A few more cutscenes later after the Cargo Ship arrives and you will find yourself in Costa del Sol.
The teammates that you don’t have in your party will scatter all over town…
- Tifa and Aeris can be found on the beach suntanning
- Barret can be found in the Costa del Sol Inn modeling his sailors uniform
- Red XIII will be in the center of town
- Yuffie will be standing where the Materia Store owner would normally stand (if you have her)
Go through the first door after you cross the bridge to enter the “House for Sale” (as it is called in the menu screen). Speak to the man on the bed a few times and he will offer to sell the house, known as Shinra Villa, to you for 300,000 gil.
Go down into the basement and grab the 
Fire Ring inside the treasure chest as well as the 
Motor Drive and 
Power Source lying on the ground.
Enter the Bar in the center of town and speak to the man in the bottom-left corner of the room. You can purchase armor from him including 
Platinum Bangles, Carbon Bangles and Four Slots. Platinum Bangles are a fairly good choice as they offer double Materia growth.
The man set up next to the van (or Yuffie if you obtained her but did not add her to your party) will sell you Materia including:
Heal Materia
Revive Materia
Restore Materia
Seal Materia
Fire Materia
Ice Materia
Lightning Materia.
Take a pit stop in the Inn and speak to the Inn owner to stay the night for 200 gil to refill your party’s HP and MP. Travel down to the beach on the far right side of Costa del Sol to find Dr. Hojo chilling on a beach chair. You can exit Costa del Sol when you are done by crossing under the bridge that you came over when you entered.
Costa del Sol is located in the Corel Area (as identified in the menu screen). The next stop is Mount Corel.
