in 2025.

Politics and regulation: what has actually changed

2026 has been a busy year politically. Andalucía held regional elections in May, with housing among the central campaign issues, and a new governing arrangement has followed. Nationally, a general election is due by 2027. Here is a plain summary of the measures that matter most to property owners and investors:

• Málaga city tourist-let freeze: No new tourist-flat licences in Málaga city until 2028. In July 2026 this was extended to new hotels, hostels and similar accommodation on residential land. Existing licensed properties are unaffected, and the rules differ in other Costa del Sol municipalities.
• The proposed 100% tax on non-EU buyers: This widely reported proposal has not become law. Reuters reported in March 2026 that it had stalled in Congress for lack of parliamentary support. EU buyers would not be affected in any case.
• Regional housing priorities: Andalucía’s new regional agreement focuses on who can access public aid, subsidised housing and social rents. It is aimed at the public housing system rather than private sales and lettings.
• Short-term rental tax: The national government has proposed applying 21% VAT to short-term tourist rentals. Owners should keep an eye on its progress and take advice on how it would apply to them.

None of this closes the door on property business. It changes the rules of the game, and markets with clear rules tend to reward owners and investors who are well informed and properly licensed.

Quality homes in well-connected locations remain in short supply along the coast.

What this means for you

Business as usual, with care

The Costa del Sol has been through property cycles, currency swings, Brexit, a pandemic and now a national housing debate. Each time, the fundamentals have held: over 300 days of sunshine, excellent air links, world-class golf and beaches, quality healthcare and a growing year-round international community.

We believe two things can be true at once. Spain needs more affordable homes for the people who live and work here, and the Costa del Sol remains one of Europe’s most resilient places to buy, sell and rent property. Doing business responsibly, with properly licensed lets, fair rents and good relationships with our communities, is how we intend to keep it that way.