Real estate investment in Málaga

Real estate investment in Malaga is emerging as an excellent way to make your money profitable. Aware of this potential, many national and foreign investors are betting on investing in the homes of this Andalusian city. Join them to have your own source of passive income.

A constantly growing economy and a powerful tourist attraction make the capital of the Costa del Sol the paradise of real estate investments. However, your real estate market can be intimidating and overwhelming. At Muppy we take care of paving the way for you to get the maximum profitability without complicating your life.

What is the real estate market like in Malaga?

The Malaga real estate park is a real gold mine for any investor. Truly, the exceptional socio-economic conditions of this coastal city serve as support for a demand that does not stop growing.

The real estate market in Malaga in figures

• The rental price in the Malaga capital does not know the decrease. Its last historical record was reached in October 2024, with 14.8€/m2.
• 34% of the real estate park is destined to the rental market. However, in some neighborhoods (such as Martiricos) this percentage reaches 53%.
• 10% of the rentals that are hired in Malaga are seasonal. The proliferation of tourist apartments increases the price of long-term rental by 31%.
• In 2024, Malaga was the province of Andalusia where rents rose the most (15.2€/m2 on average). That is, their prices in this city are 15% above the national average.
• Compared to 2023, the rents that were paid in 2024 experienced an increase of 11%. The increase is expected to be 7% by 2025.
• 85% of the apartments for rent in Malaga cost € 1,000 or more per month. If we talk about renting a room, its average price is around € 623.14 per month (47.34% more expensive than the national average).

Why is it a good idea to invest in housing in Malaga?

It is estimated that between 58,000 and 60,000 people live on rent in Malaga. After all, this capital has all the necessary incentives to attract a large number of profiles (tourists, professionals, students, etc.). That is why there are always people interested in moving to this city.

Most of those who want to live in Malaga opt for renting. This is due, on the one hand, to the need for temporary accommodation and, on the other, to the difficulty of accessing owned housing.

The supply of rental housing is not high enough to meet the demand. This is the main reason why rental prices have been rising non-stop for years.

The situation that we have just described explains in a schematic and simple way the convenience of investing in housing in Malaga. After all, this is a situation where both strong demand and high profitability are guaranteed.

Real estate management in Malaga. Discover your best option to invest

The fact that real estate investment in Malaga is a promising alternative does not mean that it is available to everyone. Moreover, the high competitiveness of the real estate market leads many investors to opt for professionalized management.

Have you thought about everything that a professional real estate manager offers you?

• Personalized advice: adapt the real estate investment options to your investor profile.
• Extensive experience and knowledge of how the Malaga real estate market works (opportunities, challenges, trends, etc.).
• Comprehensive management (maintenance, insurance, tenant selection, interior design, etc.).

In view of all the above, it is obvious that specialized management is a plus for any investor. Investing in an agile, comfortable, profitable and safe way is as easy as leaving your real estate investments in the hands of Muppy.

The best areas of Malaga to invest in housing

The Consul-Ciudad Universitaria-El Romeral

This area stands out for being one of the most profitable in Malaga. Thus, in the first quarter of 2025, the profitability of its rentals reached 4.9%. The fact of being a university area ensures a constant flow of student rentals. Consequently, the apartments take an average of only 3 months to rent.

The Union and the Paseo de los Tilos (Humilladero Cross)

This area offers yields of around 4%, which makes it the second most profitable area in the capital. In fact, the rent of their homes is 0.8% more expensive than that of the historic center. It is worth noting that this upward trend remains stable over time.

The Malagueta

The average rental price in La Malagueta is 14.8 €/m2 and its profitability reaches 3.3%. However, the strong point of this area is its proximity to the coast, which gives it a great potential for tourist rentals. Did you know that this type of rental quintuples the rent of residential rental?

The Tejar and Hacienda Bizcochero (Theaters)

El Tejar and Hacienda Bizcochero offer a yield of 3.9%. In October 2024, the average rental price in this area reached 13.67€/m2 (which is an increase of 7.30% compared to last year). The fact of being close to the university explains his success more than enough.

Historic center

Real estate investment in Malaga finds a safe value in the historical center of the capital. Its profitability may not be one of the highest (3.2%), but the rental price reaches € 16.10/m2. In addition, its privileged location makes it a real magnet for tourists.

Parque Ayala-Jardín de la Abadía-Huelín (Carretera de Cádiz)

Real estate investment in Malaga has found a reef on the Cádiz Highway. It is an emerging area where rental prices have risen by 13.3%. With some tenants willing to pay € 14.8 per square meter, their current profitability is 3.3%.

Making a profit with a real estate investment in Malaga is a piece of cake with Muppy. Trust in our comprehensive Property Management service and enjoy the highest profitability without having to worry about anything.

FAQs

How to calculate the profitability of a real estate investment in Malaga?

It is best to use the Return on Investment (ROI). It is calculated with the following formula: (return obtained – investment) ÷ investment x 100.

What percentage of savings should I have to invest in real estate in Malaga?

Experts advise to have a saving equivalent to 20% of the house price. With this "mattress" you will be able to cover the costs derived from the purchase and sale and any other extraordinary expenses.

What legal aspects should I take into account to invest in Malaga?

• Law 29/1994, of November 24, on Urban Leases (LAU).
• Royal Decree-Law 7/2019, on urgent measures in the field of housing and rental.
• Law 12/2023, of May 24, on the right to housing.
• Local regulations: General Urban Planning Plan (PGOU) of Malaga, the Technical Building Code (CTE) and municipal ordinances.

What are the additional expenses when buying a property in Malaga?

The expenses and taxes derived from the real estate purchase and sale are equivalent to 10% of the house price. In general, this percentage covers the payment of notary, land registry, appraisal and taxes (VAT/IAJD or ITP).