Málaga is a popular resort destination and one of the best places to live and invest in Spain. This beautiful Andalusian city is on the picturesque Mediterranean coast of the Costa del Sol. There is a huge variety of sandy beaches and excellent infrastructure for sea recreation. Moreover, Málaga has about 320 sunny days a year. More than 4 million tourists come here every year.
The city has a rich cultural and historical heritage. It is home to many museums, galleries, theatres, and architectural monuments. These include the Museo Picasso (the famous artist Pablo Picasso was born here), the Carmen Thyssen Museum, which displays masterpieces of Spanish artists of the 19th and early 20th centuries, the Alcazaba fortress, and other attractions. Málaga hosts several major festivals, the most famous of which is the Málaga Film Festival, known internationally.
Property prices in Málaga are rising steadily. In Q1 2023 alone, they increased by 2.1–3.6%. The city’s infrastructure is well developed. It has international schools, shopping malls, sports facilities, and other amenities making it an attractive place to live and invest. The airport is a 10-minute drive away. The rail service is provided by high-speed trains. For example, the capital of Spain, Madrid, can be reached in just 2.5 hours. This makes Málaga an excellent option to invest in real estate.
Content:
- Málaga’s investment appeal
- Best neighbourhoods of Málaga to invest in 2023
- We will help you buy property in Spain
Málaga’s investment appeal
Today, Málaga is considered one of the best cities to purchase luxury real estate in Spain. Popular neighbourhoods among investors are Pinares de San Antón, Pedregalejo, and El Limonar, where you can buy high-end villas with private gardens and swimming pools. The El Candado community, seafront apartments in La Malagueta, and properties in the city centre and in Soho are also in demand.
As of August 2023, the average price per 1 m² in Málaga was €2,480. The highest asking price of €3,155 per 1 m² was recorded in Centro, while the lowest was in Ciudad Jardín, Parque del Sur, and San José. It amounted to €1,741 per 1 m².
Housing prices in prestigious neighbourhoods are growing annually by more than 12%. In La Malagueta, they reach €4,843/m², in El Limonar, €4,843/m², and in the historic centre, €4,312/m², which is the city’s highest figure. In Pacífico, where Málaga Towers, a highly sought-after development project in Spain, is located, the cost of housing is growing by 2.3% every quarter, and the average cost of 1 m² is €4,560.
Having your own real estate on the Costa del Sol is not only a guarantee of steady rental income, but also the opportunity to resell the property at a higher price a few years after its acquisition. This is facilitated by:
- The region’s high attractiveness among tourists and expats;
- Well-developed infrastructure;
- Stable price growth.
The average rental yield in Málaga is 7.22% per annum, which is higher than in Barcelona (5.29%) and Madrid (5.96%). With an 88% occupancy rate, the owner of a 2-bedroom apartment can expect a profit of €38,600 per year.
Today, Málaga is one of the main centres of residential property sales in Spain, accounting for 34% of the country’s housing market. New infrastructure projects appear here regularly. For example, the San Andrés Marina project is currently under development. Once complete, the marina will be able to accommodate more than 500 yachts up to 50 m in length. The local technology park hosts over 650 companies from 21 countries and employs about 25,000 people.
Best neighbourhoods of Málaga to invest in 2023
When considering purchasing a villa or apartment in Spain, it is important to decide on the location of your future property. Here are the top 5 most popular places to buy a home in Málaga:
- Centro is a historic centre with magnificent architecture;
- La Malagueta is the city’s tourist and commercial heart;
- Soho is a cultural quarter with museums and art galleries;
- Carretera de Cádiz is a quiet district near the beach and sea;
- Perchel Sur is a neighbourhood in the southern part of the city with good transport accessibility and well-developed infrastructure for living.
The most popular type of property in the historic centre is 3-bedroom apartments. Their average cost is €700,000. The annual revenue from short-term rentals is €59,000, which is equivalent to 8.45% per annum. In La Malagueta, the most in demand are 2-bedroom apartments, whose average price is €645,000. The annual rental revenue will be €56,000, or 8.71% per annum.
In Soho, the best investment option is a 2-bedroom apartment. This type of property costs an average of €490,000, and the return on investment is 9.9%. The annual revenue will be €48,500.
In Carretera de Cádiz, the most preferred option is a 2-bedroom apartment. It will cost you €350,000 and generate an average annual revenue of €35,000 with a 10% return on investment. In Perchel Sur, 1-bedroom apartments are the most in demand. The average cost of this type of housing is €276,000. The return on investment is 11.24%, and the annual rental revenue is €31,000.
We will help you buy property in Spain
Málaga is very popular among tourists and buyers wishing to relocate. Here you can enjoy beautiful beaches, gourmet food, and a multicultural, friendly atmosphere. On our aggregator website, you can use convenient filters to browse real estate in Málaga by price, location, and area. Start your search for your ideal house in Spain now. For your convenience, prices are shown in dollars and euros.