MALAGA has recorded the sharpest decline in luxury property demand of any major Spanish market, as wealthy buyers increasingly turn their backs on the Costa del Sol in favour of the Basque Country.
New Idealista data for the first quarter of 2026 shows that enquiries for homes priced over €1 million plummeted by 19% in the province of Malaga.
The figures mark a dramatic reversal for the southern coast, which has dominated the expat property market for two decades.
In stark contrast, Bilbao emerged as the only major Spanish capital to record growth across every price bracket analysed in the report.
The northern city saw demand for luxury properties jump by 19%, tying with Palma as the fastest-growing high-end market in the country.
Analysts suggest a shift in buyer priorities is driving the change, with affluent investors increasingly looking to escape summer heatwaves in the south while seeking untapped value in northern regions.
The trend has been compounded by regional tax frameworks that are proving highly competitive for high-net-worth individuals.
But the Malaga slowdown is not restricted to the ultra-luxury tier.
The mid-to-high market, covering properties between €600,000 and €1 million, also saw interest tank by 18% in the area.
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Nationwide, the sector proved to be the worst-performing segment of the Spanish property market, with average demand dropping by 6%.
The data underscores a cooling off of the southern property gold rush, which had seen prices soar by 12.9% in the 2024-2026 period.
While the Costa del Sol remains a primary hub for northern European retirees, the new figures suggest that the market’s reliance on luxury foreign investment is facing its most significant test since the post-pandemic boom.
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