Why new-build homes on the Costa del Sol are in short supply – and what it means for buyers

Anyone who has looked at new homes on the Costa del Sol recently will recognise the pattern: a well-placed project launches, the best apartments are reserved within weeks, and the next phase comes out at a higher price. It can feel as if the market is running away from you. The figures show why – and, more usefully, what you can do about it.

Demand is running well ahead of supply

According to Savills’ Obra Nueva Costa del Sol 2025/26 study, more than 12,000 new-build homes were sold on the Costa del Sol in 2025 (12,265, as reported by Qué! and Euro Weekly News). At the same time, the available new-build stock stood at just 5,328 homes. The two figures are not a like-for-like comparison – one is a full year of sales, the other a snapshot of what is on the market – but together they show how quickly new supply is absorbed.

Savills also notes that some well-positioned developments sell 30–50% of their homes before construction even starts. For buyers, that means the widest choice of layouts, floors and views is often available only at the very beginning of a project.

Why so few new homes are being built

The short answer is land and time. Ready-to-build plots in good coastal locations are scarce, and turning planned land into homes takes years of planning procedures.

A separate Savills study, Visión Málaga, reported by idealista in October 2026, puts numbers on the bottleneck in Málaga city. Almost 30,000 homes are planned in the city’s main development areas over the next decade, 12,579 of them protected (affordable) homes. Yet only about 10% of the land currently going through the planning process could be built on within five years, and 45–50% within ten years even in a very favourable scenario. Savills estimates that faster procedures could add 8,000–10,000 homes. Meanwhile, INE projections cited by Savills point to the population of Málaga province growing by around 254,000 people – more than the planned homes could house.

Where the new homes are

New supply is concentrated in a handful of towns. Savills found that Estepona accounts for 28% of the coast’s initial new-build supply, Mijas Costa for 18% and Fuengirola for 16%. International buyers make up more than half of new-build demand in Marbella, Mijas Costa and Fuengirola.

For buyers who are flexible on location, that is where most of the choice is – Estepona alone accounts for more than a quarter of new supply. You can browse current options on our Projects in Estepona page or across the whole coast on our new developments search.

What it means for prices

Savills puts the average price of new-build apartments on the Costa del Sol at €5,725 per m² at the end of 2025 – up 23% on the year, as reported by Qué! and Euro Weekly News – and new detached homes at around €6,379 per m². These are averages across all new builds on the coast, from compact apartments to large villas, and they are pulled upwards by prime projects: according to the same reports, luxury new-build apartments in Marbella average over €8,000 per m², about 41% above the coast-wide average. The average new-build apartment on the coast now costs just over €1 million and the average new detached home around €2.97 million, according to the same reports – again reflecting a supply that leans towards the top end, with prime and super-prime homes making up around 14% of new-build supply. Equally, many good-quality homes in towns such as Fuengirola, Mijas or Manilva are priced well below the headline figure.

Looking ahead, Savills’ Costa del Sol 2026–2027 outlook projects cumulative increases of 13–16% in residual land values (valores de repercusión – the land cost built into the price of each new home) over 2026 and 2027. Some press reports have described this as a forecast for new-build prices; strictly, it refers to land. Because land is a large part of what a new home costs, it points to continued upward pressure on new-build prices – but not equally in every town or development. A fair reading is continued, selective growth, strongest in the best locations and best-designed projects, rather than a guarantee for every purchase.

How to buy well in a tight market

• Register early. The best units in a new phase often go before public launch. Being on the list for the towns and styles you want gives you first sight of plans and prices – our free Mosaic Select app can alert you when a new project, phase or price change matches your search.
• Decide between off-plan and key-ready. Buying at launch usually means more choice and staged payments; buying near completion means less waiting. Our guide to new build vs resale sets out the trade-offs.
• Check the protections. Off-plan deposits should be covered by a bank guarantee or insurance – see how your deposit is protected.
• Have your finances ready. When a good unit comes up, being able to reserve quickly – with your NIE, funds and any mortgage in principle in place – makes the difference.

Most of all, work with someone who knows the developers and hears about launches early. Speak to a Mosaic advisor about what is coming up in the areas you like, or download our free 2026 Buyers Guide to plan your purchase step by step.

Sources

• Savills, 21 July 2026 – Costa del Sol 2026–2027 (citing Obra Nueva Costa del Sol 2025/26)
• Euro Weekly News, 16 July 2026 – New Costa del Sol homes are selling before builders even break ground
• Qué!, 16 July 2026 – New-build prices on the Costa del Sol rise 23% (Savills data)
• El Conciso, 24 July 2026 – Savills forecasts rises of up to 16% for Costa del Sol new builds to 2027
• idealista/news, 22 October 2026 – Savills Visión Málaga: planning delays and the city’s 30,000 planned homes