Spain's Home Sales Cool in May, Yet Andalusia Keeps Growing

The latest figures from the Association of Land Registrars paint a picture of a cooling housing market in Spain: in May, property sales recorded their fifth consecutive monthly decline. But within that overall picture, there is one exception that is of particular interest to us at EVS, and that is Andalusia, the only region that continues to grow. We analyse the figures and, above all, what they mean for anyone thinking of buying in Malaga or on the Costa del Sol.

Spain cools down: a fifth straight drop in home sales

In May, 56,468 home sales were signed across Spain, 7.6% fewer than a year earlier. This is not a one-off: it's the fifth month in a row of declines, a sign that the market has entered a calmer phase after the strong momentum of previous years.

The sharpest falls were concentrated in Melilla (-31%), Cantabria (-26.2%), the Balearic Islands (-21.4%) and Murcia (-19.8%). Overall, almost the entire country recorded fewer transactions than the year before.

Andalusia: the exception that grows — and leads

Against that broad trend, Andalusia was the only autonomous region to increase its home sales, rising 4.3% year on year. And it isn't just growing: it's also the region with the most transactions, at around 12,000 sales in the month — ahead of Catalonia (8,854), Valencia (8,588) and Madrid (6,143).

For a buyer or investor on the Costa del Sol, this contrast is telling. While much of the country eases its pace, demand in the south is holding firm. Behind it lie structural factors we know well: the climate, the appeal to international buyers, the quality of life, and a supply that blends primary homes, second homes and investment property.

Mortgages are holding up better than sales

Mortgage lending offers another interesting angle. In May, 41,988 new mortgages were taken out, just 0.5% fewer than a year earlier. It's the first decline after 22 straight months of increases, but a minimal dip compared with the drop in home sales.

The registrars themselves summarise it as follows: the trend in mortgages shows “a later and less pronounced slowdown” than that of property sales. In other words, financing continues to flow with relative normality.

One figure confirms it: mortgages now equal 74% of home sales, the fifth month running above 70%. This shows that a growing share of transactions rests on credit — good news for anyone who needs to finance their purchase.

What this means if you're buying on the Costa del Sol

A cooling national market isn't bad news for the buyer; on the contrary, it usually means less pressure and a calmer decision process. But Andalusia is playing its own game, and these are the nuances worth keeping in mind:

• Demand on the Costa del Sol remains solid, underpinned by international buyers and the area's residential appeal.
• Financing remains accessible: mortgages have barely fallen and still back the majority of transactions.
• The cooldown in other regions may open buying opportunities in a less competitive national environment.
• Quality, well-located property in Malaga and along its coast holds its value even when the wider market slows.

Conclusion

The underlying message is that Spain is breathing more slowly, but Andalusia keeps moving forward. For anyone eyeing the Costa del Sol, this reinforces a view we hold at EVS: the south isn't just another market — it has its own dynamic and demand that weathers the cycles. If you're weighing a purchase or an investment in the area, now is a good time to review your options calmly and with sound guidance.

At EVS we know the Malaga and Costa del Sol market in detail. If you'd like to find out which opportunities fit your goals, get in touch with us and explore our available properties.