Malaga city continues to evolve as one of Spain's most dynamic real estate markets. In terms of price, demand profiles, supply, and profitability, the city is showing trends that have a direct impact on investors, resident buyers, and industry professionals. Below is a breakdown of the main factors shaping the evolution of the real estate market in Malaga in 2026.

Table of Contents

Record prices and recent developments

Historical growth rates

The latest data shows that the average price of housing in Malaga remains high, although there are signs of adjustment after reaching historic highs:

In January 2026, the current average price per square meter is €3,632/m², reflecting a year-on-year increase of 12.2% compared to the previous year.
During 2025, historic figures above €3,600/m² were recorded, with sustained increases throughout the year.

Although the rate of increase may have moderated or even undergone slight corrections in some cases, values remain well above the national average, consolidating Malaga as a market with high demand and strong price pressure.

Differences by region and product

Premium areas vs. emerging areas

Neighborhoods such as Este and the Historic Center maintain the highest prices, exceeding €4,000+ per square meter.
More affordable areas (such as Ciudad Jardín or Puerto de la Torre) show more moderate prices, although with significant increases in percentage terms.

This pattern reflects the typical polarization of tense urban markets: central areas and prime coastal locations under pressure from domestic and international demand, compared to outlying areas with a better price/square meter ratio.

Demand and buyer profiles

Local demand and internal migration

Malaga city continues to enjoy strong demand from residents, driven by:

Local economic growth.
The city's appeal to young professionals.
Technological ecosystem and emerging sectors that attract national and international talent.

Pressure on demand for primary residences remains high, especially in the first-time buyer and mid-range housing segments.

Foreign investment and the prime market

The luxury housing segment has had a strong presence in the city and on the Costa del Sol:

The province of Malaga accounts for around 30% of all prime real estate in Spain, with a significant presence of international buyers.

This premium demand profile further drives up prices in the high end of the market and generates a very marked segmentation dynamic.

Profitability and investment appeal

Gross profitability in 2025

According to the latest market data:

The gross rental yield for residential properties in Malaga city stood at around 5.2%, with segments such as offices and commercial premises recording even higher percentages.

Although high prices somewhat compressed returns compared to previous years, these levels remain attractive compared to traditional financial assets.

Implications for investors

The combination of stable rental demand and price growth means that investing in housing remains attractive, albeit with lower margins than in secondary markets.
The long-stay segment, as opposed to short-term tourism, has gained relevance, especially with the consolidation of more permanent job profiles in Malaga.

Supply, construction, and new developments

New housing and construction

Supply remains a limiting factor:

Despite the push to build new homes, new construction is not keeping pace with strong demand, which is keeping pressure on prices.
An increase in new home construction is expected, but the growth still does not eliminate the supply deficit.

Urban planning, infrastructure transformation, and the growth of areas such as Teatinos are key factors in diversifying the residential offering.

Rental market and housing tensions

Rent stress

In line with national trends, rentals in large cities, including Malaga, continue to be a segment with high demand pressure:

Factors such as the shortage of affordable supply and contract turnover lead to continuous price increases.

Although there are plans to expand the affordable rental housing stock in the city, their impact will still be gradual.

Risks, challenges, and projections for 2026

Price adjustments

The market is showing signs of technical correction in some price metrics, although a sharp decline is not expected, but rather stabilization after years of strong growth.

More structured offer

Improving the supply of new housing and mobilizing land is essential to alleviate price pressure.
Regulatory pressure and municipal proposals to regulate market practices may impact supply and urban rents.

Mature real estate market with multiple vectors

The real estate market in Malaga city in 2026 is characterized by:

High price levels, although with signs of stabilization.
Differentiation marked by locations and segments.
Strong international demand and premium properties.
Still solid returns on investment, especially in rentals.
Persistent supply shortage, which keeps pressure on the market.

For industry professionals, understanding these trends is essential to providing strategic advice to buyers, investors, and developers, as well as anticipating regulatory changes and the dynamics of supply, demand, and profitability in the short and medium term.

Malaga has all the elements that define a high-value real estate destination today: exceptional climate, outstanding quality of life, and a residential market in full consolidation. These factors position it as one of the most solid and attractive capitals for real estate investment in southern Europe.

If you are considering purchasing a property in Malaga, at Ayre Estates we offer you a carefully selected range of exclusive assets. We manage off-market opportunities that are not publicly advertised and are reserved for clients who value discretion, confidentiality, and preferential access to unique assets. Our team of specialists will accompany you with the utmost professionalism, transparency, and strategic vision at every stage of the process of buying or renting your home.

We invite you to contact us to learn more about the opportunities offered by the Malaga real estate market and discover how your next investment can become a smart financial decision.

News

Real estate trends in Malaga city (2026)