What are the best areas for real estate in Malaga? (2026)

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

Fact-checked and reviewed by our local expert

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Anna Siudzinska 🇵🇱

Real Estate Agent

Anna Siudzińska is a dynamic business strategist and experienced manager with a proven track record in sales, marketing, and corporate expansion. With years of experience navigating both domestic and international markets, she specializes in driving growth, strengthening companies' market positions and helping clients find lucrative real estate opportunities in Spain.

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Malaga. If you’d like to learn more about us, you can check our presentation page.

What's the Current Real Estate Market Situation by Area in Malaga?

Which areas in Malaga have the highest property prices per square meter in 2026?

As of early 2026, the three most expensive areas in Malaga are Este district (around €4,760 per square meter), Centro district (around €4,160 per square meter), and Teatinos district (around €3,680 per square meter).

However, within these districts, certain micro-neighborhoods push prices much higher, with trophy seafront spots like La Térmica-Sacaba reaching €10,000 per square meter and La Malagueta-Monte Sancha commanding similar premiums.

Each of these expensive areas commands high prices for different reasons:

• La Malagueta-Monte Sancha: historic prestige, sea views, and walking distance to the port and city center.
• El Morlaco-Bellavista: elevated hillside position with panoramic coastal views and low-density living.
• La Térmica-Sacaba: brand-new high-rise seafront development with modern amenities and beach access.
• El Limonar: established wealthy enclave with large villas, mature gardens, and excellent schools nearby.

Which areas in Malaga have the most affordable property prices in 2026?

As of early 2026, the most affordable areas in Malaga are Ciudad Jardín (around €2,550 per square meter), Campanillas (around €2,710 per square meter), Churriana (around €2,850 per square meter), and Puerto de la Torre (around €2,900 per square meter).

In these neighborhoods, you can find apartments priced between €2,500 and €3,000 per square meter, which is nearly half the price of premium coastal districts in Malaga.

The main trade-offs vary by area: Ciudad Jardín is more urban and lacks beach access, Campanillas requires a car for most errands and feels suburban, Churriana sits near the airport with occasional flight noise, and Puerto de la Torre is inland with limited nightlife or cultural attractions.

You can also read our latest analysis regarding housing prices 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.

Which Areas in Malaga Offer the Best Rental Yields?

Which neighborhoods in Malaga have the highest gross rental yields in 2026?

As of early 2026, the Malaga neighborhoods with the highest gross rental yields are Ciudad Jardín (around 6.7%), Churriana (around 6.0%), Campanillas (around 5.7%), and Bailén-Miraflores (around 5.6%).

Across Malaga as a whole, typical gross rental yields range from about 4.4% in premium areas like Este district to nearly 7% in more affordable inland neighborhoods.

Each high-yield neighborhood delivers strong returns for specific reasons:

• Ciudad Jardín: low entry prices combined with steady demand from local workers and families.
• Churriana: airport proximity attracts airline staff and short-term corporate tenants year-round.
• Campanillas: tech park employees at Parque Tecnológico de Andalucía create consistent rental demand.
• Bailén-Miraflores: affordable rents attract young professionals priced out of central Malaga.

Finally, please note that we cover the rental yields in Malaga here.

Which Areas in Malaga Are Best for Short-Term Vacation Rentals?

Which neighborhoods in Malaga perform best on Airbnb in 2026?

As of early 2026, the best-performing Airbnb neighborhoods in Malaga are Centro Histórico (highest occupancy due to tourist foot traffic), Soho-Ensanche del Centro (strong demand from design and food tourists), La Malagueta (premium nightly rates near the beach and port), and Pedregalejo (popular with families and longer-stay guests).

Top-performing short-term rental properties in these Malaga neighborhoods can generate between €1,500 and €3,000 per month during peak season, though actual revenue depends heavily on property quality and management.

Each neighborhood outperforms for distinct reasons:

• Centro Histórico: walkability to museums, restaurants, and the cathedral drives first-time visitor bookings.
• Soho-Ensanche del Centro: street art scene and trendy restaurants attract younger, design-conscious travelers.
• La Malagueta: beach access plus proximity to the port commands premium nightly rates.
• Pedregalejo: local beach atmosphere and seafood restaurants appeal to repeat visitors and families.

Which tourist areas in Malaga are becoming oversaturated with short-term rentals?

The three tourist areas in Malaga showing the clearest signs of oversaturation are Centro Histórico, Soho-Ensanche del Centro, and parts of La Malagueta closest to the port.

These areas have the highest density of active Airbnb listings in Malaga, with Centro Histórico alone accounting for a large share of the city's total short-term rental supply according to InsideAirbnb data.

The clearest sign of oversaturation in these Malaga neighborhoods is that average daily rates have flattened even as tourism numbers have grown, meaning new hosts are competing for the same guest pool rather than expanding it.

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 Malaga Are Best for Long-Term Rentals?

Which neighborhoods in Malaga have the strongest demand for long-term tenants?

The Malaga neighborhoods with the strongest long-term rental demand are Teatinos-Universidad (student and young professional hub), Carretera de Cádiz (large working population near the coast), Campanillas (tech park commuters), and Bailén-Miraflores (affordable option for young families).

In these high-demand Malaga neighborhoods, well-priced apartments typically rent within two to four weeks, and vacancy rates remain low throughout the year.

Each neighborhood attracts a distinct tenant profile:

• Teatinos-Universidad: university students and young academics seeking affordable housing near campus.
• Carretera de Cádiz: working families and professionals who want coastal access without premium prices.
• Campanillas: tech workers and engineers commuting to Parque Tecnológico de Andalucía.
• Bailén-Miraflores: young couples and first-time renters priced out of more central districts.

The key amenity driving demand in these neighborhoods is practical infrastructure: Teatinos has the university and hospital, Carretera de Cádiz offers metro access and beaches, Campanillas has direct tech park connections, and Bailén-Miraflores provides affordable shops and schools.

Finally, please note that we provide a very granular rental analysis in our property pack about Malaga.

What are the average long-term monthly rents by neighborhood in Malaga in 2026?

As of early 2026, monthly rents per square meter in Malaga range from around €13 in Campanillas and Teatinos to over €17 in Este district, with the outlier Martiricos-La Roca reaching nearly €24 due to new-build premiums.

In the most affordable Malaga neighborhoods like Campanillas and Ciudad Jardín, a typical 70-square-meter apartment rents for roughly €900 to €1,000 per month.

In mid-range neighborhoods like Carretera de Cádiz and Cruz de Humilladero, the same apartment would cost around €1,000 to €1,100 per month in Malaga.

In premium neighborhoods like Este and Centro, expect to pay €1,150 to €1,250 per month for a similar-sized apartment in Malaga.

You may want to check our latest analysis about the rents in Malaga here.

Which Are the Up-and-Coming Areas to Invest in Malaga?

Which neighborhoods in Malaga are gentrifying and attracting new investors in 2026?

As of early 2026, the Malaga neighborhoods showing the strongest gentrification signals are Bailén-Miraflores (rapid price catch-up from a low base), La Térmica-Pacífico-Sacaba (large-scale seafront redevelopment), and Martiricos-La Roca (new-build construction transforming a previously overlooked area).

These gentrifying Malaga neighborhoods have seen annual price appreciation well above the city average, with Bailén-Miraflores and Campanillas both posting double-digit gains in 2025 while more established areas grew more slowly.

Which areas in Malaga have major infrastructure projects planned that will boost prices?

The Malaga areas most likely to benefit from infrastructure projects are the western seafront corridor (La Térmica-Pacífico-Sacaba) and neighborhoods along the Metro Line 2 extension toward Hospital Civil.

The Metro de Málaga extension will connect previously car-dependent areas to the city center, while the La Térmica urbanization project includes 870 new homes, public spaces, and mixed-use development that will reshape the western coastline.

Historically, Malaga neighborhoods that gained new metro stations or major public investments have seen price increases of 10% to 20% above citywide averages within three to five years of project completion.

You'll find our latest property market analysis about Malaga 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 Malaga Should I Avoid as a Property Investor?

Which neighborhoods in Malaga with lots of problems I should avoid and why?

The Malaga neighborhoods that present the most challenges for investors are ultra-low-price micro-areas like Palma-Palmilla and certain pockets within Cruz de Humilladero, as well as trophy areas where entry prices crush potential returns.

Each problem area has distinct issues:

• Palma-Palmilla: extremely low prices (around €580/m²) signal high vacancy risk and difficult financing.
• La Térmica-Sacaba Beach (trophy segment): entry prices above €10,000/m² compress yields below 3%.
• La Malagueta-Monte Sancha (premium end): stunning location but returns depend entirely on continued appreciation.

For neighborhoods like Palma-Palmilla to become viable investment options in Malaga, they would need sustained public investment in infrastructure, safety improvements, and new commercial amenities to attract a broader tenant base.

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 Malaga.

Which areas in Malaga have stagnant or declining property prices as of 2026?

As of early 2026, the Malaga areas with the slowest price growth are Teatinos (only about 3% year-over-year), Carretera de Cádiz (around 4.7% year-over-year), and Centro (about 7.4% year-over-year), all lagging the citywide average of over 12%.

While none of these Malaga neighborhoods are actually declining, their growth rates of 3% to 7% feel like stagnation compared to the double-digit gains seen in emerging areas like Bailén-Miraflores and Campanillas.

The underlying causes of slower growth differ by area:

• Teatinos: already well-developed with limited new construction or transformation catalysts.
• Carretera de Cádiz: mature market where most upside has already been captured in recent years.
• Centro: high baseline prices and short-term rental regulations limit further rapid appreciation.

Which Areas in Malaga Have the Best Long-Term Appreciation Potential?

Which areas in Malaga have historically appreciated the most recently?

The Malaga areas that have appreciated the most over recent years are Bailén-Miraflores, Campanillas, Ciudad Jardín, and parts of Este district, all of which have outpaced the city average.

Here is how each area has performed:

• Bailén-Miraflores: among the highest year-over-year gains in 2025, benefiting from catch-up dynamics.
• Campanillas: strong double-digit growth driven by tech park expansion and new housing.
• Ciudad Jardín: affordable base prices allowed for outsized percentage gains as demand spread.
• Este district: consistent premium appreciation as wealthy buyers compete for limited coastal stock.

The main driver behind above-average appreciation in these Malaga neighborhoods has been the combination of constrained supply (limited new construction in desirable areas) and surging demand from both domestic buyers and foreign investors seeking lifestyle properties.

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 Malaga.

Which neighborhoods in Malaga are expected to see price growth in coming years?

The Malaga neighborhoods expected to see the strongest price growth in coming years are La Térmica-Pacífico-Sacaba, areas adjacent to the Metro Line 2 extension, Ciudad Jardín, and Bailén-Miraflores.

Projected growth varies by neighborhood:

• La Térmica-Pacífico-Sacaba: 8% to 12% annual growth as the major urbanization project completes.
• Metro Line 2 corridor: 6% to 10% uplift as new stations improve accessibility.
• Ciudad Jardín: 5% to 8% as yield-seeking investors continue discovering this affordable area.
• Bailén-Miraflores: 5% to 8% as gentrification momentum continues from a low base.

The single most important catalyst for future Malaga property price growth is the combination of infrastructure delivery (metro expansion, seafront redevelopment) and persistent housing undersupply relative to demand from both locals and international buyers.

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 Malaga?

Which areas in Malaga do local residents consider the most desirable to live?

Local Malaga residents consistently rank Este district (especially El Morlaco, Monte Sancha, and El Limonar), Pedregalejo, and Teatinos-Universidad as the most desirable places to live.

Each area is valued for different reasons:

• El Morlaco-Monte Sancha: prestigious hillside location with sea views and quiet, low-density streets.
• El Limonar: established family neighborhood with large homes, good schools, and mature gardens.
• Pedregalejo: authentic beach village atmosphere with local seafood restaurants and community feel.
• Teatinos-Universidad: practical urban living with the hospital, university, and modern amenities nearby.

These locally-preferred Malaga neighborhoods tend to attract established families, professionals, and long-term residents who prioritize quality of life over investment returns.

Local preferences in Malaga partially overlap with foreign investor targets (both value Este and Pedregalejo), but locals often prefer practical neighborhoods like Teatinos that foreigners tend to overlook in favor of beachfront trophy properties.

Which neighborhoods in Malaga have the best reputation among expat communities?

The Malaga neighborhoods with the best reputation among expats are La Malagueta, El Limonar, Pedregalejo, and the Monte Sancha hillside area within Este district.

Expats prefer these neighborhoods for specific reasons:

• La Malagueta: beach access, port proximity, and easy walk to restaurants and cultural sites.
• El Limonar: quiet, leafy streets with space for families and access to international schools.
• Pedregalejo: authentic local feel combined with beach lifestyle and a growing expat social scene.
• Monte Sancha: prestige address with panoramic views and privacy from tourist crowds.

The typical expat profile in these Malaga neighborhoods includes retired Northern Europeans, remote workers seeking lifestyle upgrades, and families relocating for quality of life and climate.

Which areas in Malaga do locals say are overhyped by foreign buyers?

The three Malaga areas that locals most often describe as overhyped by foreign buyers are La Malagueta-Monte Sancha, La Térmica-Sacaba Beach, and parts of Centro Histórico.

Locals cite specific reasons for each:

• La Malagueta-Monte Sancha: prices have risen so high that rental yields are minimal and resale depends on finding another wealthy buyer.
• La Térmica-Sacaba Beach: new-build premium feels excessive given that the neighborhood is still under construction.
• Centro Histórico: tourist crowds, noise, and short-term rental regulations make it less livable than it appears.

Foreign buyers typically value these areas for their "postcard appeal" (sea views, historic architecture, walkability), while locals tend to prioritize quieter streets, practical parking, and neighborhoods where everyday life is easier.

By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Malaga.

Which areas in Malaga are considered boring or undesirable by residents?

The Malaga areas that residents most often describe as boring or undesirable are Campanillas, Churriana, and Puerto de la Torre, all of which are more suburban and car-dependent.

Residents find these areas less appealing for specific reasons:

• Campanillas: feels disconnected from city life, with limited nightlife, dining, or cultural options.
• Churriana: airport proximity brings noise, and the area lacks a distinctive neighborhood identity.
• Puerto de la Torre: inland location means no beach access and fewer urban amenities.

However, these same "boring" Malaga neighborhoods often offer the best rental yields precisely because their lower prices attract practical tenants who prioritize affordability over lifestyle.

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
Idealista	Spain's largest property portal with transparent, repeatable price indices.	We used it to establish baseline asking prices per square meter by district. We also tracked year-over-year price changes to identify heating and cooling areas.
Tinsa	One of Spain's leading appraisal firms with a widely cited valuation index.	We used it to cross-check that late-2025 price acceleration was real, not just a listing artifact. We also referenced their 2026 outlook for forward expectations.
Cadena SER	Major Spanish news outlet citing named research studies with clear attribution.	We used it to identify specific micro-neighborhoods at price extremes. We treated these as spotlights for deeper investigation rather than blanket truths.
Grupo Tecnitasa	Long-standing Spanish valuation firm with recurring, comparable annual studies.	We used it to sanity-check top and bottom price extremes across Malaga. We treated it as a spotlight on extremes, not a full market map.
Bank of Spain	Spain's central bank with authoritative housing risk analysis.	We used it to frame the national risk backdrop affecting Malaga. We treated it as a macro guardrail around neighborhood-level signals.
AirDNA	Leading short-term rental analytics firm used by operators and investors globally.	We used it to estimate occupancy rates and average daily rates for Malaga. We cross-checked against public InsideAirbnb data where possible.
InsideAirbnb	Public, research-grade dataset used by academics and journalists to audit STR markets.	We used it as a transparency backstop for supply discussions. We checked listing density claims against this independent source.
Junta de Andalucía	Regional government and primary source for metro project scope and alignment.	We used it to identify corridors likely to benefit from improved connectivity. We anchored infrastructure-led upside calls with concrete project details.
Ayuntamiento de Málaga	Official municipal documentation on approved urban development plans.	We used it to quantify the La Térmica urbanization scale. We tied it to pricing premiums in adjacent micro-areas.
INE (National Statistics Institute)	Spain's official statistics office with clean baseline tourism demand data.	We used it as an external demand proxy for short-term rental performance. We avoided relying only on private analytics vendors.
Aena	State-controlled airport operator and source of record for passenger traffic.	We used it to explain why Malaga's demand is structurally supported. We treated it as a macro driver behind both STR and long-term expat demand.