Is Now a Good Time to Buy Property in Málaga? Market Trends Explained

By Vivi Real Estate | 7 de April de 2025 |

Málaga has long been one of Spain’s most attractive destinations for both tourists and property buyers. Located along the stunning Costa del Sol, it offers the perfect blend of Mediterranean charm, modern infrastructure, and strong economic growth. But if you're considering a property sale in Málaga, one big question likely comes to mind: Is now a good time to buy?

This guide breaks down the current market trends, economic indicators, and expert forecasts to help you make an informed decision. Whether you're a first-time buyer, an expat, or a seasoned investor, understanding Málaga’s real estate dynamics is key to making the right move.

A Look at the Current Málaga Property Market

Over the past few years, the Málaga property market has seen steady growth. Even after global events like the COVID-19 pandemic and rising inflation concerns across Europe, Málaga has remained resilient. According to data from Spain’s National Institute of Statistics (INE), property transactions in the province of Málaga rose significantly in 2023, reflecting continued buyer interest.

Key highlights of the current landscape:

• Strong demand from both international and domestic buyers
• Limited supply in high-demand areas like the city center, coastal districts, and surrounding suburbs
• Gradual price increases, though not yet at unsustainable levels
• Ongoing development of new residential projects, especially in areas like Teatinos, El Limonar, and along the coastline
  

In short, the market is healthy and active, making this a potentially favorable time for a property sale in Málaga.

How Prices Have Evolved

As of early 2025, property prices in Málaga have grown steadily but moderately, avoiding the sharp spikes seen in other European cities. Here's a breakdown of current average prices (though these vary by neighborhood):

• City center apartments: €3,000 – €4,500 per square meter
  
• Coastal properties (La Malagueta, Pedregalejo): €4,000 – €6,500/m²
• Suburban areas (Teatinos, Cerrado de Calderón): €2,500 – €3,500/m²
  

Although these prices are higher than in previous years, the increases have been driven more by demand and urban development than by speculative bubbles. This makes Málaga relatively stable compared to more volatile real estate markets.

Interest from Foreign Buyers

Foreign investment plays a major role in Málaga’s property market. British, German, French, Swedish, and Dutch buyers are especially active, many drawn by the city's lifestyle, climate, and investment potential. Málaga’s accessibility through its international airport and expanding high-speed rail connections also enhance its appeal.

For those looking to buy real estate Costa del Sol, Málaga is often the first stop. Its combination of modern amenities, seaside charm, and growing infrastructure makes it a safe and attractive investment option.

Rental Yield and Investment Potential

Beyond lifestyle, Málaga also offers compelling returns for investors. The city’s popularity as a holiday and long-term rental destination supports a healthy rental yield market.

Short-Term Rentals

With year-round tourism, short-term rental properties—particularly well-located apartments near the beach or city center—are in high demand. Platforms like Airbnb continue to thrive in the region, despite increasing local regulations.

Long-Term Rentals

Málaga is also a popular relocation destination for remote workers and expats, increasing demand for long-term rentals. Average rental yields in desirable areas can range from 4% to 6%, depending on location and property type.

This makes it an appealing option for property investment Costa del Sol seekers who want a balance of capital appreciation and passive income.

Economic Indicators Support Growth

Spain's economic recovery has been promising, and Málaga stands out as a regional leader. The city has positioned itself as a tech and innovation hub, attracting major companies and startups, including Google’s cybersecurity center.

Other positive indicators:

• Job creation in tech, tourism, and real estate sectors
• Public infrastructure investment, such as metro expansions and urban revitalization
• Sustainable tourism policies, which protect long-term property value
  

These economic developments add an extra layer of confidence for those entering the Málaga property market now.

What About Mortgage Rates?

One of the biggest concerns for buyers in 2024 and 2025 has been interest rates. After a period of rate hikes across the Eurozone, there are signs that inflation is slowing and that the European Central Bank may begin lowering rates within the next year.

Currently, fixed-rate Spanish mortgages hover around 3.5%–4.2%, depending on the lender and terms. While not at historic lows, these rates remain manageable, particularly for international buyers who may be purchasing with cash or with lower loan-to-value ratios.

If you’re considering financing your property sale in Málaga, now may be a smart time to lock in a rate before any further changes.

Is It the Right Time for You?

Timing the market is always a challenge, but several factors suggest now is a good window to act, especially for buyers planning for the medium to long term.

Ideal Time to Buy If You:

• Have financing or cash ready
• Want to secure a holiday or retirement home
• Are looking for long-term rental income
• Prefer buying before prices rise further
• Are investing for lifestyle and value, not speculation
  

On the other hand, if you’re hoping for steep discounts or short-term resale gains, Málaga may not be the market for that strategy right now. Instead, it favors buyers with a vision for the next 5–10 years.

Popular Areas for Property Buyers in Málaga

Here’s a snapshot of some in-demand neighborhoods and what they offer:

Area	Buyer Type	Property Type
Historic Centre	Investors, expats	Apartments, flats
La Malagueta	Beach lovers	Penthouses, luxury flats
El Limonar	Families	Villas, townhouses
Teatinos	Young professionals	New builds, apartments
Pedregalejo	Retirees	Traditional homes, villas

Each area supports different lifestyles and investment goals, so aligning your priorities with the right location is key.

Final Thoughts: What’s the Verdict?

The Málaga real estate market in 2025 presents a strong case for serious buyers. Whether you’re relocating, retiring, or investing, the market offers stability, growth potential, and long-term value.

While no investment is without risk, the current economic environment, buyer demand, and development trends suggest that now is a favorable time for a property sale in Málaga—especially for those ready to act.

Partner with Local Experts for a Smooth Buying Experience

If you're ready to take the next step, having a knowledgeable local guide makes all the difference. At Vivi Real Estate, we specialize in helping foreign buyers navigate the Málaga property market with confidence and ease.

From neighborhood guidance to legal support and property tours, we offer end-to-end services tailored to your needs. Whether you’re looking for a holiday apartment, a family villa, or an income-generating rental, we’ll help you make smart and informed decisions.

Explore available listings and get expert advice today at Vivi Real Estate. Let’s find your dream home on the Costa del Sol.