Spain's new home prices surge in Costa del Sol and Murcia

New‑build property values on the Costa del Sol reached a median price of €1 million in 2025, a 23 % rise from the previous year. The Savills report attributes the jump to a sharp supply‑demand imbalance, scarce buildable land, higher construction costs and strong interest from foreign buyers, especially from the UK, the Netherlands, Sweden and Germany. During the year 12,265 new homes were sold while only about 5,300 units remained on the market. Estepona leads new‑build supply and Marbella dominates the luxury segment, where prices exceed €8 000 per square metre and average around €2.5 million per unit. Savills forecasts further price growth of 13‑16 % through 2026‑27 with land values rising 6‑7 %.

In the Region of Murcia, new‑home prices grew 6.6 % year‑on‑year in the first half of 2026, still below the national average of 9.7 %. The average price in Murcia city is €1 653 per square metre, with the highest prices in Cartagena at €1 748 per square metre. The housing‑affordability index shows buyers need 5.3 years of full salary to save for a median home, well under the national 7.8‑year benchmark. While the accessibility score remains above the recommended threshold, the effort required rose 4.1 % and the accessibility index fell 4.6 % in the same period, prompting calls for more land and faster planning approvals.