Introduction: Málaga's Property Boom
Málaga province has transformed into one of Spain's most sought-after destinations for foreigners looking to relocate or invest in real estate. This popularity has fueled a dramatic surge in property prices, making it the most expensive city in Andalusia and one of the priciest in all of Spain. With annual increases exceeding 14% in 2023 and hitting over 20% at times in 2024, understanding this market is crucial for any international buyer.
Impact on Foreign Buyers and Residents
The influx of foreign investment has significantly shaped Málaga's property landscape. According to data from the Spanish Land Registry, Málaga and Alicante together account for nearly 40% of all property purchases by foreigners in Spain. This high demand from non-resident buyers, particularly those seeking holiday homes, has driven prices upward, creating challenges for local families who are increasingly priced out of the market.
Key impacts include:
- Rising Costs: The average price per square metre in Málaga city has more than doubled, exceeding €4,000 in 2025, with coastal and central areas seeing the steepest hikes.
- Economic Disparity: Wages in Málaga remain lower than in major cities like Madrid or Barcelona, making affordability a concern even for higher-earning locals.
- Tourism Influence: Málaga and the Costa del Sol's status as top international destinations continues to attract foreign capital, sustaining price growth.
Key Details: Market Trends and Factors
Current Price Landscape
As of late 2025, Málaga's property market shows no signs of cooling. Idealista, Spain's leading property portal, reported a record average price of €4,047 per square metre in the province on December 31st, 2025—a 15.4% increase from 2024. In the city itself, the average stands at €3,643/m², while Marbella leads the province with €5,485/m², more than double the national average.
Factors Driving Price Increases
- Supply and Demand Imbalance: A significant shortage of available properties compared to buyer interest has pushed prices beyond the reach of many locals.
- Foreign Investment: Non-resident buyers, especially from the UK and US, play a major role, with holiday home purchases amplifying demand.
- Economic and Population Growth: Málaga's appeal as an international hub with strong economic prospects continues to draw new residents, increasing pressure on the housing market.
Future Outlook for 2026 and Beyond
Experts, such as those at Davo Law Offices in Málaga, predict continued popularity and price rises in 2026, with no significant declines expected in the short term. However, growth may moderate compared to recent years. A potential game-changer is the Spanish government's plan to levy a 100% tax on properties for non-EU, non-resident buyers (e.g., from the UK or US). If approved, this could double costs for such buyers, possibly easing demand but not eliminating foreign investment entirely.
Where to Buy in Málaga in 2026: Investment Opportunities
Despite high prices, several areas in Málaga offer strong potential for property investment. Here are key districts to consider:
| Area | Average Price (Nov 2025) | Year-on-Year Increase | Notes |
|---|---|---|---|
| Teatinos – El Cónsul – El Romeral | N/A | 25.5% | Greatest potential in Málaga city |
| Carretera de Cádiz | N/A | N/A | Most affordable district with good rental returns |
| Cruz de Humilladero | €3,528/m² | N/A | Worth considering for value |
| Bailén-Miraflores | €3,123/m² | 29.2% | High growth area |
| Churriana | N/A | 27.8% | Residential district with steady growth |
Price variations within districts are stark. For example, in Málaga's city centre, the historic centre averages €6,050/m², while Olletas is only €2,928/m². The most expensive area overall is Este at €4,762/m², and the cheapest is Ciudad Jardín at €2,550/m².
Conclusion: Navigating Málaga's Property Market
Málaga remains a top choice for foreign property buyers due to its international appeal, economic vitality, and sustained demand. While prices are high and expected to keep rising, opportunities exist in emerging districts like Teatinos and Carretera de Cádiz. Buyers should shop around to find value, stay informed on tax changes, and prepare for a competitive market. For more insights, read our guide on living costs in Málaga.