Thinking of buying a home in Málaga province this year? Find out what you can expect in terms of property prices moving forward, and where the cheapest and most profitable neighbourhoods are.
Málaga province is one of the most popular parts of Spain for foreigners to move to and buy properties.
Consequently, to some extent at least, real estate is becoming increasingly expensive and many locals are even being priced out of certain areas.
In recent years, Málaga city has seen some of the largest property price increases in the entire country, with annual rises exceeding 14 percent in 2023 and reaching over 20 percent at particular times in 2024.
In fact, prices in Málaga have become one of the main drivers of rising prices across the southern Andalusia region in general.
Over the last few years, the average cost per square metre in the city has more than doubled, exceeding €4,000 in 2025, according to leading real estate companies.
The highest average price recorded in the province was €4,047 per square metre on December 31st 2025, Spain’s leading property portal Idealista has reported. This is 15.4 percent higher than the same time in 2024.
Málaga has now established itself as the most expensive Andalusian city to buy a home with an average of €3,643 per square metre.
For obvious reasons, areas closer to the coast, as well as central historic neighbourhoods, and towns with better transport links and services, have all experienced the highest prices increases.
Málaga city also remains one of the most expensive cities to buy a property in the whole of Spain, even though wages are considerably lower than in Madrid, Barcelona and other big cities.
READ ALSO: How much does it really cost to live in Spain’s Málaga?
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To understand what Málaga’s property market may do in the upcoming year, we have to look at the factors driving these price increases.
The first is that – just like in most of Spain – there’s a big disparity between supply and demand, and there are lot more people looking for properties than there are available on the market.
This imbalance has meant that homes that were considered mid-range a decade ago are now significantly beyond the reach of many local families, especially in the city of Málaga.
Tourism is another factor that has played a an important role in the property market. Both Málaga and the Costa del Sol have established themselves as top international destinations. This has meant they have attracted a lot of foreign investment, and a very high percentage of sales are made by non-resident buyers wanting to buy holiday homes. This drives prices up even further.
The province of Málaga, along with Alicante account for almost four out of every 10 purchases made by foreigners in the Spanish market, according to an analysis by Sonneil Homes, based on data from the Spanish Land Registry.
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As mentioned, these increases are not just experienced in Málaga capital, but across the province.
Marbella’s property market ended November 2025 with an average price of €5,485 per square metre, the highest level on record.
This makes Marbella’s prices more than double the national average.
Experts at Davo Law Offices, real estate lawyers in Málaga believe that the province will see continued popularity in 2026 and that price increases will continue to rise. They don’t see any signs of significant declines in the short term.
Málaga remains a top destination for property due to its international appeal and economic growth. Sustained demand, and limited supply will also mean that we won’t see any drop in prices soon.
Where to buy in Málaga in 2026?
For those who do want to buy in the upcoming year and looking for a good deal, there are still several areas which are seen as good for property investments. One of the areas with the greatest potential is Teatinos – El Cónsul – El Romeral in Málaga itself. Prices have increased significantly here with year-on-year rises in Teatinos reaching 25.5 percent by the end of 2025.
Another good area is Carretera de Cádiz, which is one of the most affordable districts in Málaga in terms of price per square metre. It also stands out for offering good rental returns.
The Cruz de Humilladero district is also worth buying a property in, with an average price of €3,528/m² in November 2025, as well as Bailén-Miraflores, where the average price is €3,123/m², representing a year-on-year increase of 29.2 percent.
Finally, the Churriana residential district is also a good option, where annual growth is 27.8 percent.
There is also a stark the contrast is between different areas, even within the same district, so it’s worth shopping around as much as you can. For example, it’s €6,050/m² in the the historic centre, while it’s only €2,928/m² in the Olletas area, still within the city centre itself.
The most expensive area is Este at €4,762 /m2 and the cheapest is Ciudad Jardín at €2,550 /m2.
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The good news is that the property experts have predicted a more moderate growth than seen in the last couple of years. This will mean that prices will continue to rise, but not as sharply as before.
Málaga is expected to see population growth as before too, increasing the demand, but we could see a drop in the number of non-resident foreigners buying properties if the government’s plans come to fruition.
Prime Minister Pedro Sánchez wants to levy a 100 percent tax on properties for non-EU, non-residents, such as those in the UK or the US, and if approved this will make homes double the price for them.
This could help ease some of the demand and ensure that non-residents aren’t driving up the prices as much as before, but it will still be seen a place for foreign investment.
