“I’ll wait until prices fall”: is it too late to buy on the Costa del Sol?

This may be the most important question many people are sitting with: is it too late to buy property on the Costa del Sol? Plenty of people have told themselves they will wait until prices fall. The problem is that nobody knows when, or whether, the big fall will come. The market can of course correct, and interest rates, the economy and political decisions can all affect it, which should be taken seriously: the European Central Bank raised its key rates in both June and September 2026. Activity has cooled a little too, with 5.1 per cent fewer home sales registered in Spain in July 2026 than a year earlier. But prices have not followed: Spain's official house price index was 12.2 per cent higher in the second quarter of 2026 than a year before. Waiting for the perfect moment can also mean waiting while good homes get more expensive.

So perhaps it is less about finding the perfect day to buy, and more about finding the right home, in the right area, at the right price. Those three things together matter far more to how the purchase feels in five years than exactly which month you signed. A home bought too expensively in the wrong area does not get better just because the market rose. The right home bought at a sensible price can withstand quite a lot.

One thing we have seen change in recent years is that many buyers who would once have bought an older resale home are now looking at new builds. Modern developments on the Costa del Sol often offer large terraces, energy-efficient homes, swimming pools, gyms, co-working spaces, garages and attractive communal areas. That can appeal to buyers looking for a permanent home, a holiday home or a long-term investment, and running costs in a new home are usually lower than in a 30-year-old flat that will soon need renovating. Our article on new build or resale sets out the pros and cons of each.

At the same time, it pays to be selective. Not every development is an equally good investment. Location, price per square metre, build quality, views, community fees, letting potential and future development in the area should all be weighed up before you buy. The last point is easy to overlook: a flat with an open view today may have a new block in front of it in three years, and that will not be in the brochure. Always check, too, that the developer has a bank guarantee or insurance for the stage payments you make: it is a legal requirement for new builds in Spain, and it is your safety net if something goes wrong during construction.

Whether you end up choosing a new build or a resale home, our advice is the same: be ready before you find the property, not afterwards. Have your NIE number (foreigner’s identification number), a Spanish bank account and an independent lawyer in place, and have a clear idea of budget, area and how you will use the home. Then you can act when the right one comes along, instead of spending weeks on paperwork while someone else signs. That is often the difference between getting the home you wanted and having to start again. Our buying guide takes you through each step.

At Solkystmegleren we help you find resale homes, new developments and investment opportunities along the whole Costa del Sol. We know both the popular areas and the places many buyers have yet to discover. And perhaps most importantly, we do not just help you find a home, we help you find the right one. Get in touch for free, no-obligation advice, and we will work out together which area, type of property and investment suits you best.

Please note that nothing in this article is investment advice. Buying property abroad involves risk, and past price growth is no guarantee of future returns. Always use an independent lawyer and make your own assessment before you sign.