The Malaga property market: What foreign buyers need to know

Malaga continues to shine as one of southern Europe’s most desirable cities, attracting investors, retirees and remote workers from across the world.

With its year-round sunshine, excellent transport links and cosmopolitan lifestyle, it’s no surprise that the local property market remains one of Spain’s most dynamic.

If you’re thinking about buying a home or investment property in Malaga, 2026 offers a wide range of opportunities — but also some important things to be aware of.

Here’s a detailed look at the market, neighbourhoods and trends shaping property in Malaga this year.

Overview of the Malaga property market in 2026

Based on data from the last decade, the property market in Malaga city has shown remarkable growth. From 2015 to 2025, the market has seen a Compound Annual Growth Rate (CAGR) of approximately 8.8%.

This means prices have consistently grown at a smoothed average of nearly 9% per year over the past ten years. In that time, the average price per square metre has more than doubled, climbing from around €1,572/m² in 2015 to over €3,650/m² by late 2025.

Demand remains high among both Spanish and international buyers. Northern Europeans, particularly from the UK, Germany, the Netherlands and Scandinavia, continue to dominate the market, with North Americans and digital nomads increasingly joining them in seeking a base in the Mediterranean.

The local economy, growing tourism sector and major urban regeneration projects have all helped maintain market confidence. Meanwhile, limited supply in central and coastal areas has supported property values despite rising mortgage rates.

Popular property types and price ranges in Malaga

Malaga offers a broad range of property styles and price points:

• Apartments are the most common type of purchase, especially among foreigners seeking low-maintenance living or a holiday home. A two-bedroom flat in the city centre typically costs between €250,000 and €600,000, depending on the building’s age and condition.
• Villas and detached houses are concentrated in the eastern districts and nearby suburbs such as El Limonar, Cerrado de Calderón and Pinares de San Antón, where prices often exceed €1 million.
• New builds are increasingly popular due to modern energy-efficiency standards. However, buyers should expect higher prices per square metre, as supply is limited in Malaga unless you go west.
• Resale properties can offer better value, especially in areas undergoing regeneration, such as Trinidad or Huelin.

Seasonal demand still plays a role — activity typically peaks in spring and early summer, when many overseas buyers visit Malaga to view properties in person.

SEE MORE: Unexpected or hidden costs when buying property in Malaga

Best neighbourhoods in Malaga for investment vs living

Each area of Malaga offers something distinct depending on your priorities.

• Centro Histórico: Ideal for those who love urban life. The old town’s charm, culture and nightlife make it one of the most popular spots for holiday rentals. Expect premium prices and high demand throughout the year.
• El Palo and Pedregalejo: These traditional seaside districts to the east are favourites among expats seeking a relaxed coastal lifestyle. Their family-friendly feel and beachfront promenade make them perfect for long-term living rather than short-term investment.
• El Limonar and Parque Clavero: Elegant residential zones with spacious villas, leafy streets and proximity to international schools. They appeal to families and professional buyers looking for prestige and privacy.
• Teatinos: A modern district popular with young professionals and investors thanks to its new-build apartments, metro links and university campus. Rental yields here can outperform more established areas.
• Málaga Oeste (Carretera de Cádiz, Huelin): Historically working-class but transforming fast, these neighbourhoods offer good value and solid growth potential as the city expands westward.
• Capuchinos: Here, housing is primarily traditional low-rise apartment buildings and older city homes with smaller flats, appealing to long-term residents and buyers seeking character close to the historic centre.
• La Trinidad: The housing stock here is more mixed, combining older apartment blocks and modest family homes with renovated buildings and newer developments that offer more space at comparatively affordable prices.

When choosing where to buy, consider whether you’re looking for lifestyle (proximity to the beach and culture) or investment (rental returns and resale potential). Malaga’s transport network makes it easy to enjoy both worlds.

SEE MORE: The best neighbourhoods in Malaga for foreign buyers

Key Malaga property trends for 2026

Several trends are shaping Malaga’s property market in 2026. One of the most notable is the growing demand for sustainable housing. However, while buyers clearly prefer energy-efficient homes, particularly newly built or renovated ones, the stock of such properties is limited in Malaga. Ratings on energy certificates are often poor, so many buyers are seeking properties they can renovate.

At the same time, Malaga’s profile as a hub for remote workers and digital nomads continues to rise. The Spanish digital nomad visa has firmly taken hold, and with it, a new generation of younger international buyers is entering the market. Many of them are looking for well-connected apartments near co-working spaces, cafés and transport links rather than traditional holiday homes.

The luxury market also remains resilient. Despite higher borrowing costs, demand for top-end villas and penthouses has remained strong, primarily driven by cash-rich buyers from northern Europe and beyond who view Malaga as both a secure investment and a lifestyle choice.

Finally, the abolition of Spain’s Golden Visa programme is likely to have a limited direct impact on the Malaga property market in 2026, as purchases linked to the scheme have historically accounted for a small share of total transactions. Demand from international buyers is expected to remain strong, supported by other residency routes such as the non-lucrative visa, digital nomad visa and work-based permits, as well as by lifestyle migration and Malaga’s year-round appeal.

At the top end of the market, there may be slightly less pressure on ultra-high-value homes that were primarily attractive to Golden Visa applicants, but this is unlikely to translate into broader price declines. Overall, prices and activity in Malaga in 2026 will depend far more on interest rates, limited housing supply and domestic demand than on the absence of the Golden Visa.

Five tips for foreign buyers in Spain

Buying property in Spain as a non-resident is perfectly achievable, but it’s essential to approach it carefully:

1. Research thoroughly. Spend time getting to know Malaga’s districts, market trends and property values.
2. Use reputable professionals. Always work with a qualified estate agent or an independent lawyer (not always necessary if you have a competent agent) to check that the property is free of debts and has the correct licences.
3. Budget for extra costs. In addition to the purchase price, factor in around 10–13% for taxes, legal fees and notary costs.
4. Visit before committing. Photos can be deceiving — seeing the property and neighbourhood in person helps avoid surprises.
5. Understand financing. Spanish banks typically lend up to 70% of a property’s value to non-residents, but requirements vary. Compare interest rates and terms before applying.

If you need further information about any of this, don’t hesitate to reach out to our property experts at property@malagaguru.com.

Michael Fee

Michael is a Scottish property specialist who has called Malaga home since 2019. With experience managing short-term rentals, he knows what makes a property stand out and what makes it a smart investment. Now, he helps clients find homes or investment opportunities across the Costa del Sol, from Malaga to Nerja and Estepona. For expert guidance, contact him at property@malagaguru.com.