Málaga has become a top destination for both living and investing, offering a unique balance between professional ambition and quality of life. The city’s appeal lies in its pleasant climate, strong transport connections, cultural richness and a dynamic business environment.
The city has emerged as a technological hub in southern Europe, attracting both local and international investors. Foreign buyers now account for a third of the homes sold in Málaga, with British, German, French and Moroccan nationals among the top investors. Non resident international buyers face stricter rules when applying for mortgages in Spain. You can read the details in our article Buying property in Spain for foreigners
As of 2023, the leading industries in Málaga include Retail, Construction, Hospitality and Professional Activities, according to the Junta de Andalucía. The city’s strengths lie in tourism, international investments, a high number of new business registrations and robust exports. Málaga has a population of 586,384 residents according to INE, and recorded 21.3 million overnight stays in the same year.
Málaga has been an important city since 800 BC. For the Phoenicians, Malaga was a strategic coastal hub for trading salted fish and cultivating sweet wine. Over time, as different powers took control, the Romans saw Malaca as a centre of commerce and culture, building the Roman Theatre. When the Berbers from North Africa ruled, Málaga became a vital port protected by the Alcazaba fortress, Gibralfaro Castle and city walls. After the Catholic Monarchs recaptured the city, it became a strategic point in the Reconquista and later played a significant role in the Spanish Civil War. Today, Málaga is a top international destination, attracting tourists for cultural, rural and beach vacations. It is also a popular location for living, investing and remote working.
Málaga offers a strong property market with significant growth, rising nearly 10% annually since 2019. The city benefits from high demand for homes, a booming tourism sector and a growing reputation as a tech hub. Its Mediterranean climate, rich cultural heritage and accessibility via air, sea and land make it an attractive place to live or invest.
The city provides diverse property options, from luxury homes to affordable countryside houses. Although rental yields are slightly below the national average, Málaga remains a solid investment due to its rising property values and strong economic growth.
Malaga faces rising property prices, in fact, it exceeded pre-2008 bubble levels in 2019 and since then it has increased significantly until 2024, almost an average of 10% annually. Earlier this year, Malaga saw a 6.8% increase in property transactions with a strong demand for both new and second-hand homes. This trend also affects Barcelona, Madrid, Balears, Canarias, Alicante and San Sebastian.
According to Arcadis, Malaga is together with Barcelona and Madrid among the 100 most expensive cities in the world for construction costs, including residential, commercial and public infrastructure. The top three cities in the ranking are London, Geneva and New York.
Málaga’s construction sector saw a 9.3% rise in building permits between May and June 2024, according to La Opinion. There is a growing focus on rehabilitating unused industrial buildings and converting them into homes, which is seen as a more affordable and sustainable option. Energy efficiency upgrades are also becoming a priority in new construction projects. Despite this growth, the shortage of affordable housing continues in an environment of increasing property prices as we explain in the article Why are costa del sol properties un such high demand?
Málaga is not only a holiday or retirement destination but has also become a leading tech hub in southern Europe, with nearly 40 museums and revitalised neighbourhoods like Soho. Is one of the best cities globally, receiving recognition from the European Commission and Forbes. Málaga has been a leader in digital tools, sustainability and cultural tourism. The city prioritises safety, with extensive green areas and smart urban systems, including LED lighting and bike lanes.
According to the City Council, Málaga is the 4th province in Spain for registered tourists, the 7th fastest-growing (9.4%) and the 2nd province with the most new tourists, behind only Barcelona. Málaga’s airport received more than 22 million passengers in 2023 and an increase of 15% is predicted for 2024. Cruise passenger arrivals exceeded half a million, up 47.3% from 2022 and 883,000 passengers chose the high-speed rail (AVE) to arrive at Malaga.
Do you need a professional help for buy a property in Malaga?
In Málaga you can explore many museums, a UNESCO World Heritage site, hundreds of cultural landmarks and archaeological sites. The city is famous for its festivals and traditions. Events like the Starlite Marbella festival, the Malaga Film Festival or The Feria de Málaga. Semana Santa (Holy Week) is another important cultural event filled with passion and religious traditions.
The city is home to notable museums like the Picasso Museum, which houses over 200 works of art, and the Carmen Thyssen Museum, featuring 230 pieces of 19th-century Spanish art. Other attractions include the Contemporary Art Center and the Automobile Museum, showcasing cars and fashion.
Málaga also has impressive architecture, including the Alcazaba fortress, the Gibralfaro Castle, the Roman Theater and the Cathedral.
Málaga is known for its Mediterranean climate, mild temperatures and sunny days, making it an attractive place to live. During 2023, Malaga average temperature during the day was 25 Degrees and 14.7 degrees during the night. It rained 54 days that gave 177.55 mm precipitation, 11 of those included thunder, according to El Tiempo.
Málaga is a transportation hub for land, sea and air travel. The airport offers flights to more than 50 countries, its port helps boost tourism and trade, with daily ferry services to African ports like Ceuta and Melilla. The city has high-speed trains (AVE) that link it to over fifteen Spanish cities, including Madrid and Barcelona. Highways A-7 and A-45 connect Málaga to various Spanish cities. The city is also expanding its metro network and the city buses are frequent and affordable, with different ticket options. The Málaga Bici service allows for easy bike rentals and commuter trains link the city to nearby towns like Torremolinos and the airport. Long-distance trains and buses provide access to other Spanish cities. Taxis are also available, with metered fares in the city and flat rates for trips outside, like to the airport.
Málaga has ranked highly in global quality of life and economic growth potential rankings by Forbes. Factors such as mobility, safety, healthcare, education, cultural offerings, environmental quality, cost of living, job market, housing and cleanliness usually determine the quality of life of the residents in Spain.
Málaga stands out for its friendly locals, its pleasant climate, natural surroundings and leisure activities.
Málaga and its province have experienced strong economic growth, outperforming both Andalusia and Spain. Key sectors driving this growth include tourism, construction, agriculture, technology services and logistics. From 2019 to 2023, according to Malaga Open for Business, 90 international companies chose Málaga for expansion and the province led Andalusia in new business creation, accounting for 36% of all new companies, with the technology sector leading the way. Additionally, Málaga set a new employment record and saw the average salary increase by 25%
Málaga has a wide range of properties available for different budgets and needs, whether for permanent living, vacation homes or rentals. Common types include apartments, which are popular in urban areas and vary in size and quality, villas, typically detached, townhouses and countryside properties. According to Idealista, there are over 50.000 second hand properties and over 300 new constructions for sale. 40% of all availability are apartments, with 60% of those being detached properties. Residential housing estates, known as “urbanizaciones,” combine different property types and provide security and community.
In 2023, detached houses grew in popularity by 4.3%, while apartment sales dropped by 5.5%.
According to Internations, a global expat community, Málaga was ranked as the best city in the world to live in, based on feedback from over 12,000 expats. Factors like friendliness, affordability, high quality of life and the ease of making friends were among the reasons cited. In fact, 89% think malagueños are friendly towards foreign residents.
In September 2024, the price of second-hand homes in Málaga continued to rise, increasing by 11.9% compared to the same month last year, reaching €3,397 per square metre. This growth makes Málaga the province with the highest year-on-year price variation in Andalusia, nearly four percentage points above the regional average, reflecting significant capital appreciation.
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The housing situation in Málaga presents both significant challenges and opportunities. Key issues include a lack of supply, high housing costs and bureaucratic hurdles, which can hinder progress. However, there is a growing focus on sustainable development and flexibility in urban planning, which could alleviate some of these challenges.
Málaga’s property market is among the most dynamic in Spain, attracting a diverse array of individuals, including tourists, expatriates, and digital nomads. This influx has intensified competition for housing and led to unprecedented rental price increases, exacerbated by a limited supply of homes for both sale and rent.
In the province of Málaga, prices for second-hand homes have surged by 11.9% since September 2023, reaching a historic high of €3,397 per square metre. This follows a year-over-year increase of 12.6% the previous year and 8.1% the year before that.
The capital, Málaga, experienced an even sharper rise in prices, with an increase of 17.9%, bringing the average to €3,095 per square metre. This follows increases of 13.3% and 6.9% in the prior two years. Overall, the market has shown favourable upward trends since 2015, according to Idealista
The rental market is facing even greater challenges due to the shortage of available housing. As of September 2024, rental prices in Málaga stand at €14.9 per square metre per month, reflecting a 10.1% increase over the past year and a substantial 17.5% rise from two years ago. In the capital, the rental prices saw a 13.2% increase last year, reaching €14.5 per square metre, following a 15.8% rise two years ago.
Málaga faces a critical housing deficit, needing more than double the number of homes currently offered each year. Concerns about housing have risen in importance, surpassing even issues like cleanliness and safety, as families need to allocate 49% of their average income for rent while homebuyers must use 43% of their disposable income, a figure that exceeds the recommended limits by financial experts. Recently, around 15,000 people protested against the lack of affordable housing and rising rents, driven in part by the presence of over 12,000 tourist apartments. Demonstrators called for sustainable solutions and improved housing policies.
Although property prices in Málaga continue to rise since 2015, there are still areas like Teba where the price per square metre for a second-hand home is as low as €495. Other towns such as Riogordo and Periana also offer prices below €1,000 per square metre.
In contrast, property prices exceeding €6,800 per square metre in Marbella highlight the need for strategic planning to address rising construction costs and limited land availability.
Málaga has emerged as the new epicentre of luxury real estate in Spain, leading the market with 34% of luxury properties, surpassing regions like the Balearic Islands, Madrid and Barcelona. More than 50% of the supply of properties have swimming pools either communal or private.
Málaga has become a busy tech hub known as “Málaga Valley,” attracting many tech companies and encouraging innovation in digital fields. This growth appeals to international investors and remote workers, while the influx of millions of tourists each year boosts the local economy and helps property values rise.
The city’s strong economy and excellent transport links make it an attractive place to live, whether for vacations or long-term residence. With increasing property values, a variety of housing options and a steady demand, investing in Málaga offers the potential for good returns, capital growth and a high quality of life.
According to El Sur, despite high rental prices, the profitability of buy-to-let investments in Málaga is relatively low compared to other regions in Spain. The average gross rental yield for housing in Málaga is 5.6%, below the national average of 7.2%, due to the high property purchase prices. In contrast, cities like Murcia (8.2%) and Huelva (7.4%) offer higher returns. However, despite the lower yield, Málaga’s strong tourism market provides a longer high season and more secure investment opportunities.
Commercial properties in Málaga provide a better return at around 8%, offices in Málaga yield 6.8%and parking spaces offer the lowest profitability, with a 4.7% return.
Regarding Tax Residents
Significant tax resident deductions include:
Purchase of the Main Residence: Only applicable to those who made the purchase in 2013.
€2,000 Deduction for Work and Pension income: This also applies to expatriate residents, regardless of where the income comes from.
Rental Revenue Deduction: Applicable to both foreign and Spanish rental revenue.
Exemption for the Sale of a Habitual Residence: Profit from the sale of a habitual residence is not subject to income tax for people over 65.
Transfer of Liabilities and Assets: Relevant to those under 65.
Sale of the primary residence overseas: exempt from the reinvestment tax.
Deduction for Energy Efficiency Improvement Projects: Includes energy-efficient house upgrades.
50% Real Estate Transition Exemption in 2012: For properties purchased in 2012.
Decreases in Capital Gains: Pertains to the sale of property purchased before 1995.
For Non-Tax Residents
Do you need a professional help for buy a property in Malaga?
At Tejada Solicitors, we are dedicated to providing a smooth and stress-free experience throughout the purchasing and selling process. We handle every step of the conveyancing procedure, from contacting the seller’s solicitor and agent to overseeing the private purchase contract and negotiating terms with all parties. Additionally, we assist with property registration, tax payments, transfers, and utility contracts and ensure all procedures are completed.
This is what working with us looks like:
The initial consultation is free, and depending on your location and urgency, you can choose whether it’s a video conference or in person. Meeting in person is crucial for building trust and getting to know the team guiding you through the property purchasing process in a foreign country. During the consultation, we discuss the purchasing procedures and our services.
After the initial meeting, we provide a transparent estimate of all purchasing-related costs to help you manage your budget efficiently. We encourage you to carefully review all cost details to avoid potential traps from competing organizations.
We maintain open and frequent communication through various channels such as video calls, email, phone, WhatsApp, and in-person meetings. You can choose the most suitable communication channels for you.
Finally, before signing the sales contract, we provide a comprehensive property report containing all legal information and any discovered documentary irregularities about the property.
We then produce a sale contract in Spanish and English, outlining all agreed-upon terms, focusing on protecting your rights. The contract is reviewed and approved with your explicit consent before any action is taken.
Our lawyer will accompany you to the notary to sign the deed, ensuring a smooth completion, or we can sign on your behalf using a Power of Attorney.
Tejada Solicitors’ dedication to open and transparent communication has been a key factor in our success.
In order to buy property in Málaga, you must have a valid passport, obtain an NIE Number (Foreigner Identification Number), and open a Spanish bank account.
The NIE is necessary for all property transactions, allowing non-tax residents to purchase property in Spain. Following the property purchase, a Spanish bank account is required for setting up direct debits for utilities and taxes, so we advise you to open the bank account a month before finalizing the purchase to ensure prompt processing of utility and tax contracts and subsequent direct debits.
Tejada Solicitors offers assistance in obtaining an NIE and opening a bank account in Spain. With a signed general power of attorney, we can act on your behalf to simplify the property-buying process.
It’s crucial to understand the total cost of purchasing property, including VAT, notary fees, and land registry fees. Tejada Solicitors also provides information on legal service fees related to property acquisition upon request, with no commitment to proceed.
After completion, we will continue to assist with the transfer of ownership of utility contracts (water, electricity, Wi-Fi, gas, etc.) and the payment of property-related taxes. These payments will be effortlessly processed through your Spanish bank account.
Do you need a professional help for buy a property in Malaga?
Purchasing property in Malaga involves several important steps. Firstly, you must make a serious offer that reflects market conditions, the property’s condition, and your payment method. It’s crucial to consult with a real estate agent for guidance during the negotiation phase.
When your offer is accepted, the purchasing process begins. Here’s what you need to do:
During this phase, the property lawyer conducts a comprehensive investigation to ensure the property’s legitimacy. This includes verifying the property registry to match the information with the legal owner and identify potential charges or encumbrances. They also confirm that no renters are occupying the property, validate planning permissions, assess property taxes, and ensure there are no overdue community payments.
Once the purchase contract is signed, the completion stage begins, typically taking two to eight weeks. The transaction is finalized at the Notary Public, where the lawyer reviews the deeds, provides verbal translation if needed, and oversees the process. Payments are often made using a banker’s draft.
Finally, you will receive the keys to your new house.
Tejada Solicitors conducts thorough due diligence on property-related legal issues and provides clients with comprehensive legal reports covering all major topics.
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