Knowing when is the best time to buy a house is not always easy, especially with the uncertainty of the real estate market on the Costa del Sol. The right time to invest or move varies depending on the economy, mortgages, supply and demand, and the property’s location. Identifying it is key, but how do you do it?
In this article, we’ll look at the contextual factors that influence housing prices. We’ll also explore how to analyze them to anticipate trends and secure the ideal price. Ready to plan your next investment?
A word of warning: analyzing the real estate market takes time. Don’t have that time? Having a local agency (like Cabanillas Real Estate) speeds up the process and gives you more confidence when choosing a property.
Factors that determine the best time to buy a house
What is the best time to buy a house? When demand drops? When mortgage rates remain stable? When inflation decreases? Let’s take a closer look.
There are several macroeconomic factors that, together, influence both the price of a property and the long-term return it can offer as an investment. These include:
- Economic context. In general, a country’s GDP growth encourages real estate investment, as people have higher incomes and can commit to paying a mortgage over the medium or long term.
- Mortgage interest rates. A rise in interest rates limits access to homeownership, prompting many to rent properties instead. Conversely, the drop in mortgage rates in Spain in the middle of the year made it a good time to buy.
- Inflation. As long as it occurs in a controlled environment, inflation can support real estate investment. However, it’s essential that household income grows at a faster rate than property prices.
- Supply and demand. The interplay between supply and demand—partly depending on the location—determines property prices and influences the decision to buy. On the Costa del Sol, for example, demand far exceeds supply, even though supply has increased throughout Spain. This makes property purchases in the area more attractive and, above all, exclusive.
That said, economic stability and purchasing power don’t always remain constant. The situation can shift in just a few months, as it did this year with the Euribor and mortgage prices. Getting advice from a local real estate agency can help you make strategic investments while minimizing risks—especially in complex areas like the Costa del Sol.
👉 Need advice? We’ll show you how to choose a real estate agency in Estepona.
The influence of the real estate market on the Costa del Sol and Estepona
Now then, the answer to when is the best time to buy a house changes when we look at the Costa del Sol compared to Spain as a whole. The market in this area has unique characteristics that make it more complex than in other parts of the country.
The Costa del Sol has spent years positioning itself as a paradise for real estate projects. Domestic and international tourism, quality of life, and the proximity between cities make the region an ideal place to build a future.
Currently, smaller cities in the area, such as Estepona and Benahavís, are experiencing steady growth that encourages real estate investment. In fact, during 2025, property prices rose by 3% to 5%.
Property demand is also increasing, both for tourist-use housing and permanent residences. Just the luxury housing segment between Marbella, Estepona, and Benahavís generated over 3.2 billion euros in 2024, a 20% increase compared to 2023.
This is partly because real estate agencies on the Costa del Sol work with international buyers, whose investments don’t always depend on the Spanish housing market. In fact, in just the first quarter of 2025, 33% of property transactions were carried out by non-residents.
Having the support of a local real estate agency, such as Cabanillas Real Estate, helps you find good investment opportunities, negotiate prices, and speed up the paperwork. For foreign buyers, it’s also key to managing the entire purchase process smoothly, without missing any important steps.
👉 Learn about the requirements to buy a house in Spain as a foreigner.
Indicators that show if it’s a good time to buy
To determine when the right time is to buy a home, it’s essential to analyze the indicators that reveal the state of the market—particularly price trends, mortgage rates, supply, and potential profitability.
How do you interpret them? In general, keep the following in mind:
- Compare property prices by quarter. Price stability or a slowdown in increases indicates that it’s a good time to buy.
- Evaluate supply and demand. The more supply available, the more room you’ll have to negotiate the final price. High demand usually signals an upcoming rise in value.
- Consider tax changes or incentives, such as the 2026–2030 State Housing Plan. These may affect property costs or offer better financing opportunities.
- Analyze mortgage trends. The lower the interest rate, the greater your purchasing power.
Let’s take a closer look at why these factors can make buying property more or less favorable.
Mortgage rates and financing conditions
Interest rates and credit granting policies determine a property’s mortgage. As such, they influence its total cost and determine how sustainable its financing will be in the medium and long term.
The requirements to obtain a loan and the interest rate applied depend on the macroeconomic context and the buyer’s financial situation. That’s why, before buying a home, it’s important to:
- Study the different financing options.
- Calculate the actual monthly payment.
- Make sure the mortgage fits your budget.
Having professional advice helps you avoid surprises and reduce risk. Local real estate agencies often find favorable financing options and advise you on the right time to buy a property.
👉 Have you finished paying off your loan? Thinking of selling your home? Find out how to cancel a mortgage in Spain in 2025.
Property prices and expected returns in Estepona
Tracking the variation in housing prices, quarter by quarter, can help determine when it’s the best time to buy a house. For example, if prices stabilize after a period of growth, it’s usually a good time to buy—they’re likely to rise again. The same applies when supply is limited.
The price trend per square meter in Estepona shows an upward trajectory. In the third quarter of 2025, property prices rose by 3.76%, going from €3,910/m² to €4,057/m²—well above the national average of 1.86%. In November 2025, prices continued rising and currently sit at around €4,091/m².
However, in Estepona this difference is balanced out. In tourist and growing areas, potential return is just as important as price. In addition to future appreciation, income from a vacation rental property often covers a significant part of the investment relatively quickly.
It’s important to remember that property purchases for investment purposes are subject to Law 38/1999 and the current tax regulations on real estate income and capital gains. This means you’ll need to declare rental income and the sale of the property may involve additional taxes. How do you maximize your return? By working with a real estate agency that specializes in this area.
👉 Want to know more? We explain in detail why investing in property on the Costa del Sol is a smart move.
Tips to make the most of market opportunities
Buying and selling property on the Costa del Sol is full of opportunities. Identifying the most profitable ones in time requires deep analysis, planning, and market knowledge. In other words: the guidance of a local real estate agency.
However, if you prefer to start on your own, here are some key aspects to consider when looking for real opportunities, depending on the type of investment you want to make:
- New developments. Try to invest during the early stages of construction, when prices are more competitive. Research the developer’s reputation, request technical information, and assess the area to make sure it has good appreciation potential.
- Resale homes. Second-hand properties usually offer better negotiation opportunities and a more stable market. We recommend valuing the property independently, comparing the price per m² with other homes in the area, and especially rounding up renovation costs.
- Developing areas. Investing in neighborhoods with municipal projects or that are being revitalized often brings good returns. Follow the latest urban developments and stay alert to new investments or upcoming green spaces.
Additionally, before buying a house, it’s important to request updated market reports and go on guided visits. If you’re unsure, don’t hesitate to seek expert advice on financing, profitability, and current regulations.
Not sure it’s the right time to buy property? Rent-to-own could be an ideal alternative. Learn everything about this financing method in our latest article.
The best time, the best investment
Knowing the best time to buy a house isn’t easy. Tracking prices, mortgage rates, supply, demand, and economic stability—and understanding how they affect the market—is no simple task. Especially in an area as complex as the Costa del Sol.
The truth is, there’s no single “perfect” moment to buy a home. Each investor has their own, depending on their situation and goals. Finding it can be challenging, but having expert guidance makes it much easier.
At Cabanillas Real Estate, we are a real estate agency in Estepona with over 60 years of experience on the Costa del Sol. We have deep knowledge of the real estate market and local regulations, as well as a team of professionals ready to help you make the best decision.
Contact us on WhatsApp and tell us how we can help you. Because perfect moments don’t just happen—they’re created. Start building yours today.
Si tienes consultas puedes contactar en sales@cabanillasrealestate.com
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