In recent years, the property market on the Costa del Sol has seen continuous growth, fuelled by strong international demand and the exceptional quality of life Andalusia offers. However, this boom has also brought a growing challenge: a lack of affordable housing for local residents, especially younger generations.
In response, the Andalusian government has just introduced a new Housing Law, approved by the regional cabinet in early September 2025. This legislation takes a firm step towards a long-term solution. Importantly, the law not only aims to protect local citizens — it also offers a balanced framework that benefits those wishing to buy or invest from abroad.
📈 Why was this law necessary?
According to FADECO, Andalusia faces a housing deficit of around 200,000 homes, and construction has not kept up with demand in the past decade. This shortage has contributed to steadily rising prices, making home ownership increasingly difficult for many locals.
In other Spanish regions — notably the Balearic Islands — these issues have sparked social tension and even protests against foreign buyers.
Andalusia, however, has chosen a different path: to increase supply rather than restrict demand.
As President Juanma Moreno stated, “interventionism has not worked,” and Andalusia is developing its own “Andalusian approach” based on dialogue and public-private cooperation.
🏗️ What measures does the new law introduce?
Expected to pass before the next regional elections, the new law includes a wide range of practical initiatives with a direct impact on the market:
🔹 More land made available for protected and affordable housing.
🔹 Change of land use permitted (e.g. from office to residential) to increase housing stock.
🔹 Public land bank with already urbanised plots ready for immediate development.
🔹 Local housing plans strengthened, requiring municipalities to allocate at least 25% of public land for protected housing.
🔹 Urban regeneration and rehabilitation encouraged, especially in older neighbourhoods.
🔹 Less red tape, and stronger collaboration between the public and private sectors.
These measures aim to boost supply without blocking private investment — and to ensure that foreign buyers are not treated as part of the problem, but as part of the solution. It’s a smart strategy that acknowledges the global nature of today’s property markets.
🌍 Why does this benefit international buyers?
As a property and urban planning expert with more than 30 years of experience in the Costa del Sol, I see this law as a clear sign of market maturity and long-term stability in Andalusia.
International buyers can benefit in several ways:
✅ A healthier, more balanced market with less risk of speculative bubbles.
✅ More new-build homes and better overall supply, keeping prices from overheating.
✅ A clearer and more unified legal framework across the region.
✅ A calmer social climate — avoiding the backlash seen in other tourist hotspots.
In short, Andalusia is choosing integration over restriction, creating a market that welcomes new residents while protecting existing communities. And that inspires confidence.
🤝 A step forward for everyone
This law may not solve every problem overnight — but it’s a bold move towards a more sustainable, inclusive, and investor-friendly property market.
As an advisor, I remain committed to guiding my clients — both local and international — with clarity, transparency, and deep knowledge of the territory.
If you’re thinking about buying in Andalusia, now is the time to explore your options with full peace of mind.
Would you like to understand how this new law could affect your purchase or investment?
I’m here to help — wherever you are in the world 🌍
📲 WhatsApp me at (+34) 607 579 422
