Real estate investment in Spain surged 57% in the first half of 2026, reaching €12.4bn, within a European market that moved €53bn in the second quarter alone (+6% year on year), according to estimates from the consultancy Savills. Put differently: the institutional money that sat still through the rate-hike cycle is back, and Spain is one of the two destinations where it has come back hardest. If you are buying a home on the Costa del Sol, that is not an economics-page headline: it is the reason there is more competition for good assets and less room to wait things out.
How much is Europe investing in real estate in 2026?
The second quarter closed with €53bn invested in European real estate assets, 6% more than in the same period a year earlier. It is not an explosion — and that is precisely the interesting part: this is an orderly recovery, driven by deals that pencil out rather than by euphoria. Within that moderate overall advance, two markets have clearly broken away from the pack: Sweden and Spain.
| Benchmark | Investment volume | Year-on-year change |
|---|---|---|
| Europe (Q2 2026) | €53bn | +6% |
| Sweden (H1 2026) | €12.8bn | +68% |
| Spain (H1 2026) | €12.4bn | +57% |
The fact that Spain is running virtually neck and neck with Sweden in half-year volume says a great deal about where the country stands. Sweden is bouncing off a severe correction from a very low base; Spain, by contrast, is growing on top of a market that was already working. That is the difference between recovering lost ground and gaining new ground.
Why is capital returning to Spain right now?
The report points to a shift in investor criteria: they have moved from chasing aggressive capital gains to prioritising defensive sectors with solid operating fundamentals. Translated, they want assets that generate predictable income even when the economy wobbles. Spain fits that profile for reasons that are visible at street level:
- Real, continuous demand rather than speculative demand: people who want to live, retire or work remotely from here all year round.
- Limited new-build supply along the coast, with scarce land and long licensing timelines in the most sought-after municipalities.
- Financing that is accessible again for quality product, after two years in which credit was the main brake.
- Yields expected to stay stable through the rest of the year across most sectors, which lowers the risk of overpaying today.
What is the living segment and why does it take 30% of the money?
Close to 30% of all volume invested in Europe went into the so-called living segment: professionally managed rental housing, student accommodation and senior living. It is the sector where the new investor mindset shows most clearly, because these are assets that stay occupied whatever happens. And that is the point that matters to a private buyer: institutional capital and Spanish REITs are increasingly competing for the same well-located urban and coastal housing a family is looking for. They are not bidding on your specific villa, but they do push up land, new-build and rental stock in the very same areas.
How does this translate into Costa del Sol prices?
Institutional investment does not set the price of a villa in Mijas or an apartment in Estepona, but it sets the mood. When capital comes in, new-build stock sells earlier, owners negotiate with less urgency and good assets spend less time on the market. These are the median asking prices in our active portfolio right now, updated monthly in our Costa del Sol market report:
| Municipality | Median price | Price per m² |
|---|---|---|
| Marbella | €950,000 | €5,873/m² |
| Estepona | €645,000 | €4,632/m² |
| Malaga capital | €631,000 | €4,688/m² |
| Benalmádena | €599,000 | €4,424/m² |
| Mijas | €545,000 | €4,163/m2 |
| Costa del Sol (overall) | €650,000 | €4,621/m² |
These are asking prices, not closing prices, so they should be read as a thermometer rather than a valuation. Even so, the spread between €4,100 and €5,900 per square metre within a single stretch of coast explains why the choice of municipality now matters more than the choice of property type.
Three practical takeaways if you are thinking of buying
- The waiting cycle is over. With investment growing at double digits and rates already normalised, the wait-for-prices-to-drop scenario no longer has any numbers behind it.
- Asset quality beats discount. Professional investors are paying for income security and location, not for bargains; the same logic applies to a private purchase.
- Financing is a lever again, not an obstacle. If credit is flowing for quality product, it pays to compare bank offers before closing any deal.
In summary
Big money has decided that Spain is one of the best places in Europe to put real estate capital in 2026, and it has done so on conservative terms: stable income, good assets, disciplined pricing. That same standard is what should guide a private purchase on the Costa del Sol. If you want to know what this context means for a specific area or a specific budget, at EVS PROPERTY GROUP we analyse the market municipality by municipality and can tell you, with data, whether the timing and the price work for you.
Frequently asked questions
How much real estate investment did Spain receive in 2026?
Spain recorded €12.4bn of real estate investment in the first half of 2026, 57% more than in the same period a year earlier. That is the second-largest volume in Europe, behind only Sweden, with €12.8bn.
Is it a good time to invest on the Costa del Sol?
Current indicators are favourable: institutional capital coming in, accessible financing for quality product and yields expected to remain stable for the rest of the year. Today's risk lies less in timing than in overpaying for a poorly located asset.
Are house prices going to fall on the Costa del Sol?
Nothing in the current data points to a correction: coastal new-build supply is limited, foreign demand is structural and professional capital is coming in rather than pulling out. The reasonable expectation is stability with moderate rises in areas with the least available land.
Can foreigners buy property in Spain?
Yes, with no restrictions based on nationality or residency. All you need is an NIE, the foreigner identification number, and a Spanish bank account to complete the purchase before a notary.
What is the living segment in real estate investment?
It groups professionally managed rental housing, student accommodation and senior living. In 2026 it accounts for close to 30% of all European real estate investment.
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
