Malaga Housing Market Boom: Prices Soar, Foreign Buyers Fuel Demand

Malaga Housing Market Boom: Prices Soar, Foreign Buyers Fuel Demand

April 25, 2025

In Malaga province, the housing market is thriving despite skyrocketing prices, with foreign buyers playing a pivotal role in sustaining demand. According to the 2024 annual review by Spain’s property registrars, property prices in Malaga city surged by an astonishing 24.5%, outpacing expert predictions and making it one of Spain’s hottest real estate markets.

Key Trends in Malaga’s Property Market

• Price Surge: The average price per square meter in Malaga province climbed 10.8% to €2,750, while in Malaga city, it soared 24.5% to €2,980. Only Cuenca (26.9%) saw a higher increase among Spanish provincial capitals.
• Sales Growth: Housing sales in the province grew by 3.5%, driven entirely by the new-build market, which saw a remarkable 63.2% increase in transactions (10,777 deals). In contrast, second-hand home sales dropped by 10.9% (24,434 deals).
• Average Home Prices: The average price of homes sold in Malaga reached €298,593, the third highest in Spain, trailing only the Balearic Islands (€380,166) and Madrid (€339,805). This marks a 10% annual increase, pushing Malaga ahead of Guipúzcoa in national rankings.
• New Builds Dominate: New homes now account for over 30% of total sales, with prices averaging €3,010 per square meter compared to €2,633 for second-hand properties.

Foreign Buyers: A Driving Force

Foreign buyers remain a cornerstone of Malaga’s property market, making up 32.4% of purchases in 2024, slightly down from 2023. Only Alicante, Santa Cruz de Tenerife, and the Balearic Islands have higher foreign demand. Nationally, British buyers lead (8.64% of foreign purchases), followed by Germans (6.7%), Moroccans (5.7%), and others. Notably, 10.8% of foreign purchases were for properties over €500,000, with over half made by non-EU citizens, likely leveraging Spain’s golden visa program.

What’s Driving the Price Surge?

The sharp rise in average home prices isn’t just about higher square-meter costs. The sale of larger, newer, or better-located properties, particularly high-end homes in areas like Marbella, significantly boosts the average. The boom in new builds, which are pricier, further fuels this trend.

National Context

Across Spain, housing prices hit a record high of €2,086 per square meter in 2024, up 6.3% from the previous year. Malaga ranks among the priciest provinces, behind Guipúzcoa (€3,577), the Balearic Islands (€3,575), and Madrid (€3,527). Nationally, home sales rose 9.2% to 636,909, with mortgage signings up 13.4% to 435,328.

Affordability Challenges

Rising prices are straining affordability. The average monthly mortgage payment in Spain increased 4.5% to €738.20, consuming 32.4% of the average salary. In Malaga, part of Andalucía (33.6% salary-to-mortgage ratio), access to housing is becoming increasingly difficult, though the region fares better than the Balearic Islands (56.4%) or Madrid (39.6%).

Final Thoughts

Malaga’s real estate market shows no signs of cooling, fueled by robust foreign demand and a booming new-build sector. However, with prices climbing faster than expected, affordability concerns are growing. For now, Malaga remains a magnet for investors and homebuyers, but the question lingers: how long can this surge continue?