At the start of 2025, the real estate market in Málaga and the surrounding region is once again proving to be one of the most promising destinations for foreign investors in Spain. With sustained price growth, ever-increasing international demand and attractive rental yields, this region of Andalusia offers the perfect balance between quality of life and investment opportunities. And not just for the jet-set.
Discover Málaga and the surrounding area with the experts from Terreta Spain.
The Province of Málaga, a booming Mediterranean setting
The Costa del Sol's natural assets
The province of Málaga lies at the heart of the Costa del Sol, one of the country's most desirable resorts and a magnet for stars since the 1950s. The region stretches over 160 kilometers of Mediterranean coastline, alternating between secluded 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 enjoys an exceptional Mediterranean climate, with over 320 days of sunshine a year.
This privileged natural setting is one of the main attractions for foreign investors, particularly those from Northern Europe, looking for both a holiday destination and a profitable investment.
Málaga capital, cultural metropolis and new tech hub of southern Spain
Scoop: Málaga has transformed itself in recent years into a veritable cultural and technological metropolis.
Pablo Picasso's birthplace is now home to over 30 museums, including the prestigious Centre Pompidou Málaga and the Picasso Museum, which attract visitors from all over the world all year round. Alongside this vibrant cultural life, Málaga has established itself as a major technology hub in Spain. It has even been dubbed "Spain's Silicon Valley".
- The PTA (Andalusia Technology Park) on the outskirts of the city is home to over 700 companies specializing in Tech, employs over 27,000 people and creates a dynamic ecosystem, ideal for fostering innovation and skilled employment. It closed 2024 with sales of over 4 million euros.
- The city is increasingly attracting entrepreneurs and investment in the fintech, edtech and cybersecurity sectors.
- Since 2023, Málaga has been home to the Google Cybersecurity Center(GSEC).
- The city is home to successful start-ups such as Freepik and VirusTotal, which was acquired by Google.
- Overall, the Tech sector generates more than 300 million euros in annual sales.
- In addition, more than 60 multinationals have established their headquarters in the region.
This economic growth has led to an increase in demand for housing from professionals looking to settle in the city on a long-term basis.
Málaga, in full economic health
Málaga is in robust economic health, with GDP growth of 2.8% in 2024 and a forecast of 3% for 2025 (EuropaPress), underpinned by a flourishing tourism sector, dynamic commercial activity and substantial public investment, particularly in health and education.
International connectivity and infrastructure
For international investors, accessibility is decisive. Here, Málaga-Costa del Sol International Airport, Spain's third largest (25 million travelers in 2024, +11.5%, the best figure in its history), is less than 20 minutes' drive from the city center and provides direct connections to over 120 destinations across Europe = excellent air connectivity that's a big plus for foreign owners, entrepreneurs and, of course, tourists.
The internal transport network (metro, bus, AVE) completes this accessibility. Málaga is now just 2.5 hours by train from Madrid, making it even more attractive to national and international investors.
Looking to buy in Málaga? Contact our team of experts.
Málaga's real estate market in 2025: analysis and key figures
Price trends 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 boasts prices of 3,615 euros/m² and an impressive annual growth rate of +15%, well above the Spanish national average of 11% (and 2,311 euros/m²).
- The city of Málaga, on the other hand, posted a record average of 3,320 euros/m² and saw its prices jump by +20.3%.
Caption: Price trends in Málaga
Source : Idealista
This increase in value is due to strong national and international demand, combined with 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.
Caption: Málaga's 3 most and least expensive neighborhoods to buy, 2025
Source: Idealista / Terreta Spain
| 🏡 Málaga real estate market | 🔑 Key points |
| 📍 Most expensive city in Andalusia | For purchase and rental |
| 💰 Average purchase price | 3,320 €/m²➡️ Approximately €265,600 for an 80 m² apartment |
| 📈 Average rental price | 15.2 €/m²➡️ Approx. €1,220 / month for 80 m² of floor space |
| 🔥 Demand vs. supply | Very high demand, limited supply |
| 🌴 Profile of buyers | Popular destination for retirement and investissement➡️ 32.35% of buyers are foreign (Idealista) |
| 🏙️ Region rank | 8 of the 10 most expensive cities in Andalusia are in the Province of Málaga (Fotocasa) |
Profile of foreign investors
Since the end of the Covid parenthesis, foreign buyers have been flocking to Spain, seduced by its affordable prices, tempting returns and attractive living environment. In 2024, they purchased almost 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 for Britons, Germans, Scandinavians and, increasingly, investors from Eastern Europe and North America.
= Foreign buyers purchased more than 32% of available properties (11,400) in the city of Málaga in 2024 (Idealista).
To find out all about the boom in the Valence real estate market, read 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 aiming for rental profitability, particularly in the short-term rental segment.
- Teleworkers, a new segment that has been growing rapidly since 2020. Free to straddle two countries, they can carry out their professional activities from Spain while benefiting from an exceptional living environment.
Rental yields in Málaga
The sinews of war, some would say. The national average for rental profitability in Spain in 2024 is 6.7% (Fotocasa). In Andalusia, it's close to 6%.
Legend: Average profitability by Autonomous Community in Spain
Source : Fotocasa
- In Málaga, rents have soared since the pandemic (+10% between March 2024 and March 2025).
- Seasonal rentals in the city can generate gross revenues of 6 to 10% annually.
- Long-term rentals, as always, offer a lower but more stable return of between 4% and 6%.
Legend: Rental price trends in Málaga since 2008
Source : Idealista
Legend: Málaga's most expensive/least expensive neighborhoods to rent, 2025
Source: Idealista / Terreta Spain
- It's worth noting that the Centro (downtown) district is divided into several zones. The most expensive zone is the hypercenter, Málaga's historic center, which peaks at €5,421/m².
Entrust your investment project in Málaga to our team of experts: contact them.
What you need to know about renting in Málaga
Please note that tourist rentals in Málaga are now strictly regulated by local and national laws. These have been further tightened in 2024-2025, in response to the surge in tourist accommodation and pressure on the residential market.
- Málaga is the province with the highest concentration of tourist accommodations, with over 41,000 registered rentals.
Since the end of 2024, the Ayuntamiento (City Hall) has banned all new short-term tourist rentals in 43 districts where more than 8% of accommodation is already rented out 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 halt the proliferation of this type of rental and enable a precise census of the existing stock.
At the same time, Andalusian and Spanish legislation now requires all tourist rental properties to be registered in a national digital register, with a unique number to be displayed on all advertisements. Finally, only properties with an independent entrance can obtain a new license, and condominiums can restrict or prohibit activity by qualified vote (Euronews).
- These measures are designed to protect permanent residents, regulate tourism supply and combat illegal rentals. In other words, if you're thinking of investing in tourism, be careful not to go it alone, and make sure your project doesn't rely ONLY on the influx of travelers.
Málaga: Spain's new leader in luxury real estate
With 30% of the country's high-end properties, Málaga is Spain's luxury capital.
- In Málaga, 1 property in 10 exceeds 2.5 million euros, proof that the prime segment is gaining momentum (Idealista).
The city faces a new challenge: despite strong demand,the lack of new construction is holding back the market and driving up prices.
Terreta Spain's expert advice: where to buy in Málaga for maximum profitability?
The historic center: charm and profitability
Málaga's historic center, with its pedestrian streets, shady squares and centuries-old monuments, remains a popular area for tourists and students (the University of Málaga is just a stone's throw from the port). Character apartments in renovated old buildings offer attractive rental yields in the student (shared) and tourist rental segments, where possible.
- Beware, as purchase prices in the hypercentre are very high (€5,421/m²), returns will not be very high, despite rising rents (€16.5/m²). On average, we calculate gross yields of 3-4%.
- On the other hand, the rental vacancy rate is very low and the potential for long-term value enhancement is enormous.
The advantage? Terreta Spain is also your construction partner in Spain. Click here to read theinterview with Gaetano Grana, our construction manager.
Caption: Málaga's historic center
Source : Google
Emerging districts: Soho and Distrito Zeta
We can't say it often enough: investing in an emerging district makes good sense. It allows you to take advantage of affordable prices and great potential for value enhancement over the medium and long term.
Caption: Districto Zeta and Soho, two emerging areas ideal for investment
Source : Google
- The once neglected Soho district, in the immediate vicinity of the center, has been transformed into an artistic and cultural breeding ground, attracting a young and creative population. Prices are still relatively affordable (€4,816/m²), rents are virtually in line with those in the historic center (€16.3/m²) and the potential for value enhancement make this a particularly attractive investment zone for discerning investors. You can expect a 4-5% return in this central area.
- The Distrito Zetalocated in the Cruz de Humilladero district to the west of the city, represents the future of Málaga, with numerous new real estate projects benefiting from modern infrastructure and excellent connectivity, while offering prices that are still attractive compared to those in the city center: €2,860/m² and rising rents that have already reached €14.5/m² (+12.5% in one year). In other words, average gross returns of around 6%.
Legend: Price trends in the Cruz del Humillero district since 2008
Source : Idealista
Ready to invest in Málaga? Make an appointment with us to discuss your investment project on the Costa del Sol.
Practical aspects of investing in Málaga
Legal framework for foreign buyers
Spain has a favorable legal framework for foreign investors. They can buy property under the same conditions as Spanish residents. To finalize a transaction, it is necessary to obtain an NIE (Número de Identificación de Extranjero). The experts at Terreta Spain have summarized the steps you need to follow to invest in Spain (Link to steps).
Taxation and rental yields
- Taxation of rental income for non-residents is 24% of net income, and 19% for European residents (IRNR, see link). Deductible expenses include loan interest, community fees, local taxes and property depreciation.
- Good tax news: the Impuesto sobre el Patrimonio (real estate wealth tax) has been abolished in Andalusia.
Turnkey service from Terreta Spain
At Terreta Spain, we support our international customers at every stage of their investment project in Málaga:
- Personalized search according to your investment criteria and profitability objectives
- Negotiating and securing the legal aspects of the transaction
- Coordination of renovation work with qualified local craftsmen
- Work and refurbishment to maximize rental appeal
- Complete rental management
Conclusion: Málaga, an investment in the future
With its exceptional climate, booming technology ecosystem, high-quality living environment and attractive tax incentives, Málaga ticks all the boxes for a smart, sustainable investment.
Thinking of investing in Málaga? Make an appointment with us to discuss your investment project on the Costa del Sol.
Sources: INE, Idealista, Fotocasa, Europa Press , El Referente, Somos Districto Zeta
FAQ - Investing in Málaga in 2025
Why invest in Málaga in 2025?
Málaga offers an excellent balance between quality of life and rental profitability. By 2025, the city will have seen price rises of +20.3%, gross rental yields of up to 10% on a seasonal basis, and strong demand from 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 around €265, 600 for an 80 m² apartment. This makes it the most expensive city in Andalusia.
What are the best areas to invest in Málaga?
- Historic town center: strong rental potential (6-8% gross), charm and proximity to tourists.
- Soho: an artistic up-and-coming district, popular with young professionals.
- Distrito Zeta: an up-and-coming area with new projects at prices that are still affordable.
Is it still possible to rent in Málaga?
Tourist rentals are highly regulated. Since 2025, a moratorium has prohibited new licenses in the city for three years. Only properties already licensed or with a separate entrance can be rented on a short-term basis. Check the regulations before you buy, and don't go it alone.
Can foreigners buy property in Málaga?
Yes, non-residents can buy in Spain without restriction, as long as they obtain a NIE (Foreign Identification Number). Terreta Spain assists foreign buyers throughout the purchasing process.
What is the average rental yield in Málaga?
According to Fotocasa, the average rental return in Andalusia is around 6%, and can rise to 10% for seasonal rentals in Málaga's tourist districts. Long-term rentals offer a stable return of around 4-6%.
