Authored by the expert who managed and guided the team behind the Spain Property Pack
Yes, the analysis of Malaga's property market is included in our pack
Malaga has become one of Spain's hottest property markets, with prices climbing around 17% year-on-year and now sitting above their 2008 peak levels.
If you're wondering whether January 2026 is the right time to buy, you're not alone, as thousands of buyers are asking the same question while watching prices continue their upward climb.
In this article, we break down the latest housing prices in Malaga, supply-demand dynamics, rental yields, and what the data actually tells us about where the market is heading, and we constantly update this blog post to reflect the most recent figures.
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 Malaga.
So, is now a good time?
As of early 2026, it's "rather yes" for buying property in Malaga, though not a "strong yes" because affordability is stretched and double-digit growth is unlikely to repeat.
The strongest signal is that Malaga's for-sale inventory remains near historic lows, with only around 4,700 active listings for a city of nearly 600,000 people, which keeps sellers in control and supports prices.
Another strong signal is that rental demand remains intense, with rents at around 16 euros per square meter and vacancies extremely low, meaning investors can still generate decent yields while waiting for appreciation.
Population growth in Malaga province, multiple buyer pools (locals, domestic movers, international relocations), and ECB rates now sitting around 2% rather than the 2023 peak all add extra support to the market.
The best strategy right now is to target well-connected neighborhoods like Teatinos, Carretera de Cadiz, or Este for long-term holds, focus on renovated apartments with terraces or parking, and price your offer based on real comparables rather than optimistic asking prices.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property purchase.
Is it smart to buy now in Malaga, or should I wait as of 2026?
Do real estate prices look too high in Malaga as of 2026?
As of early 2026, Malaga property prices are showing signs of being stretched on affordability measures, with the Bank of Spain flagging mild-to-moderate overvaluation nationally (roughly 1% to 8.5% depending on method), though this does not suggest a 2007-style bubble.
One clear on-the-ground signal is that Malaga asking prices have jumped around 17% to 18% year-on-year to reach approximately 3,650 to 3,800 euros per square meter, which is faster than most markets can sustain long-term without buyer fatigue setting in.
However, Malaga's gross rental yield still sits around 4.6% to 5.2%, which is not "bubble territory" because rents have also climbed strongly to around 15.80 euros per square meter, meaning landlords are still finding real tenant demand behind these prices.
You can also read our latest update regarding the housing prices in Malaga.
Does a property price drop look likely in Malaga as of 2026?
As of early 2026, the likelihood of a meaningful property price decline in Malaga over the next 12 months is low, mainly because supply remains tight and demand is supported by multiple buyer pools including locals, domestic movers, and international relocations.
A plausible downside-to-upside range for Malaga property prices over the next 12 months would be roughly minus 3% to plus 8%, with the base case leaning toward mid-single-digit growth rather than a correction.
The single most important macro factor that could trigger a price drop in Malaga would be a sharp rise in financing costs, since many buyers rely on mortgages, and higher rates would directly squeeze purchasing power in this already-stretched market.
However, this scenario looks unlikely in the near term because the ECB deposit rate has come down to around 2% as of late 2025, and major forecasts expect rates to remain stable or drift slightly lower rather than spike back up.
Finally, please note that we cover the price trends for next year in our pack about the property market in Malaga.
Could property prices jump again in Malaga as of 2026?
As of early 2026, the likelihood of a renewed double-digit price surge in Malaga within the next 12 months is medium, because while demand remains strong, affordability constraints are starting to cap how fast prices can climb.
A plausible upside price change range for Malaga over the next 12 months would be around 5% to 10%, with the higher end possible if borrowing costs drop further or investor appetite returns strongly.
The single biggest demand-side trigger that could drive prices to jump again in Malaga would be a meaningful ECB rate cut, since lower mortgage rates directly boost purchasing power and tend to lift activity quickly in high-demand coastal cities.
Please also note that we regularly publish and update real estate price forecasts for Malaga here.
Are we in a buyer or a seller market in Malaga as of 2026?
As of early 2026, Malaga remains a seller-leaning market overall, especially for well-located and renovated properties, because active inventory is low and price growth has stayed strong at around 17% year-on-year.
Malaga city currently has only around 4,700 active for-sale listings on major portals for a population near 600,000, which translates to roughly 2 to 3 months of supply at recent sales pace, well below the 5 to 6 months typically considered balanced, meaning buyers have limited bargaining power.
The share of listings with price reductions in Malaga appears relatively low compared to softer markets, which suggests that most sellers are still able to hold firm on their asking prices, particularly for apartments in sought-after districts like Centro, Este, and Teatinos.
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.
Are homes overpriced, or fairly priced in Malaga as of 2026?
Are homes overpriced versus rents or versus incomes in Malaga as of 2026?
As of early 2026, Malaga homes look reasonably priced relative to rents (gross yields around 4.6% to 5.2%) but clearly stretched relative to local incomes, with a typical apartment costing roughly 8 times the median household income.
The price-to-rent ratio in Malaga is around 19 to 20 years of rent to equal the purchase price, which is higher than the 15 to 17 years often considered balanced, but not extreme compared to other Spanish coastal cities.
The price-to-income multiple in Malaga is around 8 times, based on an average apartment price near 290,000 euros and median household net income around 36,600 euros, which is well above the 4 to 5 times typically considered affordable and suggests affordability pressure will cap future growth.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Malaga.
Are home prices above the long-term average in Malaga as of 2026?
As of early 2026, Malaga property prices are clearly above their recent trend and have surpassed their 2008 nominal peak, with asking prices now around 3,650 to 3,800 euros per square meter compared to roughly 3,400 euros at the previous high.
The recent 12-month price change in Malaga has been around 17% to 18%, which is significantly faster than the pre-pandemic pace of roughly 5% to 7% annually and suggests the market has been running hotter than historical norms.
However, when adjusted for inflation, Malaga prices are still below the 2007/2008 peak in real terms, according to national research from BBVA, which means today's market is "expensive" but not in the same territory as the credit-fueled bubble of the mid-2000s.
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What local changes could move prices in Malaga as of 2026?
Are big infrastructure projects coming to Malaga as of 2026?
As of early 2026, the biggest planned infrastructure project in Malaga is the Metro Line 2 extension from Guadalmedina to Hospital Civil, a 1.8-kilometer underground expansion with three new stations that is expected to boost property values in the Bailen-Miraflores and La Trinidad districts by improving connectivity.
The timeline for this Metro Line 2 extension shows construction started in January 2024, with the project now around 50% complete and opening expected in early 2027, backed by 150 million euros in European Investment Bank financing.
For the latest updates on the local projects, you can read our property market analysis about Malaga here.
Are zoning or building rules changing in Malaga as of 2026?
The single most important regulatory change being discussed in Malaga is around tourist-use housing licenses, with Andalusia actively updating rules and Malaga city banning new short-term rental registrations in 43 neighborhoods where such rentals exceed 8% of housing stock.
As of early 2026, the net effect of these tourist rental restrictions could be mildly positive for long-term rental supply (as some units shift back to traditional leases) but negative for investor returns in affected areas, with limited direct impact on overall sale prices because demand remains multi-sourced.
The areas most affected by these rule changes in Malaga include popular tourist zones like El Ejido, La Malagueta, Pedregalejo, and parts of Centro, where short-term rentals had proliferated and where new licenses are now frozen.
Are foreign-buyer or mortgage rules changing in Malaga as of 2026?
As of early 2026, the main foreign-buyer rule change affecting Malaga is the end of Spain's property-linked Golden Visa program around 2025, which could slightly reduce marginal investor demand at the top end but is unlikely to meaningfully dent overall prices since Malaga's demand comes from many sources beyond visa seekers.
The most likely foreign-buyer impact going forward is simply fewer ultra-high-value purchases from non-EU investors specifically chasing residency, though other routes like the digital nomad visa and non-lucrative visa continue to bring international buyers to Malaga.
On the mortgage side, the most significant recent change has been the ECB rate environment, with the deposit rate now around 2%, which is materially easier than the 2023 peak and has helped keep financing accessible for buyers in Malaga, though no major new LTV or stress-test rules are currently expected.
You can also read our latest update about mortgage and interest rates in Spain.
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.
Will it be easy to find tenants in Malaga as of 2026?
Is the renter pool growing faster than new supply in Malaga as of 2026?
As of early 2026, renter demand in Malaga is clearly outpacing new rental supply, which is why rents have climbed around 6% to 10% year-on-year to reach approximately 15.80 euros per square meter and vacancy remains extremely low.
The strongest signal of renter demand in Malaga is population growth in the province, which has been robust through 2025, combined with high purchase prices pushing more households into the rental market because they cannot afford to buy.
On the supply side, new rental listings in Malaga are scarce, with only around 1,600 to 1,700 long-term rental listings active on major portals at any given time, and new construction completions remain insufficient to close the gap, with roughly 8,000 new homes expected across the province in 2025.
Are days-on-market for rentals falling in Malaga as of 2026?
As of early 2026, there is no single official days-on-market series for Malaga rentals, but proxy signals like high rent levels at local highs and extremely low active listings suggest well-priced units in good locations are being absorbed quickly, likely within 2 to 4 weeks.
The difference in absorption speed between Malaga's best areas and weaker areas is notable, with rentals in Centro, Este (Pedregalejo, El Limonar), and Teatinos typically filling faster than those in more peripheral districts like Churriana or Puerto de la Torre.
One common reason days-on-market falls in Malaga is the structural undersupply of long-term rentals combined with steady inflows of students, remote workers, and lifestyle migrants who compete for a limited pool of available units.
Are vacancies dropping in the best areas of Malaga as of 2026?
As of early 2026, vacancy rates in Malaga's best-performing rental areas like Centro (around 16.70 euros per square meter), Este (Pedregalejo, El Limonar), and Teatinos appear to be at or near historic lows, with rents at local highs suggesting very tight conditions.
While there is no official vacancy rate published for Malaga districts, the national effective vacancy for long-term rentals sits around 4% and drops to 2% to 3% in high-demand city centers, and Malaga's sought-after neighborhoods likely fall into this tighter range.
One practical sign that Malaga's best areas are tightening first is that landlords in Centro and Este are increasingly able to demand higher deposits, shorter notice periods, and stricter tenant screening because they know multiple applicants will compete for any decent listing.
By the way, we've written a blog article detailing what are the current rent levels in Malaga.
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Am I buying into a tightening market in Malaga as of 2026?
Is for-sale inventory shrinking in Malaga as of 2026?
As of early 2026, for-sale inventory in Malaga remains near historic lows, with national studies showing stock only around 9% above 2014 levels and multiple reports confirming that Malaga is among the tightest markets in Spain.
Malaga city currently shows around 4,700 active for-sale listings on major portals, which translates to roughly 2 to 3 months of supply at recent transaction pace, well below the 5 to 6 months typically considered balanced and indicating a clearly tight market.
The single most likely reason inventory is shrinking in Malaga is that existing owners are reluctant to sell into a market where they would struggle to find a replacement home, combined with limited new construction failing to keep pace with demand.
Are homes selling faster in Malaga as of 2026?
As of early 2026, there is no single official median days-on-market figure published for Malaga, but strong year-on-year price growth of around 17% and tight inventory suggest that well-priced, well-located homes are selling relatively quickly, likely within 30 to 60 days for desirable properties.
Year-on-year, selling times in Malaga appear stable-to-slightly-faster for good stock, with agents consistently reporting that new listings in sought-after areas like Centro, Este, and Teatinos attract multiple inquiries within days, while overpriced or poorly presented properties can sit for months.
Are new listings slowing down in Malaga as of 2026?
As of early 2026, new for-sale listings in Malaga appear to be running below historical norms, with national reporting describing the current period as one of the largest drops in listing supply on record, and agents in Malaga consistently noting that fresh stock is scarce, especially in sought-after neighborhoods.
The typical seasonal pattern in Malaga sees more listings in spring (March to May) and early autumn (September to October), but even during these peak periods, current flow remains muted compared to pre-pandemic years.
The single most plausible reason new listings are slowing in Malaga is that existing owners secured low-rate mortgages in prior years and are reluctant to sell and refinance at today's rates, combined with uncertainty about finding a replacement home in such a tight market.
Is new construction failing to keep up in Malaga as of 2026?
As of early 2026, new housing construction in Malaga province is running below what demand requires, with roughly 8,000 new homes expected to complete in 2025, which is insufficient to meaningfully ease the supply-demand imbalance in a market with strong multi-source demand.
Nationally, housing completions rose around 7.6% in 2024 to approximately 86,600 units, but this remains far below the 400,000-plus annual completions seen before the 2008 crisis, and Malaga's share of this limited new supply cannot keep pace with its above-average population and demand growth.
The single biggest bottleneck limiting new construction in Malaga is the combination of high land costs in desirable areas, lengthy permitting processes, and labor shortages in the construction sector, all of which slow the pipeline and keep supply constrained.
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.
Will it be easy to sell later in Malaga as of 2026?
Is resale liquidity strong enough in Malaga as of 2026?
As of early 2026, resale liquidity in Malaga is generally strong for mainstream property types, with apartments and townhouses in well-connected districts like Teatinos, Carretera de Cadiz, Centro, and Este typically finding buyers within 1 to 3 months when priced realistically.
The estimated median days-on-market for resale homes in Malaga appears to be around 30 to 90 days for fairly priced properties, which is consistent with a "healthy liquidity" benchmark of under 90 days and suggests that exit should not be a major concern for most buyers.
The property characteristic that most improves resale liquidity in Malaga is location in a high-demand district with good transport links, combined with features like a terrace, natural light, parking, or recent renovation, as these attributes consistently attract the largest buyer pool.
Is selling time getting longer in Malaga as of 2026?
As of early 2026, selling time in Malaga does not appear to be lengthening significantly overall, though there is increasing segmentation between well-priced properties (which sell quickly) and overpriced listings (which can sit for months).
The current median days-on-market in Malaga is estimated at around 30 to 90 days for most listings, with a realistic range spanning from under 30 days for well-priced, renovated apartments in prime areas to 120-plus days for properties priced above market or in less desirable locations.
One clear reason selling time can lengthen in Malaga is affordability pressure, as stretched price-to-income ratios mean fewer buyers can qualify for the asking price, leading to longer negotiations and more price sensitivity among purchasers.
Is it realistic to exit with profit in Malaga as of 2026?
As of early 2026, the likelihood of selling with a profit in Malaga is medium-to-high if you hold for 5 years or more, because the city's fundamentals (tight supply, strong demand, population growth) support long-term appreciation even if short-term gains are less automatic.
The minimum holding period in Malaga that most often makes exiting with profit realistic is around 5 to 7 years, which allows time to absorb transaction costs and ride out any short-term volatility while benefiting from the structural demand that supports prices.
The total round-trip cost drag in Malaga (buying plus selling costs) is approximately 12% to 16% of the property value, including around 8% to 10% in purchase taxes and fees plus 3% to 6% in selling costs like agency commission and capital gains tax, which means you need meaningful appreciation just to break even.
The single factor that most increases profit odds in Malaga is buying below market value through off-market deals, distressed sellers, or properties needing renovation, combined with targeting high-demand segments like 2-bedroom apartments in Centro, Este, or Teatinos.
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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 Malaga, 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 |
|---|---|---|
| INE (Spain's National Statistics Institute) | Spain's official statistics agency and the standard reference for home-price movements. | We used it to anchor official price direction and validate asking-price trends. We also used INE's income atlas to compute price-to-income ratios for Malaga. |
| Bank of Spain (BdE) | Spain's central bank, consolidating housing-market indicators with transparent sourcing. | We used it to frame the macro story around valuation pressure and financing conditions. We also used it to triangulate risk signals beyond local listing portals. |
| European Central Bank (ECB) | The ultimate source for euro area policy-rate levels that drive mortgage pricing. | We used it to explain the interest-rate backdrop affecting Malaga buyers. We also used it to assess downside scenarios tied to rate changes. |
| Idealista | Spain's largest property portal with transparent methodology and granular local breakdowns. | We used it to estimate current asking prices and rents by Malaga district. We also used live listing counts to gauge inventory tightness. |
| Colegio de Registradores | Property registrars who compile transaction and price data from actual registrations. | We used it to validate transaction momentum and foreign-buyer presence in Malaga. We also used it to cross-check whether portal signals match registered reality. |
| MIVAU (Ministry of Housing) | The Spanish government's housing statistics hub and directory of official series. | We used it to understand official transaction and construction metrics. We also used it to assess new construction supply against demand in Malaga. |
| European Investment Bank (EIB) | The EU's long-term lending institution financing major infrastructure projects. | We used it to confirm details on Malaga Metro Line 2 extension funding and timeline. We also used it to assess infrastructure impact on neighborhood prices. |
| BOJA (Andalusian Official Gazette) | The official publication of Andalusia's rules, not a commentary layer. | We used it to explain tourist-rental regulation changes affecting Malaga. We also used it to keep regulatory discussion fact-based rather than rumor-driven. |
| BBVA Research via El Pais | Major bank research unit with clear attribution in a top-tier Spanish newspaper. | We used it to anchor a plausible 2026 base case for Spain and then localized for Malaga. We also used it to frame supply constraints as structural rather than hype. |
| Indomio | Property portal providing real-time asking price and rent tracking by district. | We used it to validate November 2025 price levels and district breakdowns. We also used it as a secondary source to cross-check Idealista figures. |
| Guide to Malaga | Local property report updated monthly with agent insights and official data citations. | We used it to understand on-the-ground market conditions and listing scarcity. We also used it to validate rental yield expectations and neighborhood trends. |
| Global Property Guide | International property research platform tracking yields and prices across markets. | We used it to benchmark Malaga gross rental yields against national averages. We also used it to contextualize Spain's construction activity trends. |
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.