SPAIN’S coastal property market has undergone one of its sharpest transformations in decades, with new data showing that affordable homes have almost vanished from the listings in Malaga and Valencia while luxury properties now dominate the market.
Figures from Idealista reveal that homes priced under €200,000 – once the backbone of the resale market in both cities – have collapsed to historic lows.
In Malaga, they have plunged from 45.3% of all listings in 2020 to just 11.5% this year, while in Valencia, they are down 22% from 59.4% over the same period.
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The shift is so severe that both cities now resemble high-end markets such as Palma and San Sebastian, where cheaper homes have practically disappeared.
The trend is being driven by a mix of chronic undersupply, strong domestic demand and a powerful influx of foreign buyers, who continue to target Spain’s coastal capitals as safe-haven destinations for both relocation and investment.
British, Dutch, German and Scandinavian buyers remain among the strongest groups on the Costa del Sol and in the wider Valencia region, while French and Italian demand has surged sharply since the pandemic.
As the cheapest homes “fly off the market” almost instantly, listings are increasingly dominated by properties at the upper end of the scale.
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In Malaga, homes above €500,000 have doubled their share of the market in five years, rising from 16.9% to 33.8% — now the largest price bracket in the city.
Valencia shows a similar trajectory, with luxury homes now accounting for 22.3% of all listings, overtaking most mid-range segments.
The shift is national, but the coastal capitals stand out for the speed and intensity of the change.
Across Spain, homes under €200,000 accounted for 60% of listings in 2020; today they represent 37.6%.
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Meanwhile, the share of homes over €500,000 has more than doubled to 23.5%, making them the second-most common price segment in the country.
In cities like Malaga and Valencia, the reconfiguration of the market is reshaping who can realistically buy.
Locals on average wages are increasingly locked out of entry-level housing, with the traditional “first home” bracket shrinking each year.
Expats with foreign incomes or equity from higher-value markets often find themselves in a far stronger position, fuelling competition and pushing prices further toward the upper tiers.
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Experts say the disappearance of affordable homes is partly explained by supply dynamics: cheaper properties sell in days or weeks, while expensive ones remain on the market far longer, making them more visible in the active stock.
But the underlying problem — a lack of new homes and insufficient resale supply — is structural and unlikely to ease soon.
Idealista’s data shows the trend is widespread.
San Sebastián now has just 1.7% of listings under €200,000. Palma has 4.4%.
Madrid has seen the share of affordable homes fall from 31% to 12.1%, while properties above €500,000 now account for 50.5% of its entire resale market.
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For Malaga, the change marks a decisive shift into the ranks of Spain’s most expensive cities.
Luxury homes now make up a third of all listings — double their share five years ago — and mid-range prices between €300,000 and €500,000 have surged too.
Valencia, once considered a cheaper alternative to Barcelona, is following quickly behind.
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Its share of high-end homes has risen sharply, and the supply of affordable properties has halved.
The transformation poses a growing challenge for young buyers, local families and anyone looking for a foothold on the property ladder.
As demand continues to outstrip supply, analysts expect the pressure on affordable housing to remain intense, with the mid-range and luxury brackets — now dominant across much of Spain — setting the pace for the market in 2026.
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