Peak prices, falling transactions, and record foreign buyers—all at the same time. The explanation does not lie in the broader property market. It lies in who is buying.

In our article Is the market reaching a turning point?, we previously explored how negotiating power is shifting towards the buyer. On this occasion, we examine that same shift from another perspective: not from the overall property market, but from the buyers themselves. Not all buyers are exposed to the same market, nor is the same market affected by all buyers in the same way. The cost of borrowing (mortgages) hits some far harder than others.

The Registrars’ breakdown

According to the College of Property Registrars, 167,934 property sales were completed in Spain during the second quarter of 2026—a 5.7% drop compared to the previous quarter. By contrast, the average closing price rose to €2,487 per square metre, reaching an all-time high. Meanwhile, foreign demand accounted for 15.98% of these transactions, representing another historical quarterly peak.

Three statistics that initially appear contradictory cease to be so once the market is divided into two distinct buyer profiles. On one side stands the mortgage-dependent buyer, who is increasingly sensitive to the cost of borrowing. On the other sits the buyer with equity, frequently from abroad, for whom borrowing costs carry far less weight. This is not a slowing market; it is a split market.

The Euribor rewrites the rules for mortgage buyers

When the ECB initiated its rate-cutting cycle, the industry consensus anticipated that the Euribor would continue to ease throughout 2026. This prediction proved only partially accurate. The index hit a multi-year low in July 2025 at 2.077%. It subsequently embarked on an upward trajectory, despite brief corrections in January, February, and June 2026. Furthermore, this rally accelerated from March onwards: within two months, the Euribor climbed from under 2.3% to over 2.7%.

The breakdown of recent months, based on definitive monthly figures published by Fotocasa Life using official Euribor daily rates, is as follows:

• July 2025 (series low): 2.077%
• December 2025: 2.267%
• January 2026: 2.245%
• February 2026: 2.221%
• March 2026: 2.565%
• April 2026: 2.747%
• May 2026: 2.804%
• June 2026: 2.798%
• July 2026 (latest closed monthly figure): 2.855%

Between July 2025 and July 2026, the Euribor climbed by 0.78 percentage points. This is neither a linear progression nor a guaranteed forward trend; it could shift once again should ECB expectations change. Nevertheless, the impact has already taken hold.

Eight months ago, in our article Are you still waiting for the perfect time to move?, we estimated a baseline range of 2.1%–2.6% for the Euribor. The July 2026 figure sits clearly above that projection. Forecasts inevitably change alongside the data, and this case is no exception.

Taking an increase of approximately 0.8 percentage points over twelve months as a benchmark, the monthly repayment on a representative €167,000 mortgage over 25 years (at Euribor +0.75%) would increase by roughly €69 per month, or around €828 per year. For loans with semi-annual revisions, the adjustment would work out at approximately €61 per month across the relevant six-month period.

Methodological note: this is an illustrative example rather than a universal calculation. Actual figures depend on the outstanding principal, remaining term, agreed margin, reset frequency, and the exact monthly Euribor figure applied by your lender.

This shift comes precisely as average mortgage debt per home reaches €176,453 (College of Property Registrars)—the highest level on record, following thirteen consecutive quarters of growth. Mortgage buyers are paying more for every euro borrowed, against property values that are themselves at record highs. Buyers are facing two headwinds simultaneously, rather than one.

Foreign buyers operate under different conditions

According to the College of Property Registrars, 15.98% of national home purchases in the second quarter were made by foreign nationals or non-residents.

Looking specifically at Malaga province, and more particularly its coastal strip, real estate portal Pisos.com reports that transactions involving foreign buyers or non-residents reached 34.30% so far in 2026. This ranks Malaga as the province with the second-highest proportion of international sales, behind Alicante (44.65%) and ahead of the Balearic Islands (28.89%). The same report notes that average property prices along the Malaga coast rose by 73.14% over five years, climbing from €280,497 to €485,645.

These two datasets offer different snapshots and must not be conflated as measuring the exact same metric. Together, however, they confirm a clear pattern: Malaga attracts international demand far above the national average, and a significant portion of these buyers rely on sources of capital separate from domestic mortgage products. For cash buyers, Euribor movements have a far smaller bearing. That said, generalization should be avoided: a number of overseas buyers also secure financing through Spanish lenders.

We previously highlighted this buyer profile—possessing greater scope to complete purchases without relying on mortgage financing—within the prime market in our article Prices keep rising. Sales are not. What the Malaga data now confirms is that this dynamic extends well beyond the luxury sector.

What this means for Benalmádena

Pricing a property in Benalmádena requires looking at localized market data rather than national headlines—a topic we explored in detail in In Benalmádena, the slowdown reaches the residential market too. Alongside pricing, a fundamental question must now be addressed: who is the intended audience? Increasingly, the target profile is a buyer unaffected by where the Euribor moves next month.

Three profiles, three strategies

• If you are selling: Price remains the key variable within your control, but the buyer profile capable of paying it is no longer uniform. Marketing tailored solely to mortgage buyers competes in a slower market than listing strategies designed to appeal to cash buyers as well.
• If you are buying with financing: Calculate your monthly payments using current Euribor rates rather than figures from a year ago before establishing your search budget. That variance is no longer a rounding error; it is a genuine ongoing cost. Remember also that the Euribor is only one part of the equation: lenders will assess your debt-to-income ratio, employment stability, and age-to-term parameters—criteria detailed in our piece 2026 Risk Assessment: Key criteria for mortgage approval.
• If you are investing: High prices, costlier credit, and international demand that accounts for over a third of Malaga’s coastal market indicate that a substantial pool of liquid capital remains ready to transact, even amid higher borrowing costs. This does not guarantee capital appreciation, but it does signal sustained market confidence.

Understanding the market in Benalmádena requires more than knowing property values. It demands insight into who can secure financing, who is prepared to buy, and where that demand originates. Applying that analysis to your specific home or property search is what ultimately delivers results.

If you require tailored advice on buying or selling, book an appointment at our Benalmádena office or schedule a video call.

Call us on +34 692 62 19 19 or email info@hernanbustos.com