British buyers account for 15% of reservations at major Costa del Sol developments as Spanish property prices climb 14.3% year-on-year. Foreign purchases across Spain hit a record 97,500 in 2025. What rising prices and sustained demand mean for British buyers planning a Costa del Sol purchase in 2026.
6 May 2026
Spanish property prices have climbed 14.3% over the past year according to TINSA, one of Spain's leading property valuation firms, as new figures from homebuilder Taylor Wimpey España reveal how British buyers continue to drive demand on the Costa del Sol. Despite post-Brexit complexities, UK nationals remain at the forefront of foreign purchasing activity in one of Spain's most sought-after coastal markets, with data from the Property Registrars (Colegio de Registradores) confirming that foreign buyers purchased a record 97,500 properties across Spain in 2025—the highest figure ever recorded.
Britons account for 15% of all homes reserved at Almazara Boutique Residences in Málaga, placing them at the top of the buyer rankings at this development near the traditional village of Istán. Buyers from Spain are the next largest group, with the development attracting buyers from 25 nationalities in total. The data provides a clear snapshot of who is purchasing property on the Costa del Sol and where international demand remains strongest. The typical buyer profile is generally aged between 30 and 59 years old and married, according to Taylor Wimpey España's buyer data, suggesting a mix of second-home purchasers, relocators, and those planning permanent moves to the region.
Foreigners purchased 97,500 properties across the country in 2025, the highest figure ever recorded by the Property Registrars, although their market share decreased slightly to 13.82% of all annual transactions. This represents a record number in absolute terms, even as the percentage share dipped marginally. Crucially, in seven provinces, foreign buyers exceed 20% of all transactions, with Alicante, Málaga and Santa Cruz de Tenerife leading the way. These coastal hotspots remain magnets for international purchasers seeking sunshine, lifestyle, and investment opportunities in Spain.
Spanish property prices have risen by 14.3% in the past year, according to valuation firm TINSA, underscoring the sustained upward pressure on values across the country. This price growth reflects strong buyer demand combined with chronic supply shortages, particularly in coastal areas where buildable land is limited. For foreign buyers, this means acting decisively and understanding that properties in prime locations are moving quickly. The combination of limited inventory and multiple nationalities competing for the same stock has created highly competitive market conditions, especially in well-connected towns near the coast.
The 14.3% annual price increase has significant implications for those looking to purchase in Spain. First, it confirms that waiting for prices to fall is unlikely to be a viable strategy in 2026, particularly in high-demand coastal provinces like Málaga. Second, foreign buyers should be prepared for competition—not just from other international purchasers, but from Spanish nationals who are also active in the market. Third, the data on British buyer activity demonstrates that post-Brexit administrative hurdles have not deterred UK nationals from investing in Spanish property, though buyers must now navigate additional requirements including residency rules (NIE number applications), tax considerations, and potential currency fluctuations between sterling and the euro.
With 97,500 foreign purchases recorded in 2025 and prices climbing at double-digit rates, prospective buyers should take several practical steps.
First, secure your NIE (Número de Identificación de Extranjero) — the tax identification number required for all property transactions in Spain — as early as possible, as processing times can vary.
Second, arrange your financing in advance if you require a mortgage, as Spanish banks typically lend up to 70% of the valuation for non-residents.
Third, factor in all purchase costs: in Spain, buyers pay transfer tax (ITP) on resale properties at rates of 8-10% depending on the region, or VAT (IVA) at 10% plus stamp duty (AJD) at around 1-1.5% on new builds. The true cost of buying typically adds 11-13% on top of the purchase price once these taxes plus notary, registry, and other hidden costs are included. Use our free Cost Calculator to model the full picture for a specific property.
Fourth, get the legal record verified before you commit. A qualified bilingual lawyer is essential — they handle the contract from arras through completion and represent your interests at notary. Before that, what's worth doing yourself is checking the property's legal record. PropDue's Legal Review retrieves the nota simple from the Land Registry and explains in plain English what's on it — embargos, undisclosed mortgages, planning issues, registered size that doesn't match what you saw. Worth knowing before you put down arras.
Finally, be prepared to move quickly when you find the right property — well-priced homes in desirable locations are spending minimal time on the market in the current environment.
Get the title, ownership, and public records checked before you commit.
Legal Review — €79