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Yes, the analysis of Malaga's property market is included in our pack
Thinking about buying a 3-bedroom apartment in the historic center of Malaga? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like La Malagueta or El Palo where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Spain Property Pack.
Will property prices increase in Malaga in 2025?
Yes, property prices in Malaga are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Malaga remains one of the hottest cities in Spain for both domestic and international investors.
Sure, there are some economic bumps like inflation and rising interest rates, but the main drivers behind Malaga’s price growth aren’t going anywhere.
Demand, especially in the prime coastal areas, still outstrips supply by a mile, making any major price dips a long shot. And let’s not forget—Malaga’s status as a cultural and tourist hub keeps drawing in buyers from around the world.
Signals pointing to a property price increase in Malaga
Here are some factors suggesting prices could increase:
The ongoing popularity of Malaga as a tourist destination is expected to continue into 2025, driving demand for holiday homes and investment properties, which in turn pushes up property prices.
Malaga's strategic location on the Costa del Sol and its excellent transport links, including a major airport and high-speed train connections, make it an attractive location for both national and international buyers.
The city’s cultural renaissance, with new museums and cultural events, is enhancing its appeal, attracting more affluent buyers interested in the lifestyle and amenities Malaga offers.
The limited availability of land for new developments in prime areas is expected to constrain supply, leading to increased competition for existing properties and driving up prices.
Malaga's growing reputation as a tech hub, with increasing numbers of startups and tech companies setting up in the city, is attracting a new wave of professionals looking for housing, further boosting demand.
Government initiatives to improve infrastructure and public services in Malaga are likely to enhance the city’s attractiveness, leading to increased property values.
The trend of remote working is encouraging more people to relocate to desirable locations like Malaga, where they can enjoy a better quality of life, thus increasing demand for residential properties.
Signals pointing to a property price decrease in Malaga
Here are some factors suggesting prices could fall:
Rising interest rates could make mortgages more expensive, potentially reducing the number of buyers able to afford property in Malaga.
Economic uncertainty in Europe, including potential impacts from inflation and geopolitical tensions, could dampen investor confidence and reduce demand for property.
An increase in the cost of living, including utilities and everyday expenses, might deter some potential buyers, particularly those on fixed incomes or with tighter budgets.
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If property prices go up in Malaga, how much would they increase by?
If real estate prices in Malaga were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in dynamic, growing markets like Malaga appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in the historic center for 300,000 euros today, don't be surprised if it's priced between 309,000 and 321,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Malaga real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Historic Center Apartment (60 sqm / 646 sqft) | €300,000 | €309,000 | €315,000 | €321,000 |
| Modern Apartment (75 sqm / 807 sqft) | €400,000 | €412,000 | €420,000 | €428,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | €1,000,000 | €1,030,000 | €1,050,000 | €1,070,000 |
| Studio (30 sqm / 323 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
| Loft (80 sqm / 861 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Townhouse (150 sqm / 1,615 sqft) | €800,000 | €824,000 | €840,000 | €856,000 |
| Investment Property (50 sqm / 538 sqft) | €250,000 | €257,500 | €262,500 | €267,500 |
Everything you need to know is included in our Property Pack for Malaga
If real estate prices go up in Malaga, which areas are likely to see the biggest increases?
Today, people who want to move to Malaga are looking for the charm of the old town, but they also want modern conveniences and vibrant social scenes, which Soho delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Teatinos has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Malaga market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Soho | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Centro Histórico | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Malaga. |
| El Palo | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Teatinos | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| La Malagueta | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Pedregalejo | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Huelin | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Carretera de Cádiz | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| El Limonar | Medium-High | Its proximity to the city center, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| La Victoria | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Puerto de la Torre | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| El Perchel | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Malaga
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Malaga?
In 2025, Malaga real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Malaga are seeing increased interest. Proximity to the coast, green spaces, and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In vibrant cities like Malaga, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Malaga's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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