In early 2025, the real estate market in Malaga and its region is once again asserting itself as one of the most promising destinations for foreign investors in Spain. With sustained price growth, constantly increasing international demand, and attractive rental yields, this region of Andalusia offers a perfect balance between quality of life and investment opportunities. And not just for the jet set.
Discover Malaga and its region with the experts at Terreta Spain.
The Province of Malaga, a thriving Mediterranean setting
The natural advantages of the Costa del Sol
The province of Malaga is located in the heart of the Costa del Sol, one of the most desirable in the country, which has been attracting stars since the 1950s. The region extends over more than 160 kilometers of coastline bathed by the Mediterranean, alternating between isolated coves and long sandy beaches. The hinterland, with its typical white villages and mountainous landscapes, offers a striking contrast to the urbanized coastline. Bonus: it benefits from an exceptional Mediterranean climate with more than 320 days of sunshine per year.
This privileged natural setting is one of the main assets for foreign investors, especially those from Northern Europe, who are looking for both a holiday destination and a profitable investment.
Malaga capital, cultural metropolis and new Tech hub of southern Spain
Scoop: Malaga has transformed in recent years into a true cultural and technological metropolis.
The birthplace of Pablo Picasso is now home to more than 30 museums, including the prestigious Centre Pompidou Malaga and the Picasso Museum, which attract visitors from all over the world throughout the year. In parallel with this vibrant cultural life, Malaga has established itself as a major technology hub in Spain. It is even nicknamed the "Spanish Silicon Valley".
- The PTA (Andalusian Technology Park) on the outskirts of the city hosts more than 700 companies specializing in Tech, employs more than 27,000 people and creates a dynamic ecosystem, ideal for fostering innovation and skilled employment. It closed 2024 with a turnover of more than 4 million euros.
- The city is attracting more and more entrepreneurs and investments in the fintech, edtech and cybersecurity sectors.
- Malaga has been home to Google's Cybersecurity Center (GSEC) since 2023.
- The city is the birthplace of successful startups such as Freepik or VirusTotal acquired by Google.
- Overall, the Tech sector generates more than 300 million euros in turnover per year.
- In addition, more than 60 multinational corporations have established their headquarters in the region.
This economic growth has led to an increase in demand for housing from professionals looking to settle permanently in the city.
Málaga, in strong economic health
Málaga boasts a robust economic health, with a GDP growth of 2.8% in 2024 and a forecast of 3% for 2025 (EuropaPress), supported by a flourishing tourism sector, dynamic commercial activity, and significant public investments, particularly in healthcare and education.
International connectivity and infrastructure
For international investors, accessibility is crucial. Here, Málaga-Costa del Sol International Airport, the third largest in Spain (25 million passengers in 2024, +11.5%, the best figure in its history), is located less than 20 minutes by car from the city center and provides direct connections to over 120 destinations across Europe = excellent air connectivity, which is a major plus for foreign owners, entrepreneurs and, of course, tourists.
The internal transport network (metro, bus, AVE high-speed train) complements this accessibility. Málaga is now only 2h30 by train from Madrid, which reinforces its attractiveness for national and international investors.
Want to buy in Málaga? Contact our team of experts.
The real estate market in Málaga in 2025: analysis and key figures
Price evolution in the first quarter of 2025
The first quarter of 2025 confirms the upward trend observed in recent years. Málaga is both the most expensive province and city in Andalusia and one of the most sought-after in Spain.
- According to the latest data, the Province of Málaga shows prices of 3,615 euros/m² and an impressive annual growth of +15%, significantly higher than the Spanish national average of 11% (and 2,311 euros /m²).
- The city of Málaga itself shows a record average of 3,320 euros/m² and has seen its prices jump by +20.3%.
Legend: Price evolution in the city of Málaga
Source: Idealista
This valuation is explained by strong demand, both national and international, combined with a limited supply in the most sought-after areas.
To discover our properties for sale in Málaga, contact Clément directly on Whatsapp, at +34 604 992 197.
Legend: The 3 most and least expensive districts to buy in Málaga, 2025
Source: Idealista / Terreta Spain
| 🏡 Real estate market in Málaga | 🔑 Key points |
| 📍 Most expensive city in Andalusia | For buying and renting |
| 💰 Average purchase price | 3 320 €/m²➡️ Approximately 265 600 € for an 80 m² apartment |
| 📈 Average rental price | 15.2 €/m²➡️ Approximately €1,220 / month for 80 m² |
| 🔥 Supply vs. Demand | Very high demand, limited supply |
| 🌴 Buyer Profile | Popular destination for retirement and investment➡️ 32.35% of buyers are foreigners (Idealista) |
| 🏙️ Ranking in the region | 8 of the 10 most expensive cities in Andalusia are in the Province of Málaga (Fotocasa) |
Foreign Investor Profile
Since the end of the COVID parenthesis, foreign buyers have been flocking to Spain, attracted by affordable prices, attractive returns, and quality of life. In 2024, they acquired nearly 93,000 properties in Spain, representing 14.6% of the country's total real estate transactions, according to Idealista. Although the Valencian Community dominates this market with more than 30% of foreign purchases, the city of Málaga remains a destination of choice, particularly among the British, Germans, Scandinavians, and increasingly, investors from Eastern Europe and North America.
= Foreign buyers purchased more than 32% of the properties available (11,400) in the city of Málaga in 2024 (Idealista).
To learn all about the real estate boom in Valencia, check out our articles:
These foreign investors fall into several categories:
- Retirees looking for a primary or secondary residence to enjoy the climate and quality of life.
- Pure investors targeting rental profitability, particularly in the short-term rental segment.
- Teleworkers, a new segment experiencing strong growth since 2020. Free to live between two countries, they can carry out their professional activity from Spain while benefiting from the exceptional living environment.
Rental yields in Málaga
The crux of the matter, some would say. The national average for rental yields in Spain for 2024 is 6.7% (Fotocasa). In Andalusia, it is close to 6%.
Legend: Average yield by Autonomous Community in Spain
Source: Fotocasa
- In Málaga, rents have been soaring since the pandemic (+10% between March 2024 and March 2025).
- Seasonal rentals in the city can generate gross revenues of 6 to 10% annually.
- While long-term rentals offer, as always, a lower but more stable return in the range of 4 to 6%.
Legend: The evolution of rental prices in Málaga since 2008
Source: Idealista
Legend: The most expensive / least expensive neighborhoods for rent in Málaga, 2025
Source: Idealista / Terreta Spain
- Note that the Centro district (the city center) is divided into several zones. The most expensive area is the very center, the historical center of Málaga, which peaks at €5,421/m².
Entrust your investment project in Málaga to our team of experts: contact them.
Tourist rentals in Málaga: what you need to know
Please note that in Málaga, tourist rentals are now strictly regulated by local and national laws. These have been further reinforced in 2024-2025 in response to the surge in the number of tourist accommodations and the pressure on the residential market.
- Málaga is the province with the highest concentration of tourist accommodations: more than 41,000 declared rentals.
Since the end of 2024, the Ayuntamiento (city council) has prohibited any new short-term tourist rentals in 43 districts where more than 8% of homes are already rented to tourists, including the historic center and the most popular areas. In March 2025, a moratorium was announced: no new tourist rental licenses will be issued in the entire city for three years (Idealista). The idea is to stop the proliferation of this type of rental and allow for an accurate census of the existing stock.
At the same time, Andalusian and Spanish legislation now requires the mandatory registration of any property for tourist rental in a national digital registry, with a unique number to be displayed on all listings. Finally, only properties with a separate entrance can obtain a new license, and co-ownerships can restrict or prohibit the activity by a qualified vote (Euronews).
- These measures aim to protect permanent residents, regulate the tourist supply, and combat illegal rentals. In other words, if you are thinking of banking on tourism, be vigilant, do not go it alone, and avoid your project relying ONLY on the influx of travelers.
Málaga: new leader in luxury real estate in Spain
With 30% of the national supply of high-end properties, Málaga is establishing itself as the luxury capital of Spain.
- In Málaga, 1 in 10 properties exceeds 2.5 million euros, proving that the prime segment is growing (Idealista).
The city faces a new challenge: despite strong demand, the lack of new construction is hindering the market and fueling price increases.
Advice from Terreta Spain experts: where to buy in Málaga for optimal profitability?
The historic center: charm and profitability
Málaga's historic center, with its pedestrian streets, shaded squares, and centuries-old monuments, remains a very popular area for tourists and students (the University of Málaga is located a stone's throw from the port). Character apartments in renovated old buildings offer attractive rental yields in the student rental (shared accommodation) and tourist rental segments where possible.
- Please note that in the very center, as purchase prices are very high (5,421 €/m²), yields will not be exceptional, despite rising rents (16.5 €/m²). On average, we calculate 3-4% gross yields.
- On the other hand, the rental vacancy rate is very low and the long-term appreciation potential is enormous.
The advantage? Terreta Spain is also your construction partner in Spain. Discover here the interview with Gaetano Grana, our works director.
Legend: The historic center of Málaga
Source: Google
Emerging districts: Soho and Distrito Zeta
It cannot be said enough, investing in an emerging district is wise. This allows you to take advantage of affordable prices and great potential for appreciation in the medium and long term.
Legend: Districto Zeta and the Soho district, two emerging areas ideal for investment
Source: Google
- The Soho district, in the immediate vicinity of the center and formerly neglected, has been transformed into an artistic and cultural hub, attracting a young and creative population. The still relatively affordable prices (4,816 €/m²), rents almost aligned with those of the historic center (16.3 €/m²) and the potential for appreciation make it a particularly attractive investment area for savvy investors. You can count on 4-5% profitability in this central area.
- Distrito Zeta, located in the Cruz de Humilladero district, to the west of the city, represents the future of Málaga, with many new real estate projects that benefit from modern infrastructure and excellent connectivity, while offering prices that are still attractive compared to those of the city center: 2,860 €/m² and rising rents that already reach 14.5 €/m² (+12.5% in one year). This translates to average gross yields of around 6%.
Legend: Price evolution in the Cruz del Humillero district since 2008
Source: Idealista
Ready to invest in Málaga? Make an appointment with us directly to build your investment project on the Costa del Sol together.
Practical aspects of investing in Málaga
Legal framework for foreign buyers
Spain has a legal framework that favors foreign investors, who can purchase real estate under the same conditions as Spanish residents. To finalize a transaction, obtaining a NIE (Número de Identificación de Extranjero) is necessary. The experts at Terreta Spain have summarized the steps to follow to invest in Spain. (Link to steps)
Taxation and rental yields
- Rental income is taxed at 24% of the net income for non-residents and 19% for European residents (IRNR, link to file). Deductible expenses include loan interest, community fees, local taxes, and property depreciation.
- Good tax news: the real estate wealth tax (Impuesto sobre el Patrimonio) has been abolished in Andalusia.
Terreta Spain's turnkey service
At Terreta Spain, we support our international clients at every stage of their investment project in Málaga:
- Personalized search according to your investment criteria and profitability objectives
- Negotiation and legal securing of the transaction
- Coordination of renovation work with qualified local artisans
- Works and improvements to maximize rental attractiveness
- Complete rental management
Conclusion: Málaga, an investment for the future
Between its exceptional climate, its booming technological ecosystem, its highly qualitative living environment and advantageous tax measures, Málaga ticks all the boxes for a smart and sustainable investment.
Are you considering investing in Málaga? Make an appointment with us directly to build your investment project on the Costa del Sol together.
Sources: INE, Idealista, Fotocasa, Europa Press , El Referente, Somos Districto Zeta
FAQ – Investing in Málaga in 2025
Why invest in Malaga in 2025?
Málaga offers an excellent balance between quality of life and rental profitability. In 2025, the city shows a price increase of +20.3%, a gross rental yield that can reach 10% in seasonal rentals, and a strong demand driven by tourists, retirees, and teleworkers.
What is the average property price in Málaga?
In the first quarter of 2025, the average purchase price in Málaga is 3,320 €/m², or approximately 265,600 € for an 80 m² apartment. It is the most expensive city in Andalusia.
What are the best areas to invest in Málaga?
- Historical center: strong rental potential (6-8% gross), charm and tourist proximity.
- Soho: a booming artistic district, very popular with young professionals.
- Distrito Zeta: area of the future with new projects at still affordable prices.
Is it still possible to do tourist rentals in Málaga?
Tourist rentals are highly regulated. Since 2025, a moratorium prohibits any new licenses in the city for three years. Only properties already authorized or with an independent entrance can be rented for short periods. Check the regulations before any purchase and do not proceed alone.
Can foreigners buy property in Málaga?
Yes. Non-residents can buy in Spain without restriction, provided they obtain a NIE (Foreigner Identification Number). Terreta Spain supports foreign buyers throughout the purchasing process.
What is the average rental yield in Málaga?
According to Fotocasa, the average rental yield in Andalusia is around 6%, and can climb to 10% in seasonal rentals in the tourist areas of Málaga. Long-term rentals offer a stable yield of around 4 to 6%.
