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
This article gives you a complete, up-to-date overview of the Malaga real estate market in 2026, including current housing prices in Malaga, average days-on-market, neighborhood trends, rental demand, and what to expect if you are a foreigner looking to buy property in Malaga.
We constantly update this blog post to reflect the latest data and market shifts, so you always have access to the most accurate information 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.
How's the real estate market going in Malaga in 2026?
What's the average days-on-market in Malaga in 2026?
As of early 2026, a well-priced apartment in Malaga city typically spends around 75 days on the market, which is roughly two and a half months from listing to sale.
That said, properties in sought-after neighborhoods like Centro, Soho, La Malagueta, El Palo, and Pedregalejo often sell in just 30 to 60 days when priced correctly, while overpriced or renovation-heavy units can linger for 90 to 150 days or more.
Compared to one or two years ago, selling times in Malaga have actually shortened slightly because demand continues to outstrip supply, especially in central and coastal areas where inventory remains tight and listings get absorbed quickly.
Are properties selling above or below asking in Malaga in 2026?
As of early 2026, most residential properties in Malaga close at around 5% to 10% below the initial asking price, though prime units in high-demand locations can sell at asking or even slightly above.
Roughly 70% to 80% of properties in Malaga sell at or below asking, while the remaining 20% to 30% of transactions, particularly for turnkey apartments in walkable neighborhoods, can attract bidding situations, and we are fairly confident in this estimate given consistent data from multiple sources.
Bidding wars and above-asking sales in Malaga are most likely for move-in-ready two or three-bedroom apartments in Centro, Soho, and La Malagueta, where supply is genuinely scarce and buyer competition is fierce.
By the way, you will find much more detailed data in our property pack covering the real estate market in Malaga.
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.
What kinds of residential properties can I realistically buy in Malaga?
What property types dominate in Malaga right now?
In Malaga municipality, the residential market is dominated by apartments in mid-rise blocks, which account for roughly 70% to 75% of listings, followed by terrace houses and townhouses at around 15% to 20%, with standalone villas and chalets making up the remaining 5% to 10%.
Apartments represent by far the largest share of the Malaga property market, particularly in districts like Carretera de Cadiz, Cruz de Humilladero, Bailen-Miraflores, and Centro, where multi-family buildings are the standard housing type.
Apartments became so prevalent in Malaga because the city grew rapidly during the 1960s through 2000s, when urban planning favored dense mid-rise construction to accommodate population growth, and this building pattern has continued due to limited central land and high demand.
If you want to know more, you should read our dedicated analyses:
- 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?
Are new builds widely available in Malaga right now?
New-build properties represent roughly 10% to 15% of residential listings in Malaga city, which means the vast majority of available housing stock consists of resale apartments and houses from previous decades.
As of early 2026, the highest concentration of new-build developments in Malaga can be found in Teatinos, parts of Cruz de Humilladero and Martiricos-La Roca, Puerto de la Torre, and Churriana, while central areas like Centro Historico and La Malagueta have very limited new construction due to scarce buildable land.
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Which neighborhoods are improving fastest in Malaga in 2026?
Which areas in Malaga are gentrifying in 2026?
As of early 2026, the top neighborhoods in Malaga showing the clearest signs of gentrification include Soho (Ensanche del Centro), La Trinidad, El Perchel, Lagunillas near La Victoria, and Huelin in the Carretera de Cadiz district.
In these areas, you can see visible changes such as new specialty coffee shops and coworking spaces opening in Soho, building facades being renovated with exposed brick in La Trinidad, younger international residents moving into previously working-class blocks in Lagunillas, and beach bars upgrading in Huelin.
Over the past two to three years, these gentrifying Malaga neighborhoods have experienced estimated price appreciation of 15% to 25%, with some micro-areas seeing even sharper gains as they become spillover destinations for buyers priced out of Centro and La Malagueta.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Malaga.
Where are infrastructure projects boosting demand in Malaga in 2026?
As of early 2026, the top areas in Malaga where major infrastructure projects are boosting housing demand include the neighborhoods along the Metro Line 2 extension corridor, particularly La Trinidad, Hilera, and the area around the future Hospital Civil station.
The specific infrastructure project driving this demand is the 1.8 kilometer underground extension of Malaga Metro Line 2 from Guadalmedina to Hospital Civil, which includes three new stations and is backed by a 150 million euro loan from the European Investment Bank.
Works on the Metro Line 2 extension started in January 2024, and the project is expected to be completed by early 2027, meaning buyers who purchase now along the corridor could benefit from improved connectivity within the next one to two years.
In Malaga, properties near announced metro stations typically see price increases of 5% to 10% upon project announcement, with an additional 5% to 15% uplift once construction is completed and the stations open for service.
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.
What do locals and insiders say the market feels like in Malaga?
Do people think homes are overpriced in Malaga in 2026?
As of early 2026, the general sentiment among locals and market insiders in Malaga is that homes have become significantly overpriced relative to local salaries, with many residents feeling squeezed out of central neighborhoods they could have afforded five years ago.
When arguing that homes are overpriced in Malaga, locals typically point to the fact that average asking prices have risen over 15% year-on-year, that a typical 80 square meter apartment now costs around 300,000 euros in the city, and that wages in Malaga remain well below those in Madrid or Barcelona.
Those who believe prices are fair in Malaga often counter that demand from international buyers, remote workers, and tourism-linked investment justifies current prices, and that the city's quality of life, climate, and improving infrastructure make it competitive with other Mediterranean destinations.
The price-to-income ratio in Malaga has become stretched compared to the Andalusian and Spanish averages, with local households needing roughly 10 to 12 years of average gross income to purchase a typical apartment, versus a national average closer to 7 to 8 years.
What are common buyer mistakes people regret in Malaga right now?
The most frequently cited buyer mistake that people regret in Malaga is assuming that a property can automatically be used for short-term tourist rentals without first verifying that the property has a valid tourist license, which has become increasingly difficult to obtain since the city banned new registrations in 43 neighborhoods in late 2024.
The second most common buyer mistake in Malaga is underestimating building quality issues in older apartment blocks, such as humidity, poor insulation, noise from busy streets or nightlife, and high community fees for buildings with deferred maintenance, which can turn an apparent bargain into an expensive headache.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Malaga.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Malaga.
Get the full checklist for your due diligence in Malaga
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How easy is it for foreigners to buy in Malaga in 2026?
Do foreigners face extra challenges in Malaga right now?
The overall difficulty level for foreigners buying property in Malaga is moderate, meaning the process is legally straightforward since Spain welcomes foreign buyers, but there are administrative steps that require patience and organization.
Foreigners buying in Malaga must obtain a NIE (foreigner identification number), open a Spanish bank account, and comply with anti-money laundering documentation requirements to prove the source of funds, but there are no legal restrictions on foreign property ownership itself.
The most common practical challenges foreigners encounter in Malaga include navigating Spanish-language paperwork when many notaries and registries operate only in Spanish, understanding the specific Andalusian regulations around tourist rentals and property taxes, and coordinating remote transactions when viewing trips are limited.
We will tell you more in our blog article about foreigner property ownership in Malaga.
Do banks lend to foreigners in Malaga in 2026?
As of early 2026, mortgage financing is readily available to foreign buyers in Malaga from major Spanish banks including Santander, CaixaBank, BBVA, Bankinter, and Sabadell, though non-residents face stricter terms than Spanish residents.
Foreign buyers in Malaga can typically expect loan-to-value ratios of 60% to 70%, meaning you need a deposit of 30% to 40% of the property price, with interest rates ranging from 3% to 5% depending on whether you choose a fixed or variable rate mortgage.
Banks in Malaga typically require foreign applicants to provide a passport, NIE, proof of income including three to six months of payslips and one to two years of tax returns, bank statements showing savings, and a credit report from their home country, all of which may need to be translated into Spanish.
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.
How risky is buying in Malaga compared to other nearby markets?
Is Malaga more volatile than nearby places in 2026?
As of early 2026, Malaga shows moderately higher price volatility than inland Andalusian cities like Cordoba or Jaen, roughly similar volatility to nearby coastal markets like Fuengirola and Benalmadena, and somewhat lower volatility than the ultra-luxury pockets of Marbella.
Over the past decade, Malaga experienced sharper price swings than most Spanish cities, with prices more than doubling from around 1,570 euros per square meter in 2015 to over 3,650 euros by late 2025, compared to more modest growth in less tourism-exposed markets.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Malaga.
Is Malaga resilient during downturns historically?
Historically, Malaga has shown moderate resilience during economic downturns, remaining more liquid than many Spanish markets because there are always buyers interested in coastal property, but prices can still correct significantly when credit tightens or demand drops.
During the 2008-2014 financial crisis, property prices in Malaga dropped by approximately 30% to 40% from peak to trough, and the market took roughly seven to eight years to recover to pre-crisis levels, with the recovery finally gaining momentum after 2017.
In Malaga, the property types and neighborhoods that have historically held value best during downturns include quality apartments in prime walkable locations like Centro and La Malagueta, properties with sea views, and units in well-maintained buildings with elevators and reasonable community fees.
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How strong is rental demand behind the scenes in Malaga in 2026?
Is long-term rental demand growing in Malaga in 2026?
As of early 2026, long-term rental demand in Malaga is growing strongly, with rents up over 10% year-on-year and a significant portion of listings getting snapped up within 24 hours of being posted.
The tenant demographics driving long-term rental demand in Malaga include young professionals working in the city's growing tech sector, university students attending the Universidad de Malaga, expats and digital nomads seeking Mediterranean lifestyle, and local families who cannot afford to buy.
The neighborhoods in Malaga with the strongest long-term rental demand right now include Teatinos near the university, Centro and Soho for young professionals, Carretera de Cadiz for families seeking value, and El Palo and Pedregalejo for expats wanting coastal living with local character.
You might want to check our latest analysis about rental yields in Malaga.
Is short-term rental demand growing in Malaga in 2026?
The most significant regulatory change affecting short-term rentals in Malaga is the city's moratorium banning new tourist rental registrations in 43 neighborhoods where such rentals exceed 8% of housing stock, which took effect in late 2024 and will remain in place for three years while the city updates its urban planning rules.
As of early 2026, short-term rental demand in Malaga remains very strong due to record tourism numbers, but supply growth has been capped by regulations, creating a situation where existing licensed properties benefit from reduced competition.
The current estimated average occupancy rate for short-term rentals in Malaga is around 80% to 85%, with average daily rates reaching approximately 160 euros in 2025, reflecting high visitor demand and constrained supply.
The guest demographics driving short-term rental demand in Malaga include international tourists from across Europe, business travelers attending conferences and events, digital nomads seeking month-long stays, and Spanish domestic tourists taking weekend breaks.
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 are the realistic short-term and long-term projections for Malaga in 2026?
What's the 12-month outlook for demand in Malaga in 2026?
As of early 2026, the 12-month demand outlook for residential property in Malaga remains positive, with strong buyer interest expected to continue though purchasers are becoming more price-sensitive and willing to negotiate.
The key factors most likely to influence demand in Malaga over the next 12 months include European Central Bank interest rate decisions affecting mortgage affordability, any new government policies targeting foreign or investor buyers such as the proposed 100% tax on non-EU non-resident purchases, and the continued strength of Malaga's tourism sector.
Based on current momentum and market fundamentals, forecasters expect Malaga property prices to increase by approximately 5% to 10% over the next 12 months, which would represent a moderation from the 15% to 20% annual gains seen in 2024 and 2025.
By the way, we also have an update regarding price forecasts in Spain.
What's the 3-5 year outlook for housing in Malaga in 2026?
As of early 2026, the 3-5 year outlook for housing prices and demand in Malaga is positive but selective, with the best-performing properties expected to be those in walkable lifestyle neighborhoods, family-friendly commuter areas, and coastal locations where supply is inherently constrained.
The major development projects expected to shape Malaga over the next 3-5 years include the completion of the Metro Line 2 extension to Hospital Civil by early 2027, continued airport capacity expansion toward 30 million passengers annually, and potential further metro extensions toward Ciudad Jardin, Rincon de la Victoria, and Campanillas.
The single biggest uncertainty that could alter the 3-5 year outlook for Malaga is how aggressively national and regional governments implement policies to address housing affordability, including potential new taxes on foreign buyers or further restrictions on short-term rentals that could reduce investor demand.
Are demographics or other trends pushing prices up in Malaga in 2026?
As of early 2026, demographic trends are having a significant impact on housing prices in Malaga, with population growth from both domestic migration and international arrivals adding persistent upward pressure on demand.
The specific demographic shifts most affecting prices in Malaga include an influx of Northern European retirees seeking Mediterranean retirement, young Spanish professionals relocating from Madrid and Barcelona for better quality of life, and a growing digital nomad population drawn by the city's climate, connectivity, and relative affordability compared to other European cities.
Beyond demographics, non-demographic trends pushing prices in Malaga include the normalization of remote work enabling location-independent professionals to choose lifestyle over commute, strong international investment flows from buyers seeking euro-denominated assets, and record tourism numbers driving second-home and rental-focused purchases.
These demographic and trend-driven price pressures in Malaga are expected to continue for at least the next 5 to 10 years, as the fundamental appeal of the city's climate, infrastructure, and lifestyle shows no signs of diminishing, though the pace of price growth may moderate as affordability constraints bite.
What scenario would cause a downturn in Malaga in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Malaga would be a combination of significantly higher interest rates reducing buyer purchasing power, new government policies sharply restricting foreign or investor purchases, and a meaningful drop in tourism due to economic recession in key source markets.
Early warning signs that such a downturn is beginning in Malaga would include a noticeable increase in average days-on-market beyond 100 days, negotiation discounts widening to 15% or more below asking, a sustained drop in transaction volumes reported by INE, and an increase in listings as owners try to exit before prices fall further.
Based on historical patterns from the 2008-2014 crisis, a potential downturn in Malaga could realistically see prices fall by 20% to 35% over a two to four year period, with the most investor-heavy and overpriced micro-areas experiencing sharper corrections than established residential neighborhoods with strong local demand.
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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) | It's Spain's official statistics agency and the standard source for national and regional housing data. | We used it to anchor the national context of price growth and transaction trends. We then treated Malaga's market as a local deviation from that national baseline. |
| idealista | It's Spain's dominant property listings portal with consistent, published asking-price time series. | We used it to describe what sellers are asking in Malaga city and province. We use it carefully as "asking price," not final sale price. |
| Tinsa | It's a long-running Spanish housing valuation provider with transparent methodology based on actual appraisals. | We used it as a valuation-based benchmark that's usually closer to achievable prices than listing asks. We compared it against asking-price portals to infer negotiation pressure. |
| Colegio de Registradores | It's the official registry body publishing property-market statistics based on actual recorded transactions since the 1990s. | We used it for registry-based evidence on prices, mortgages, and foreign buyer composition. We treat it as the most reliable complement to INE for housing-market structure. |
| Banco de Espana | It's Spain's central bank with rigorous economic research on housing market fundamentals and risks. | We used it to frame supply constraints, historical cycles, and financing conditions. We relied on it for credible long-term market context. |
| Fotocasa Negotiation Index | It's a major Spanish property portal with a published, quantified methodology for measuring negotiation gaps. | We used it to estimate whether deals close above or below asking prices. We treated it as a negotiation heat indicator rather than a perfect sale-to-ask measure. |
| Ayuntamiento de Malaga | It's the city government publishing official notices tied to planning rules and tourist rental restrictions. | We used it to confirm that Malaga has actively limited new tourist-housing registrations. We used it to show this is a policy-driven market, not just tourism demand. |
| European Investment Bank | It's the EU's long-term lending institution publishing official project details and financing terms. | We used it to document the Metro Line 2 extension project details and timeline. We relied on it for credible infrastructure impact analysis. |
| AirDNA | It's a widely used short-term rental data provider with clear methodology and consistent market coverage. | We used it to give concrete estimates of short-term rental occupancy and daily rates. We cross-checked it against official sources to avoid relying on one private dataset. |
| Junta de Andalucia | It's the regional government body that runs the tourism registry and sets regulations for Andalusia. | We used it to describe the practical compliance path for legal short-term rentals. We used it to flag what buyers should verify before purchasing. |