Renting vs buying in Malaga: which one makes more sense?

Many expats and foreign buyers wonder whether it’s better to rent or buy property in Malaga. The decision is not always straightforward and depends on a variety of factors, including your financial goals, lifestyle preferences and how long you plan to stay in the city.

As with everywhere else in the world, renting can provide flexibility and lower upfront costs, while buying can be a long-term investment and a way to settle permanently in Spain.

In this guide, we’ll compare renting and buying in Malaga from both financial and lifestyle perspectives. We’ll examine typical costs, market trends, neighbourhood options and practical considerations for expats.

Overview of the Malaga property market

Malaga offers a wide range of housing options from modern city apartments and historic flats in the Centro Histórico to coastal villas and family homes in Pedregalejo and El Limonar. Each choice comes with its own benefits and challenges.

Malaga’s property market continues to attract international buyers and long-term renters.

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.

Rental demand remains strong, especially for one and two-bedroom apartments in central districts and coastal neighbourhoods.

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Renting property in Malaga

Renting is often the first option for newcomers to the city or those who are not yet ready to commit to buying a property. It allows you to experience life in different neighbourhoods without the long-term responsibilities of ownership.

Whether you’re in Malaga for work, study or a short-term stay, renting offers flexibility and the chance to explore what the city has to offer before making a major financial commitment.

Below, we break down the key advantages and disadvantages of renting.

Pros of renting in Malaga

• Flexibility to move! You won’t be tied down, especially as circumstances change
• Access to high-demand areas
• Try different neighbourhoods and see which suits you best
• Lower upfront costs (generally deposit and first month’s rent)
• Little responsibility for maintenance or repairs

Cons of renting in Malaga

• No equity building over time
• Unadvantageous short-term rental contracts
• Rent can increase with inflation or market changes
• Disinterested landlords / limited control over property modifications
• No say over the comunidad (community of owners)
• Potential scams

READ MORE: 7 things to look out for when renting in Malaga

Typical rents in Malaga vary by area. In the Centro Histórico, a one-bedroom apartment can cost around €900 per month. In Pedregalejo and El Limonar, similar apartments can range from €1,100 to €1,400 per month.

Renting is often ideal for those staying less than three years or for people exploring the city before committing to a purchase.

Buying property in Malaga

Buying property in Malaga can be a rewarding choice for those planning to stay long-term, retirees seeking a permanent home or investors looking to benefit from the city’s growing real estate market.

Ownership offers stability, potential financial growth and freedom to personalise your property. However, it also comes with significant upfront costs and ongoing responsibilities.

Here we outline the main benefits and challenges of buying in Malaga to help you make an informed decision.

Pros of buying in Malaga

• An opportunity to buy on the Costa del Sol
• Potential long-term investment and property value growth
• Ability to renovate or decorate the property freely
• Stability and a permanent home for families or retirees
• Excellent income source (Airbnb potential)
• Protection from inflation

Cons of buying in Malaga

• High upfront costs, including deposit, taxes and legal fees
• Responsibility for maintenance and community fees
• Property values may fluctuate depending on the market

Average property prices in Malaga mean that a two-bedroom apartment in Centro Histórico can cost around €350,000, while coastal areas such as Pedregalejo and El Limonar can reach €450,000 or more.

Foreign buyers may also need a mortgage, which requires proof of income and legal documentation.

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Renting vs buying in Malaga

Financial comparison

A simple comparison can help clarify costs. Renting a one-bedroom apartment in Centro Histórico at €900 per month equals €10,800 per year.

Buying a similar apartment with a €600 monthly mortgage would cost €7,200 per year, excluding taxes and fees. That said, additional costs for owners include property tax, community fees and maintenance.

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

Renting may be cheaper in the short term, while buying can make sense over several years if property values increase, you plan to stay long-term or you have money sitting around.

Lifestyle considerations

Ultimately, choosing whether to rent or buy in Malaga depends on your personal situation. Retirees, families and those who have chosen to settle down often prefer to buy, while digital nomads and short-term residents tend to rent.

That’s because renting suits short-term stays, offers flexibility, and allows you to explore different parts of Malaga, with lower upfront costs. Conversely, buying is better for long-term plans, family stability or investment purposes. It can also be a solid investment and provide long-term stability.

Your decision should also consider lifestyle preferences such as proximity to the beach, city amenities and local schools.

READ MORE: The best neighbourhoods in Malaga for foreign buyers

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Speak with our Malaga property expert

Choosing whether to rent or buy in Malaga can feel overwhelming, especially if you are unfamiliar with the local market and legal requirements. Every buyer or renter’s situation is different, and professional guidance can save you time, money and stress.

Our Malaga-based real estate expert can help you assess your options, find the right property in the ideal neighbourhood and navigate the buying or renting process from start to finish.

Whether you are looking for a short-term rental, a permanent home, or an investment opportunity, personalised advice makes all the difference.

Email property@malagaguru.com to discuss your property goals and take the first step toward living in beautiful Malaga.