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The Andalusia property market has hit record highs in early 2026, with regional prices reaching an all-time peak of 2,755 euros per square meter and Malaga province breaking the 4,000 euros barrier for the first time.
We constantly update this blog post with the latest data, so you always have fresh, reliable information at your fingertips.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Andalusia.
What's the Current Real Estate Market Situation by Area in Andalusia?
Which areas in Andalusia have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas in Andalusia are Marbella's Nagueles-Milla de Oro at around 6,756 euros per square meter, Nueva Andalucia in Marbella at approximately 5,989 euros per square meter, and Cadiz's beachfront Playa Santa Maria del Mar-Playa Victoria district at roughly 4,211 euros per square meter.
In these premium Andalusia neighborhoods, you can expect to pay anywhere from 4,000 euros to nearly 7,000 euros per square meter, which means a typical 100-square-meter apartment would cost between 400,000 and 700,000 euros before transaction costs.
Several specific factors explain why these Andalusia areas command the highest prices in 2026:
- Nagueles-Milla de Oro (Marbella): direct beach access, proximity to luxury hotels, and established international buyer demand
- Nueva Andalucia (Marbella): concentration of golf courses, international schools, and strong expat infrastructure
- Playa Victoria (Cadiz): rare urban beachfront location within a historic city with limited new supply
Which areas in Andalusia have the most affordable property prices in 2026?
As of early 2026, the most affordable property areas in Andalusia with reasonable liquidity are Granada's Almanjayar district at around 1,680 euros per square meter, Almeria city at approximately 1,509 euros per square meter, Jaen province at about 863 euros per square meter, and Granada's La Chana neighborhood at roughly 2,047 euros per square meter.
In these more affordable Andalusia districts, prices typically range from 850 to 2,100 euros per square meter, meaning a decent two-bedroom apartment of 80 square meters could cost between 70,000 and 170,000 euros.
The main trade-off when buying in these lower-priced Andalusia areas is that Granada's Almanjayar requires more hands-on tenant management and has slower resale liquidity, Almeria city lacks the tourism infrastructure of the Costa del Sol, Jaen province has a smaller rental tenant pool and limited international buyer interest, and La Chana sits further from Granada's historic attractions and university campus.
You can also read our latest analysis regarding housing prices in Andalusia.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Which Areas in Andalusia Offer the Best Rental Yields?
Which neighborhoods in Andalusia have the highest gross rental yields in 2026?
As of early 2026, the Andalusia neighborhoods delivering the highest gross rental yields are Almeria city center at approximately 9% gross, Granada's Almanjayar at around 5.9% gross, Huelva city at roughly 6.9% gross, and Jaen city at about 6.9% gross.
Across Andalusia as a whole, typical gross rental yields in 2026 range from 4% to 6% for most investment properties, though prime luxury areas like Marbella's Milla de Oro tend to compress yields down to around 4.2% due to their higher purchase prices.
Here is why these top-yielding Andalusia neighborhoods deliver stronger returns than other areas:
- Almeria city center: very low purchase prices combined with steady local tenant demand and growing tourism interest
- Granada Almanjayar: entry prices under 1,700 euros per square meter with solid working-class rental demand
- Huelva city: affordable capital values with stable employment from port and industrial activity
- Jaen city: lowest purchase prices in Andalusia combined with consistent local tenant pool from olive industry workers
Finally, please note that we cover the rental yields in Andalusia here.
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Which Areas in Andalusia Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Andalusia perform best on Airbnb in 2026?
As of early 2026, the top-performing Andalusia neighborhoods for Airbnb short-term rentals are Malaga's Centro Historico with average nightly rates around 106 euros and 83% occupancy, Granada's Albaicin with strong Alhambra-driven demand, Seville's Barrio Santa Cruz with year-round tourist traffic, and Marbella's Puerto Banus with premium rates exceeding 150 euros per night.
In these high-demand Andalusia vacation rental areas, top-performing properties can generate monthly revenues ranging from 2,000 to 3,500 euros during peak seasons, though annual averages typically fall between 1,500 and 2,500 euros per month after accounting for seasonality and vacancy.
The main factors making these Andalusia neighborhoods outperform others for short-term rentals are:
- Malaga Centro Historico: walkability to museums, restaurants, and Malaga airport connectivity drives year-round bookings
- Granada Albaicin: unique UNESCO heritage status and Alhambra proximity create consistent international demand
- Seville Barrio Santa Cruz: central location near the Alcazar and cathedral supports strong festival-season premiums
- Marbella Puerto Banus: luxury positioning allows premium pricing from yacht visitors and affluent tourists
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Andalusia.
Which tourist areas in Andalusia are becoming oversaturated with short-term rentals?
The three Andalusia tourist areas showing clear signs of short-term rental oversaturation in early 2026 are Malaga's Centro Historico and adjacent beach neighborhoods like La Malagueta and El Palo, Seville's historic core including Barrio Santa Cruz and El Arenal, and Granada's Albaicin-Realejo corridor near the Alhambra.
In Malaga Centro alone, there are over 8,500 active Airbnb listings, while the broader Malaga province has more than 41,000 properties currently rented to tourists, representing one of the highest concentrations of vacation rentals in all of Spain.
The clearest indicator of oversaturation in these Andalusia areas is the active regulatory response: Malaga's city council has frozen new VFT licenses in 43 neighborhoods classified as saturated zones, and Seville now enforces a rule limiting short-term rentals to no more than 10% of properties in each neighborhood.
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which Areas in Andalusia Are Best for Long-Term Rentals?
Which neighborhoods in Andalusia have the strongest demand for long-term tenants?
The Andalusia neighborhoods with the strongest long-term tenant demand in early 2026 are Granada's Campus de la Salud area near the university hospital, Malaga's Teatinos district with its university and medical facilities, Seville's Nervion employment corridor, and Seville's Macarena district adjacent to major hospitals.
In these high-demand Andalusia rental areas, typical vacancy periods last only two to four weeks between tenants, with annual vacancy rates often below 3% due to the steady flow of students, medical professionals, and young workers seeking accommodation.
The tenant profiles driving demand in each of these Andalusia neighborhoods are quite specific:
- Granada Campus de la Salud: medical students, hospital staff, and health sector researchers
- Malaga Teatinos: university students, young professionals, and families near the regional hospital
- Seville Nervion: office workers, retail employees, and professionals at nearby business parks
- Seville Macarena: healthcare workers, nursing students, and hospital administration staff
These Andalusia neighborhoods share one key characteristic that makes them attractive to long-term tenants: proximity to major employment anchors like hospitals, universities, or transport hubs, which creates reliable year-round demand independent of tourism cycles.
Finally, please note that we provide a very granular rental analysis in our property pack about Andalusia.
What are the average long-term monthly rents by neighborhood in Andalusia in 2026?
As of early 2026, average long-term monthly rents in Andalusia vary significantly by neighborhood: Granada city averages around 10.4 euros per square meter, Cadiz city averages approximately 12.1 euros per square meter, Marbella averages about 19.4 euros per square meter, and Malaga city averages roughly 13 euros per square meter.
In the most affordable Andalusia neighborhoods for renters, entry-level apartments of 60 to 70 square meters typically rent for 500 to 750 euros per month, with areas like Granada's La Chana, Almeria's outlying districts, and Jaen city offering the lowest rates.
In mid-range Andalusia neighborhoods such as Seville's Triana, Granada's Realejo, or Malaga's Cruz de Humilladero, two-bedroom apartments commonly rent for 800 to 1,200 euros per month, depending on condition and proximity to transport.
In the most expensive Andalusia rental markets like Marbella's Nagueles-Milla de Oro at 20.9 euros per square meter or Nueva Andalucia at 20.3 euros per square meter, high-end apartments typically command 1,800 to 3,000 euros per month, with luxury villas reaching well above that range.
You may want to check our latest analysis about the rents in Andalusia here.
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Which Are the Up-and-Coming Areas to Invest in Andalusia?
Which neighborhoods in Andalusia are gentrifying and attracting new investors in 2026?
As of early 2026, the Andalusia neighborhoods showing the clearest gentrification signals and attracting new investors are Granada's San Francisco Javier with its 28.6% year-on-year price growth, Granada's Zaidin with 20.2% annual appreciation, Marbella Pueblo with a remarkable 31.5% price increase, and Seville's Alameda de Hercules area gaining popularity among younger buyers and digital workers.
These gentrifying Andalusia neighborhoods have experienced annual price appreciation rates ranging from 20% to over 30% in the past year, far outpacing the regional average of around 18.9% and indicating strong investor interest and changing neighborhood profiles.
Which areas in Andalusia have major infrastructure projects planned that will boost prices?
The Andalusia areas most likely to see price boosts from major infrastructure projects are Malaga's Teatinos-Hospital Civil corridor benefiting from the Metro Line 2 extension, Seville's northern districts along the planned Metro Line 3 route toward Virgen Macarena hospital, and Almeria province gaining from the AVE high-speed rail connection expected in late 2026.
Malaga's Metro Line 2 extension involves 1.8 kilometers of new underground infrastructure and three new stations, backed by 150 million euros from the European Investment Bank; Seville's Metro Line 3 northern section has secured 173 million euros in funding and will connect key residential areas to the hospital district; and the AVE Almeria project has passed 50% completion with a target operational date of October 2026.
Historically in Andalusia, areas benefiting from major transport infrastructure improvements have seen price increases of 8% to 15% within three years of project completion, as improved connectivity attracts both owner-occupiers and investors seeking better rental yields.
You'll find our latest property market analysis about Andalusia here.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which Areas in Andalusia Should I Avoid as a Property Investor?
Which neighborhoods in Andalusia with lots of problems I should avoid and why?
The Andalusia neighborhoods that present the most challenges for foreign amateur investors in early 2026 are Malaga Centro and saturated beach areas if your investment plan depends on short-term rentals, Marbella's ultra-luxury zones like Nagueles-Milla de Oro if you are stretching financially, and low-liquidity interior districts like parts of Jaen province if you need a realistic exit strategy.
Here are the specific problems affecting each of these Andalusia areas:
- Malaga Centro and La Malagueta: new VFT licenses frozen in 43 neighborhoods, making Airbnb-dependent investments legally risky
- Marbella Nagueles-Milla de Oro: entry prices above 6,700 euros per square meter with gross yields around only 4%, requiring deep pockets to weather market volatility
- Rural Jaen province: very low prices but limited tenant pool and slow resale market for non-local buyers
For these Andalusia problem areas to become viable, Malaga would need to lift or relax its VFT license freeze, Marbella's luxury segment would need yield compression to reverse through rent growth, and Jaen would need significant new employment or tourism drivers to boost demand.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Andalusia.
Which areas in Andalusia have stagnant or declining property prices as of 2026?
As of early 2026, the Andalusia areas showing stagnant or declining property prices include Cadiz's Ayuntamiento-Catedral district with a negative 8.7% year-on-year change, Cadiz's Mentidero-Teatro Falla-Alameda area with a negative 5.1% annual decline, and some peripheral neighborhoods in Cordoba and inland Huelva that have underperformed the regional growth trend.
These underperforming Andalusia areas have experienced price stagnation or declines of 5% to nearly 9% over the past year, contrasting sharply with the regional average increase of 18.9% and indicating localized market weakness.
The main underlying causes of price stagnation in these Andalusia areas are:
- Cadiz Ayuntamiento-Catedral: oversupply of older properties needing renovation combined with limited parking and access challenges
- Cadiz Mentidero-Teatro Falla: previous price overshoot during post-pandemic demand surge now correcting as buyers shift to beachfront areas
- Inland Cordoba periphery: population decline and lack of employment anchors reducing local buyer demand
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Which Areas in Andalusia Have the Best Long-Term Appreciation Potential?
Which areas in Andalusia have historically appreciated the most recently?
The Andalusia areas that have delivered the strongest price appreciation over the past year are Marbella Pueblo with a remarkable 31.5% increase, Granada's San Francisco Javier at 28.6%, Malaga's Bailen-Miraflores at 29.2%, and Granada's Almanjayar rising 23.1% from a low base.
Here are the approximate appreciation figures these top-performing Andalusia areas have achieved:
- Marbella Pueblo: 31.5% year-on-year growth, driven by international demand and limited historic center inventory
- Malaga Bailen-Miraflores: 29.2% annual appreciation as buyers seek value alternatives to saturated Centro
- Granada San Francisco Javier: 28.6% increase fueled by gentrification and improved local amenities
- Granada Almanjayar: 23.1% growth from a very low base as affordability seekers enter this value district
The main driver of above-average appreciation in these Andalusia areas has been the combination of constrained housing supply, strong demand from both domestic and international buyers, and improving neighborhood infrastructure that has attracted investors seeking alternatives to already-expensive prime locations.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Andalusia.
Which neighborhoods in Andalusia are expected to see price growth in coming years?
The Andalusia neighborhoods expected to see the strongest price growth in the coming years are Malaga's Teatinos-Hospital Civil corridor benefiting from metro expansion, Granada's Centro and Figares-San Anton for their diversified demand base, Marbella's San Pedro de Alcantara as a more affordable alternative to the Milla de Oro, and Almeria city center gaining from improved AVE rail connectivity.
Here are the projected growth expectations for these high-potential Andalusia neighborhoods:
- Malaga Teatinos-Hospital Civil: 8% to 12% additional growth expected within three years of metro station opening
- Granada Centro-Figares: 5% to 8% annual appreciation supported by steady student and professional demand
- Marbella San Pedro de Alcantara: 6% to 10% yearly gains as buyers seek value while staying in the Costa del Sol ecosystem
- Almeria city center: 10% to 15% boost anticipated following AVE inauguration in late 2026
The single most important catalyst expected to drive future price growth in these Andalusia neighborhoods is the completion of major transport infrastructure projects, which historically has improved accessibility and attracted both owner-occupiers and investors within two to three years of inauguration.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What Do Locals and Expats Really Think About Different Areas in Andalusia?
Which areas in Andalusia do local residents consider the most desirable to live?
The Andalusia areas that local residents consistently rate as the most desirable to live are Granada's Centro and Figares-San Anton for their walkability and cultural offerings, Marbella's Nueva Andalucia for family-friendly infrastructure, Cadiz's Playa Victoria strip for urban beach access, and Seville's Nervion for its employment proximity and services.
Here is what makes each of these areas most desirable to Andalusia locals:
- Granada Centro-Figares: historic character, university proximity, and vibrant tapas culture within walking distance
- Marbella Nueva Andalucia: international schools, golf courses, and family-oriented community feel
- Cadiz Playa Victoria: rare combination of urban amenities with direct beach access and local authenticity
- Seville Nervion: excellent shopping, sports facilities, and easy commuting to major employers
These locally-preferred Andalusia areas tend to attract established Spanish families, professionals with stable employment, and retirees seeking convenience, which creates a different demographic profile from tourist-heavy zones.
Local Andalusia preferences often align with foreign investor targets in areas like Nueva Andalucia and Granada Centro, but diverge in places like Puerto Banus or Malaga's saturated tourist core, where locals see nightlife and tourist congestion as negatives rather than positives.
Which neighborhoods in Andalusia have the best reputation among expat communities?
The Andalusia neighborhoods with the strongest reputation among expat communities are Marbella's Nueva Andalucia and San Pedro de Alcantara for their established international infrastructure, Malaga's Centro-Soho-La Malagueta corridor for urban lifestyle seekers, and Granada's Albaicin-Realejo area for culture-focused expats.
Here is why expats prefer these Andalusia neighborhoods over others:
- Nueva Andalucia: English-speaking services, international schools like Aloha College, and active golf and social scene
- San Pedro de Alcantara: more affordable than central Marbella while maintaining access to expat amenities
- Malaga Centro-Soho: urban walkability, direct airport connectivity, and growing digital nomad community
- Granada Albaicin-Realejo: authentic Andalusian character, UNESCO heritage, and proximity to the Alhambra
The typical expat profile in these popular Andalusia neighborhoods includes British and Northern European retirees in Marbella areas, younger digital nomads and remote workers in Malaga's urban core, and culture-oriented Americans and Europeans in Granada's historic districts.
Which areas in Andalusia do locals say are overhyped by foreign buyers?
The three Andalusia areas that locals most commonly describe as overhyped by foreign buyers are Marbella's Milla de Oro for its extreme price premium, Malaga's saturated Centro Historico for its tourist congestion, and Puerto Banus for its nightlife-focused reputation.
Here is why Andalusia locals believe these areas are overvalued:
- Marbella Milla de Oro: locals view the 6,700+ euro per square meter prices as disconnected from practical value and driven by international prestige
- Malaga Centro Historico: residents see overcrowding, noise, and short-term rental saturation as negatives that tourists overlook
- Puerto Banus: locals consider it more of a seasonal party destination than a genuine residential community
Foreign buyers typically value these Andalusia areas for their brand recognition, perceived investment safety, and lifestyle amenities, whereas locals prioritize practical factors like parking availability, neighborhood tranquility, and proximity to daily services.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Andalusia.
Which areas in Andalusia are considered boring or undesirable by residents?
The Andalusia areas that residents most commonly describe as boring or undesirable include peripheral industrial zones in larger cities, isolated inland villages with declining populations, and some newer residential developments that lack walkable amenities and community character.
Here is why residents find certain Andalusia areas less appealing:
- Granada Almanjayar: perceived as working-class with limited nightlife and fewer restaurants compared to the city center
- Malaga's outer industrial periphery: car-dependent areas with limited services and no historic charm
- Inland Jaen villages: population decline has reduced local services, shops, and social activity
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Andalusia, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Idealista | Spain's largest property portal with consistent price-per-square-meter time series data. | We extracted neighborhood-level purchase prices and rental rates from their December 2025 reports. We calculated gross yields by matching rent and price data for each Andalusia district. |
| Instituto Nacional de Estadistica (INE) | Spain's official national statistics office with published methodology and experimental datasets. | We used their tourist dwelling statistics to identify short-term rental saturation zones. We also referenced their population and employment data for demand forecasting. |
| Ministry of Transport (MITMA) | Official central government housing statistics series with transparent valuation methodology. | We cross-checked private portal prices against their official appraised values. We used this as an anchor to validate that neighborhood-level data sits in a plausible range. |
| Junta de Andalucia | Regional government publishing official infrastructure project details and tax guidance. | We sourced Metro extension project specifics and timeline information. We used their ITPAJD tax guide to ground our transaction cost assumptions for Andalusia buyers. |
| Ayuntamiento de Malaga | City government stating official policy intent and legal basis for short-term rental restrictions. | We identified which Malaga neighborhoods face VFT license freezes. We used their documentation to assess regulatory risk for Airbnb-dependent investments. |
| BBVA Research | Major bank research unit with transparent macro assumptions and forward-looking scenarios. | We incorporated their Observatorio Inmobiliario outlook for 2026 market conditions. We used their demand and supply analysis to contextualize neighborhood price forecasts. |
| Tinsa | Long-running Spanish valuation firm with defined index methodology across local markets. | We used their IMIE Mercados Locales report as an independent check on price momentum. We verified that strong coastal growth isn't just a listings artifact. |
| European Investment Bank | EU lending institution with published project financing details and economic impact assessments. | We referenced their 150 million euro loan announcement for Malaga Metro Line 2. We used their projections for additional metro journeys to assess infrastructure impact. |
| Global Property Guide | International property research platform with standardized yield calculation methodology. | We cross-referenced our Andalusia yield calculations against their Spain averages. We used their data to provide context for how regional yields compare nationally. |
| Airbtics | Short-term rental analytics platform tracking Airbnb occupancy and revenue metrics. | We extracted average daily rates and occupancy data for Malaga. We used their listing counts to quantify vacation rental density in saturated zones. |
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