Home sales rose 3.4% and mortgage signings rose 2.3% in August compared with the same month in 2025, according to Spain's National Statistics Institute (INE). It's the second year-on-year rise in sales this year and the best August for mortgages since 2022 — though the average loan has also hit a record high: €181,285, up 7.7% year-on-year.
What the INE's August data show
49,319 homes changed hands across Spain in August, up 3.4% from August 2025. New-build homes made up 21.3% of transactions (+4.9%) and resales the remaining 78.7% (+3%). At the same time, 33,841 mortgages on homes were signed, up 2.3%. That said, the year-to-date picture (January–August) is still negative: sales are down 2.3% and mortgage signings up 5.1%, so August looks like a one-month improvement within a sales trend that is still downward, not a confirmed turn in the cycle.
Bigger mortgages, slightly more expensive
The average interest rate on home mortgages climbed to 3.08% in August, the highest since January 2025 and the second straight month above 3%. Even so, 64.1% of mortgages signed were fixed-rate (the highest share since February) versus 35.9% variable, and the average term held at 26 years. Capital lent for home purchases topped €6,134 million for the month, up 10.2% year-on-year.
Which regions are rising and which are cooling
Most autonomous regions saw more sales than a year earlier, with the biggest jumps in Extremadura (+32.1%), Cantabria (+21.7%) and Murcia (+12.6%). Andalusia joined the rising group with a modest but positive +0.7%. At the other end, Madrid (-2.6%) and the Balearic Islands (-3.8%) were the only large markets where sales fell in August, which industry analysts partly attribute to some demand pulling back in the face of high prices. The INE doesn't break this down by province, so there's no official figure specifically for Malaga or the Costa del Sol: to track the real local pulse it helps to use market-specific sources, such as the monthly report we keep at EVS.
| Area | Median price | Median €/m² |
|---|---|---|
| Marbella | €950,000 | €6,096 |
| Málaga city | €625,000 | €4,955 |
| Fuengirola | €560,000 | €5,417 |
| Costa del Sol (overall) | €650,000 | €4,738 |
These are asking prices (not closing prices) across more than 8,200 active listings, recalculated every month from our own catalogue. You can check the full Costa del Sol market report covering every municipality, updated as of October 2026.
What this means for buying or investing in the Costa del Sol
August's snapshot is of a market holding up, but with mortgages that are bigger and somewhat pricier than a year ago: today's buyer is borrowing more on average, at a slightly higher rate than in 2025, while still mostly favouring the safety of a fixed rate. On the Costa del Sol this comes on top of supply that, by our own tracking, shrank during the third quarter while demand held up, and prices that, via independent appraisals, keep rising strongly along the Mediterranean coast. Less stock, steady demand and somewhat tighter financing conditions together make it worth nailing down your budget and mortgage type before you start looking, and getting an up-to-date valuation of the home you want to buy or sell.
Conclusion
August leaves a national market breathing a little easier on sales and mortgages, with Andalusia among the regions adding and Madrid or the Balearics among the few subtracting. On the Costa del Sol, where there's no official local figure, supply and appraisal data point the same way: less stock and firm prices. If you're weighing buying, selling or investing in the area, at EVS we can help with an up-to-date valuation and tailored advice.
Frequently asked questions
Are home sales rising in Spain in 2026?
In August they rose 3.4% year-on-year, the second rise of the year, but the January–August total is still 2.3% below 2025. It's a one-month improvement, not a confirmed trend change.
What's the average mortgage interest rate in Spain right now?
3.08% in August 2026, the highest since January 2025. Even so, 64.1% of mortgages signed were fixed-rate.
What does the average mortgage cost in Spain?
The average amount borrowed reached €181,285 in August, a record high and 7.7% more than a year earlier.
Are home prices rising in Andalusia and the Costa del Sol?
Sales in Andalusia rose 0.7% in August, a modest gain. The INE doesn't publish prices by province; per our October 2026 market report, the median price on the Costa del Sol is €650,000 (€4,738/m²), with Marbella leading.
Is it a good time to buy on the Costa del Sol?
The national market is recovering moderately, Andalusia is adding, and on the Costa del Sol supply is shrinking while prices hold firm. There's no one-size-fits-all answer: it depends on budget, mortgage type and area, so it's worth getting an up-to-date valuation before deciding.
What next? The most useful thing after reading is to look at the real market: browse properties by city or tell us on WhatsApp what you are looking for — area, budget, timing — and we will prepare a tailored selection, with no obligation.
You may also find useful: sell your property invest on the Costa del Sol free valuation monthly price report
