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 the fastest-growing property markets in Spain, with prices rising significantly faster than the national average.
Whether you're looking to buy your first home or invest in rental property, understanding where prices are headed in Malaga can help you make smarter decisions.
We update this article regularly to give you the freshest data and forecasts available.
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.
Insights
- Malaga property prices have grown around 12% year-on-year, roughly double the national Spanish average of 6% to 7%.
- The gap between asking prices and actual closing prices in Malaga city sits around 15% to 20%, meaning buyers still have negotiation room despite the hot market.
- Teatinos-Universidad district recorded nearly 19% price growth in 2025, making it one of the fastest-appreciating neighborhoods in all of Andalusia.
- New-build apartments in Malaga are appreciating faster than resale properties because construction permits have not kept pace with demand since 2020.
- Malaga airport handled record passenger volumes in 2025, which directly supports international buyer demand and second-home purchases along the Costa del Sol.
- The ECB deposit facility rate dropped to 2% in early 2026, making mortgage financing more accessible than it was during the 2023 peak.
- Tourist housing regulations from the Junta de Andalucia are reshaping investor strategies in central Malaga, pushing some short-term rentals toward long-term leases.
- Centro Histórico prices exceed 4,000 euros per square meter on average, making it one of the most expensive districts in southern Spain outside Marbella.
- Churriana district saw 18% price growth in late 2025, driven by families seeking more space near the airport and business parks.
- Foreign buyers represent a significant share of Malaga transactions, with British, German, and Scandinavian purchasers among the most active groups.
What are the current property price trends in Malaga as of 2026?
What is the average house price in Malaga as of 2026?
As of early 2026, the average property price in Malaga city sits around 275,000 euros (approximately 285,000 US dollars) for a typical 90-square-meter apartment, though prices vary widely depending on the neighborhood and property type.
When looking at price per square meter, Malaga properties average roughly 3,050 euros at closing (around 3,150 US dollars), while asking prices on listing portals tend to be higher at about 3,650 euros per square meter.
The realistic price range covering about 80% of residential purchases in Malaga falls between 180,000 euros and 500,000 euros (roughly 186,000 to 520,000 US dollars), with most family apartments and townhouses landing somewhere in the middle of that range.
How much have property prices increased in Malaga over the past 12 months?
Property prices in Malaga city have increased by approximately 11% to 13% over the past 12 months, while the broader Malaga province (which includes the Costa del Sol) has seen even stronger growth of around 14% to 16%.
This growth has been fairly consistent across property types, with apartments rising 10% to 13%, townhouses gaining 9% to 12%, and prime location villas in areas like El Limonar and Pedregalejo appreciating even faster in some cases.
The single most significant factor behind this price surge in Malaga has been the persistent supply shortage, as new construction permits have simply not kept up with the strong demand from both local buyers and international purchasers relocating to the Costa del Sol.
Which neighborhoods have the fastest rising property prices in Malaga as of 2026?
As of early 2026, the three neighborhoods with the fastest rising property prices in Malaga are Teatinos-Universidad, Churriana, and Cruz de Humilladero (including sub-areas like Carranque and Haza Cuevas).
Teatinos-Universidad leads with approximately 18% to 19% annual growth, Churriana follows closely at around 18%, and Cruz de Humilladero has recorded gains of about 17% over the past year.
The main demand driver in these neighborhoods is the combination of affordability relative to central Malaga, strong family appeal with larger apartments, and excellent connectivity to employment hubs like universities, hospitals, the airport, and emerging tech corridors.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Malaga.
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 property types are increasing faster in value in Malaga as of 2026?
As of early 2026, the ranking of property types by appreciation rate in Malaga goes: new-build apartments (fastest), prime location apartments and penthouses (second), townhouses in well-connected areas (third), and detached villas (most variable depending on location).
New-build and nearly-new apartments with 2 to 3 bedrooms, parking, and a terrace are appreciating at roughly 12% to 15% annually in Malaga, outpacing the broader market average.
The main reason new-build apartments are outperforming is simple scarcity, as construction permits have lagged behind demand for years, and modern amenities like air conditioning, good insulation, and community facilities command a premium from both local families and international buyers.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Malaga?
- How much should you pay for a house in Malaga?
- How much should you pay for an apartment in Malaga?
- How much should you pay for a villa in Malaga?
- How much should you pay for a studio in Malaga?
What is driving property prices up or down in Malaga as of 2026?
As of early 2026, the top three factors driving property prices in Malaga are international and lifestyle-driven demand, persistent housing supply shortages, and the regulatory environment around tourist accommodations.
The single factor with the strongest upward pressure on Malaga property prices is the supply constraint, as the gap between housing demand and new construction has widened steadily, leaving buyers competing for a limited pool of quality homes.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Malaga here.
Get fresh and reliable information about the market in Malaga
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What is the property price forecast for Malaga in 2026?
How much are property prices expected to increase in Malaga in 2026?
As of early 2026, property prices in Malaga city are expected to increase by approximately 6% to 9% over the course of the year, which represents a cooling from the 12% to 15% pace seen in late 2025 but still solid growth.
The realistic range of forecasts from different analysts spans from a conservative 3% (if interest rates stall or investor demand weakens) to an optimistic 12% (if ECB rate cuts accelerate and international demand stays very strong).
The main assumption underlying most price forecasts for Malaga is that the housing supply will remain constrained while demand from both domestic relocators and international buyers continues at current levels.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Malaga.
Which neighborhoods will see the highest price growth in Malaga in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Malaga are Teatinos-Universidad, Churriana, Cruz de Humilladero, and selected pockets of Carretera de Cádiz.
These top neighborhoods are projected to grow between 10% and 15% in 2026, outperforming the city average of 6% to 9% due to their combination of relative affordability and strong demand fundamentals.
The primary catalyst driving expected growth in these areas is the spillover effect from increasingly unaffordable central districts, as families and first-time buyers look for better value without sacrificing connectivity.
One emerging neighborhood that could surprise with higher-than-expected growth is Puerto de la Torre, which offers even more space and value while benefiting from improving transport links to central Malaga.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Malaga.
What property types will appreciate the most in Malaga in 2026?
As of early 2026, new-build and nearly-new apartments with 2 to 3 bedrooms are expected to appreciate the most in Malaga, followed by well-located family apartments in growth districts and prime coastal properties.
The projected appreciation for these top-performing new-build apartments is approximately 10% to 14% in 2026, driven by their scarcity relative to buyer demand.
The main demand trend driving this appreciation is the preference among both local families and international buyers for modern, energy-efficient homes with amenities like parking, terraces, and community pools.
On the other hand, older apartments in need of significant renovation are expected to underperform in Malaga because rising construction costs make renovation projects less attractive, and buyers increasingly prefer move-in-ready properties.
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.
How will interest rates affect property prices in Malaga in 2026?
As of early 2026, the impact of current interest rate trends on Malaga property prices is moderately supportive, as the ECB's rate cuts have made mortgages more affordable than during the 2023 peak, though rates remain high enough to keep some buyers cautious.
The ECB deposit facility rate currently sits at 2%, down from its peak, and Euribor (the main Spanish mortgage reference) is expected to gradually decline further through 2026, which should help keep demand steady in Malaga.
A 1% change in mortgage rates typically shifts the price a buyer can afford by roughly 10% in Spain, so if rates fall further in 2026, Malaga could see additional upward pressure on prices as more buyers qualify for larger loans.
You can also read our latest update about mortgage and interest rates in Spain.
What are the biggest risks for property prices in Malaga in 2026?
As of early 2026, the three biggest risks for property prices in Malaga are affordability reaching a ceiling for local buyers, potential tightening of tourist housing regulations, and a possible slowdown in international demand due to external economic shocks.
The risk with the highest probability of materializing in Malaga is the affordability constraint, as prices have risen so fast that many local families are already priced out of central districts, which could eventually slow demand or push it entirely to peripheral areas.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Malaga.
Is it a good time to buy a rental property in Malaga in 2026?
As of early 2026, buying a rental property in Malaga can still make sense if you focus on long-term rentals in districts with deep year-round demand, but you need to underwrite conservatively because purchase prices are already elevated.
The strongest argument in favor of buying now is that Malaga's structural demand drivers (population growth, international connectivity, lifestyle appeal) remain intact, and rental demand is strong in districts like Teatinos-Universidad and parts of Cruz de Humilladero.
The strongest argument for waiting is that yields have compressed as prices have risen faster than rents, and regulatory uncertainty around tourist housing in central areas could affect returns if you were counting on short-term rental income.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Malaga.
You'll also find a dedicated document about this specific question in our pack about real estate in Malaga.
Buying real estate in Malaga can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Malaga?
What is the 5-year property price forecast for Malaga as of 2026?
As of early 2026, cumulative property price growth in Malaga over the next 5 years is expected to land between 25% and 35% in our base-case scenario, which works out to roughly 4.5% to 6% average annual appreciation.
The range of 5-year forecasts spans from a conservative 10% to 15% total (if a recession hits and supply catches up) to an optimistic 40% or more (if rates stay low and international demand remains exceptionally strong).
This translates to a projected average annual appreciation rate of about 5% per year in Malaga over the 2026 to 2031 period, which is a healthy but more sustainable pace than the double-digit growth seen recently.
The key assumption most forecasters rely on is that Malaga will continue attracting net population inflows and international buyers while housing supply remains structurally constrained.
Which areas in Malaga will have the best price growth over the next 5 years?
The top three areas in Malaga expected to deliver the best price growth over the next 5 years are Teatinos-Universidad, Cruz de Humilladero, and the westward family zones around Churriana, all of which combine affordability with strong rental demand.
These top-performing areas are projected to see cumulative 5-year price growth of 35% to 50%, potentially outperforming the city average by 5 to 10 percentage points.
This aligns closely with our shorter-term forecast, as the same fundamentals (affordability spillover, connectivity improvements, and family-friendly profiles) that drive growth in 2026 are expected to persist over the medium term.
The currently undervalued area with the best potential for outperformance over 5 years is Campanillas, which sits further northwest but benefits from industrial employment zones, lower entry prices, and improving infrastructure links to central Malaga.
What property type will give the best return in Malaga over 5 years as of 2026?
As of early 2026, well-located 2 to 3 bedroom apartments with parking and a terrace in growth districts are expected to give the best total return over 5 years in Malaga, combining solid appreciation with reliable rental income.
The projected 5-year total return for this property type is approximately 45% to 60% when you add capital appreciation (around 30% to 40%) plus net rental income (around 15% to 20% cumulative over five years).
The main structural trend favoring apartments is that they are Malaga's dominant and most liquid asset class, making them easier to rent and resell, while supply constraints on quality new-build stock keep values supported.
For investors seeking a balance of return and lower risk, family apartments in established districts like parts of Carretera de Cádiz offer slightly lower upside but greater price stability and more consistent tenant demand.
How will new infrastructure projects affect property prices in Malaga over 5 years?
The top three major infrastructure projects expected to impact property prices in Malaga over the next 5 years are improvements to the Cercanías commuter rail network, continued expansion of the metro system, and urban regeneration projects in districts like Carretera de Cádiz and the port area.
Properties near completed or announced infrastructure improvements in Malaga typically enjoy a price premium of 5% to 15% compared to similar properties further from transit access points.
The neighborhoods that will benefit most from these infrastructure developments are the "middle ring" districts like Cruz de Humilladero, parts of Carretera de Cádiz, and Teatinos-Universidad, where better connectivity directly improves commute times to central Malaga and major employment areas.
How will population growth and other factors impact property values in Malaga in 5 years?
Malaga province is projected to continue growing at around 0.8% to 1.2% annually over the next 5 years, which translates to roughly 40,000 to 60,000 additional residents and steady upward pressure on property values.
The demographic shift with the strongest influence on property demand in Malaga is the influx of younger professionals and remote workers (both Spanish and international) seeking affordable coastal living combined with good digital connectivity and quality of life.
Migration patterns are expected to remain a key driver, as Malaga continues attracting both domestic migrants from more expensive Spanish cities and international buyers (particularly from the UK, Germany, and Scandinavia) looking for second homes or permanent relocation.
The property types and areas that will benefit most from these demographic trends are modern 2 to 3 bedroom apartments in well-connected districts like Teatinos-Universidad and Churriana, which appeal to young families and professionals seeking space at reasonable prices.
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 is the 10 year property price outlook in Malaga?
What is the 10-year property price prediction for Malaga as of 2026?
As of early 2026, cumulative property price growth in Malaga over the next 10 years is expected to land between 55% and 75% in our base-case scenario, assuming the city maintains its appeal as a lifestyle destination with constrained housing supply.
The range of 10-year forecasts spans from a conservative 30% to 40% total (if Spain faces prolonged economic headwinds or supply finally catches up) to an optimistic 90% or more (if Malaga becomes an even more dominant international hub).
This translates to a projected average annual appreciation rate of about 4.5% to 5.8% per year in Malaga over the 2026 to 2036 decade, which is sustainable growth rather than the exceptional double-digit pace of recent years.
The biggest uncertainty factor in making 10-year property price predictions for Malaga is the long-term trajectory of European interest rates and how climate considerations might affect demand patterns along the Mediterranean coast.
What long-term economic factors will shape property prices in Malaga?
The top three long-term economic factors that will shape property prices in Malaga over the next decade are the euro area interest rate environment, sustained migration and demographic growth into the region, and Malaga's position as a tourism and connectivity hub.
The single long-term economic factor with the most positive impact on Malaga property values is likely to be continued population growth driven by lifestyle migration, as more people choose coastal cities with good international connections and quality of life over expensive northern European capitals.
The single long-term economic factor posing the greatest structural risk to Malaga property values is the possibility of housing policy interventions (rent controls, tourist housing bans, or development restrictions) that could dampen investor demand or distort market dynamics.
You'll also find a much more detailed analysis in our pack about real estate in Malaga.
Is buying a property in Malaga a good long-term investment?
Malaga remains a strong long-term residential investment as of the first half of 2026 if you buy with a "hold through cycles" mindset, focus on locations with deep year-round demand, and avoid over-relying on short-term tourist rental assumptions in central areas.
The Malaga-specific advantage is the city's unusual combination of international airport connectivity, lifestyle appeal, growing tech and services employment, and a warm climate that continues attracting both permanent residents and second-home buyers from across Europe.
The Malaga-specific risk to keep in mind is that the city's fortunes are more tied to international demand flows than most Spanish cities, which means it can outperform in good times but may also feel external economic shocks more quickly than domestically-driven markets.
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 Housing Price Index | Spain's official statistics agency and the baseline measure for price trends. | We used it to anchor Spain-wide price momentum and validate Malaga-specific data. We cross-checked the new-build versus resale split against local sources. |
| MIVAU Property Transactions | Government data based on recorded transactions, which is hard to manipulate. | We used it to verify real market activity and price direction. We balanced this against listing-based indexes. |
| Colegio de Registradores | Built from property registry records, one of the cleanest sources for prices. | We used it to check transaction-based pricing and foreign buyer activity. We validated whether Malaga runs hotter than Spain overall. |
| Banco de España Housing Dashboard | Spain's central bank aggregating multiple reputable housing datasets. | We used it to triangulate official, appraisal, and listing measures. We framed valuation risk at a national level for Malaga context. |
| Tinsa Malaga City Index | A long-running, widely cited appraisal firm with transparent methods. | We used it as our primary source for actual transaction-level pricing in Malaga. We rolled forward quarterly data to estimate January 2026 levels. |
| Tinsa Centro District | Same trusted methodology focused on Malaga's historic center. | We used it to identify where prices are structurally high. We separated prime areas from catch-up districts. |
| Tinsa Teatinos-Universidad | Granular district data from an established valuation index. | We used it to spot one of Malaga's fastest-growth demand hubs. We compared growth districts to prime coastal areas. |
| Tinsa Carretera de Cádiz | A major, high-supply district where mass-market trends show early. | We used it to represent broad apartment market and affordability constraints. We compared mass-market to premium district growth. |
| idealista Malaga City Index | Spain's largest housing portal with a long-running listing index. | We used it to capture current asking prices in Malaga's fast market. We estimated the gap between asking and closing prices. |
| idealista Malaga Province Index | Gives broader Costa del Sol context beyond the city itself. | We used it to see if surrounding areas are pulling the market up. We checked demand heat across the wider Malaga region. |
| Fotocasa Malaga Index | A major Spanish property portal with a long-running price index. | We used it as a second listing-based check against idealista. We confirmed price direction without relying on one portal. |
| European Central Bank Key Rates | The official source for euro area policy rates affecting mortgages. | We used it to set the financing backdrop as of the first half of 2026. We translated rate scenarios into housing demand pressure. |
| Banco de España Euribor Publication | The central bank publishing official mortgage reference indices. | We used it to ground the cost of borrowing story for buyers. We framed why 2026 demand might cool or accelerate. |
| Ministry of Transport Construction Permits | Official government statistics for construction pipeline and future supply. | We used it to judge whether Malaga supply is catching up to demand. We explained why prices stay high even if demand slows. |
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If you want to go deeper, you can read the following: