House prices in Andalusia rise 11.9% but lose momentum: what it means for the Costa del Sol

House prices in Andalusia rose 11.9% year on year in the second quarter of 2026, down from 13.3% in the first quarter, according to the Housing Price Index (IPV) published by Spain's National Statistics Institute (INE) on 7 September. Across Spain as a whole, prices climbed 12.2%, seven tenths of a point less than in the previous quarter: the first time the annual rate has eased since late 2023. Prices are still rising strongly, but the pace is visibly slowing, and that changes some of the calculations for anyone buying or selling on the Costa del Sol.

How much have house prices risen according to the INE?

The IPV tracks how the sale price of open-market housing changes, using administrative records that cover around 95% of each quarter's transactions, and it strips out changes in the type and quality of the homes being sold. It reflects actual transactions rather than asking prices. Seen through that lens, the second quarter still shows very steep increases, though more restrained than at the start of the year:

• Spain: +12.2% year on year and +3.4% on the previous quarter. So far in 2026, prices are up a cumulative 7.0%.
• Andalusia: +11.9% year on year and +2.6% on the quarter, with a cumulative 6.9% in the first half of the year.
• The national rate is the lowest since the first quarter of 2025, and Andalusia's is the lowest since the third quarter of 2024.
• Open-market housing has now posted 49 consecutive quarters of year-on-year increases: more than twelve years without a single fall.

Source: INE, Housing Price Index, second quarter of 2026.

The quarterly figure deserves a closer look. Andalusia saw the second-smallest price rise of any region between April and June (+2.6%), behind only Catalonia (+2.4%), while Extremadura (+5.2%) and Asturias (+4.9%) posted the biggest gains. Even so, 6.9% in just six months is still a very substantial increase.

Are new-build or resale homes rising faster?

Resale homes are rising faster. In Spain, second-hand housing became 12.9% more expensive year on year, six tenths of a point less than in the first quarter, while new-build homes rose 7.4%, their slowest pace since early 2023. Andalusia follows the same pattern: 12.5% for resale homes and 9.0% for new-builds.

Because resale homes account for a far larger share of all sales, they are what drives the index: of the 3.4 points the national IPV rose over the quarter, 3.25 came from second-hand housing. New-builds, by contrast, edged up just 1.0% in Spain and 0.4% in Andalusia between April and June.

That slowdown in new-builds needs to be read with care. The IPV records the price stated in the title deed, and many of the developments completing now were sold off-plan one or two years earlier, at the price agreed at the time. That is why the new-build index reacts with a lag, and it does not mean developers are cutting prices: new supply remains scarce, and construction output in Spain has now fallen for seven months in a row.

How does Andalusia compare with other coastal markets?

Every region and both autonomous cities recorded increases, all of them in double digits except Navarre (+9.5%). The largest were in Ceuta (+15.2%), Asturias (+15.0%) and Castile and León (+14.8%). For buyers comparing coastlines before deciding where to buy, the more useful benchmark is a different one: prices are currently rising more slowly in Andalusia than in the Balearic Islands, the Valencia region or Murcia.

Source: INE, second-quarter 2026 rates.

Growing below the national average does not make Andalusia a cheap market. After two years of double-digit increases, a reasonable reading is that prices are starting to run up against the limits of what many buyers can afford and finance.

What are prices like on the Costa del Sol right now?

The INE does not publish the IPV by province or municipality, so to get down to local detail we use our Costa del Sol market report, which each month calculates the median asking price in every municipality from the homes currently for sale. In September 2026, across 8,810 homes analysed, the median stands at €650,000 and €4,657/m².

Source: EVS PROPERTY GROUP market report, September 2026.

These are asking prices rather than completion prices, so they cannot be compared directly with the IPV, but they help put the slowdown in context. The overall median has barely changed since our August report (€4,658/m²), and the gaps between municipalities remain wide: a square metre in Marbella costs almost twice as much as one in Manilva.

What does it mean for buyers and sellers on the Costa del Sol?

Prices rising more slowly does not mean they are about to fall. With little new construction and foreign demand still firm, the likely outlook is for prices to keep climbing, albeit with less momentum than over the past two years. In practice:

• If you are buying: a market that is gaining speed more slowly leaves a little more room to negotiate, especially on homes that have been listed for a while or came to market at an ambitious price. Do not count on widespread price cuts, but compare against completion prices, not just listings.
• If you are selling: the asking price matters more than it did a year ago. A valuation grounded in the real market is the best way to avoid a drawn-out sale or a price cut later on.
• If you are investing: resale homes are still driving the market and new-builds are cooling in the index, but on the coast they remain in short supply. Run your numbers with today's financing costs, not last year's.
• If you need a mortgage: the April-to-June figures do not yet fully reflect the rising cost of credit. The ECB raised rates in June and again in September, to 2.5%, and the Euribor is hovering around 3.1%, its highest level since August 2024.

Conclusion

The INE figures confirm a change of pace, not of direction. House prices in Andalusia are still rising at double-digit rates, but with less force than at the start of the year, and on the Costa del Sol the median asking price is holding steady at high levels. Making a sound decision means looking beyond the headline: the type of home, the municipality and the actual completion price matter more than any regional average.

If you are thinking of buying, selling or investing on the Costa del Sol, EVS PROPERTY GROUP can help you apply these figures to your own situation, with a valuation grounded in the real market and our monthly price report by municipality.

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