Southern Spain, and particularly the Costa del Sol, has experienced significant growth in Gulf investment over the last few years. This trend has been driven by younger international buyers who want to own property in Europe as well as the UAE, Saudi Arabia and Qatar.
The US-Iranian conflict, which erupted back in February 2026, has had even more of an impact on the Costa del Sol property market. So, what’s shifted over the last few months for GCC buyers, and can these investors from the Middle East apply for a Spanish mortgage? Let’s take a look.
What has the Iran conflict changed?
The conflict in the Middle East has triggered a shift in real estate interest from GCC countries to Marbella.
According to leading luxury real estate agency HPDunne & Hamptons International, Dubai saw a record $250 billion in property transactions in 2025. But transaction volumes dropped by approximately 25% in two weeks following the start of the conflict in Iran.
Shares in major UAE developers, including Emaar Properties and Aldar Properties, also fell sharply after Iranian missile strikes hit Dubai.
But why is this? Well, uncertainty and volatility in the region have forced investors to rethink their long-term plans. Good investors want to prioritise stability and security, as secure places are where buyers are looking, and are where new developments can be built. Warzones and politically volatile regions don’t attract buyers as the potential for profit is more or less nonexistent.
Lifestyle changes are also influencing interest from GCC countries, including Dubai, as the instability is off-putting, and homeowners here have switched from holiday home interest to permanent home seeking.
Pre-conflict buyer trends
Interestingly, even before the conflict began, there was already growing investment in the Costa del Sol from the Middle East.
In December 2024, Modon Holding, an Abu Dhabi-based holding company, completed the acquisition of La Zagaleta – one of Marbella’s most luxurious and coveted residential estates. It has over 400 luxury villas, with prices often exceeding €20 million, highlighting the buyer appeal of this coastal retreat.
Kuwait even hosted a dedicated Marbella Real Estate Expo that over 75 property developers attended. This event brought Costa del Sol property investment opportunities directly to high-net-worth local buyers.
What’s more, Qatar Airways had already switched its Doha-Malaga route to a year-round service. This was a significant commercial decision that signals strong confidence and interest in the Costa del Sol real estate market.
Why the Costa del Sol specifically?
- Strong gross rental yields – In prime spots like Marbella and Estepona, yields sit between 5-7% annually.
- Rising prime property prices – By Q4 2025, prime property prices on the Costa del Sol had risen 13.1% year-on-year.
- Existing familiarity with the Costa del Sol – Many Dubai clients already own holiday homes in Marbella, as it’s a luxurious retreat to escape the summer heat.
- Quality infrastructure – Marbella and Malaga are highly accessible thanks to nearby Malaga Airport, and there are already numerous top international schools in Andalusia.
- Safe haven for expats – Those who moved from the UK to Dubai for tax reasons are rethinking their residency and may be looking at the attractive Costa del Sol as their next home.
Can GCC nationals get a mortgage in Spain?
Yes. Spanish banks can provide non-resident mortgages to non-EU buyers, which includes investors from the Gulf countries, such as the UAE, Qatar and Kuwait. This works the same for buyers from the UK, the US and Australia, among others.
The standard non-resident mortgage maximum is 70% loan-to-value (LTV), though many lenders are more comfortable at 60%.
Working with a specialist mortgage broker
If you’re a GCC property investor and are interested in the Costa del Sol, Fluent Finance Abroad can provide specialist advice and liaise with mortgage lenders on your behalf.
We’ve been arranging Spanish mortgages for non-residents since 2006, and have an experienced team of qualified financial advisors to help you with the application.
Give us a call on +34 952 85 36 47 or email us at info@fluentfinanceabroad.com and we’ll respond as soon as possible.
