Malaga: Rising Real Estate Prices in 2025

The real estate market in Malaga continues to evolve in 2025, driven by both national and local factors. A detailed analysis of the current trends provides insights into what to expect from property prices in the near future.
Market Overview in 2025
In 2024, Malaga stood out as one of Spain’s most dynamic provinces in terms of rising real estate prices. According to Idealista, property prices increased by 21.5% over the year, while rental rates rose by 13.4%, significantly outpacing the inflation rate of 2.8%.
In early 2025, the pace of price growth has slowed. For example, Fotocasa predicts a modest 3.7% decline in property prices during the first quarter. However, experts remain optimistic about the long-term outlook, anticipating a recovery in growth during the second half of the year.
Forecast for 2025
Analysts estimate that property prices in Spain may increase by 4–10% in 2025, depending on the region. For instance, Caixabank and Bankinter forecast around a 4% rise, while BBVA Research predicts a 5.5–6% increase. The most significant price surge is expected in the new construction segment, which could see an increase of up to 15%.
Key Factors Influencing Malaga’s Real Estate Market
1. Supply and Demand
The shortage of new housing amid high demand remains the primary driver of rising prices, especially in the city center and upscale neighborhoods.
2. Foreign Investments
Malaga continues to attract foreign buyers, particularly in the premium segment, where demand for luxury apartments and villas remains consistently high.
3. Tourism Growth
The short-term rental market, focused on tourists, significantly impacts property prices, making the market less accessible to local residents.
Examples of Property Prices
As of early 2025, Malaga’s real estate market offers around 4,200 properties for sale. Prices vary widely, from €19,200 for small studios to several million euros for luxury villas.
The average price per square meter is approximately €2,500. In prestigious areas like La Caleta or El Limón, prices reach €4,000–€5,000 per square meter. For instance, a 100 sqm apartment in the city center is priced at about €350,000, while similar properties in suburban areas range from €250,000 to €300,000.
Recommendations for Buyers and Investors
• Market Analysis
Thoroughly research the current market trends, considering economic forecasts and local specifics before making a purchase.
• Focus on Promising Areas
Pay special attention to areas with developing infrastructure. These locations offer the potential for higher property value appreciation.
• Consider Legislative Factors
Keep track of possible changes in tax regulations and rental laws to avoid unforeseen expenses or restrictions.
Conclusion
The real estate market in Malaga remains an attractive option for both local and foreign buyers. Despite temporary fluctuations, the overall trend indicates continued price growth in 2025. For successful investments, it is essential to consider market specifics and monitor long-term trends.