If you are renting in Málaga or anywhere on the Costa del Sol, you have probably felt the squeeze. Rents have been climbing for years, quality rental stock has all but disappeared, and the end of a lease now comes with genuine anxiety. But here is what many people have not yet calculated: in 2026, buying a home may actually cost you less per month than renting one.
What Renting Looks Like Right Now
Málaga province now has some of the highest rental prices in Spain. The average asking rent sits at around €16–€17 per square metre per month. For a 70 m² apartment — a modest two-bedroom — that is roughly €1,120–€1,190 per month. And that assumes you can even find one. Rental supply across the Costa del Sol has collapsed, with one major portal reporting a 56% decline in available long-term rentals since the pandemic.
Competition for decent rental properties is fierce. Prospective tenants are frequently outbid by multiple applicants, required to show extensive financial proof, and offered shorter or less secure contracts than before. For many residents, especially families, the instability alone is becoming untenable.
What Buying Looks Like Right Now
Here is where the numbers become interesting. The Euribor rate — the benchmark for Spanish mortgages — is currently around 2.2% and is expected to fall further during 2026. Variable-rate mortgages are available at around 3%–4% for qualified buyers. Fixed rates are slightly higher but offer security against future movements.
Let us run a real example. Suppose you are looking at a 70 m² apartment in Mijas or Estepona priced at €220,000.
- You have a 20% deposit: €44,000
- You borrow €176,000 over 25 years at 3.5%
- Monthly mortgage repayment: approximately €880
- Community fees and running costs: approximately €150–€200/month
- Total monthly ownership cost: roughly €1,030–€1,080
Compare that to renting a similar apartment in the same area: €1,100–€1,300 per month, with no security and no equity being built.
The Equity Argument
Every mortgage payment you make builds ownership in an asset that has appreciated by double digits in recent years. Every rent payment builds equity for your landlord. That gap — between paying rent and paying a mortgage — is not just a monthly number. Over ten years, it represents an enormous difference in your financial position.
Property prices in Málaga province rose approximately 11% year-on-year in early 2026. Even at the more modest 5%–7% growth forecast for the rest of the year, a €220,000 apartment could be worth €233,000–€235,000 by year end. That is a return on your deposit that no savings account is matching.
The Catch — What You Need to Buy
Buying is not the right move for everyone. To make the numbers work, you typically need:
- A deposit of at least 20% (non-residents are generally required to put down 30%)
- Proof of stable income to satisfy mortgage requirements
- An additional 10%–13% of the purchase price for taxes and buying costs
- A NIE number and Spanish bank account
If you have savings but have been putting off the purchase decision, 2026 is a year to run the numbers properly. The gap between renting and owning on the Costa del Sol has rarely been this narrow.
The Verdict
For residents who have the deposit and a stable income, the case for buying in Málaga and the Costa del Sol in 2026 is compelling. The rental market offers insecurity and rising costs. The ownership market offers lower or comparable monthly outgoings, asset appreciation, and stability.
If you would like us to run a personalised comparison based on your situation — your budget, preferred area, and available deposit — get in touch. It is a conversation worth having.