The Costa del Sol continues to dazzle—not just with its sunny skies and Mediterranean charm, but with one of the hottest real estate markets in Spain. Malaga, the vibrant capital of the region, has just posted the second-highest increase in residential property prices across the country, marking a significant 16.1% year-on-year growth. Only Madrid has outpaced it, with a 17.9% increase.
This puts Malaga far ahead of Spain’s national average growth rate of 10.3%, further cementing its reputation as a magnet for both domestic and international property investors. In practical terms, the average price per square meter in Malaga city has now reached €2,757—almost €1,000 more than the Spanish national average.
With this leap, Malaga is now the fifth most expensive provincial capital in Spain, following the likes of San Sebastian (€4,455/m²), Madrid (€3,971/m²), Barcelona (€3,842/m²), and Palma de Mallorca (€3,085/m²). Even more telling is the momentum: in just the first quarter of 2025, housing prices in Malaga rose by 2.9%, nearly double the national quarterly average.
Beyond the city itself, the broader Malaga province also stands out. It has seen a 12.3% annual increase in property values—leading all mainland provinces and trailing only Santa Cruz de Tenerife (12.9%). Other coastal hubs like Valencia, Alicante, and Murcia also posted solid double-digit growth, but Malaga remains a standout performer.
This strong growth has elevated Malaga province to be one of the most expensive in Spain, with an average square meter price of €2,709. It now surpasses traditional heavyweights such as Vizcaya and even Barcelona in provincial rankings—a striking shift that underlines the Costa del Sol’s growing allure.
Of course, this upward trajectory hasn’t been mirrored uniformly across the country. While the south and east coasts thrive, provinces like Orense, Badajoz, Córdoba, and Burgos have recorded falling property prices—highlighting the regional disparities in economic dynamism and housing demand.
Interestingly, even as property prices climb, Malaga’s rental market is showing early signs of stabilization. After two years of double-digit rent increases, recent data suggests a cooling trend. This could reflect an evolving balance in supply and demand, especially in the urban core, where affordability is increasingly coming into focus.
According to Gregorio Abril, Regional Director for Andalucía and Extremadura at leading valuation firm Gesvalt, Malaga’s position as a real estate frontrunner remains unshaken. “The figures from the last quarter of our housing report confirm Malaga’s leadership in both sales and rental prices in the region,” he said. “This reaffirms its appeal to both buyers and investors.”
He also noted that high demand—especially along the coast—is far outpacing the current supply of new homes. “We expect Malaga’s property market to maintain a steady growth trajectory in 2025,” Abril added, emphasizing that access to housing and inventory shortages will continue to be pressing challenges.
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