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Property price rise in Malaga

Agent Commentary on Malaga’s Property Market Surge in 2025

The property market in Malaga is showing no signs of cooling down, and January 2025 has set a new benchmark for growth. According to Idealista, the price of second-hand flats in Malaga city has surged by 20.5% year-on-year, with the average price per square metre now standing at €3,237. That’s double the national average of €2,237 per square metre. Even when looking at Andalucía as a whole, where prices have risen by 10.2% to €2,293 per square metre, Malaga is far ahead of the curve.

Comparing Malaga to Other Cities

Malaga is now one of the most expensive places to buy property in Spain. Only Valencia (+23%, €2,849/m²) and Madrid (+21.8%, €5,104/m²) recorded higher percentage increases. Other key cities, like Alicante (+15.4%, €2,249/m²) and Palma (+15.3%, €4,523/m²), lag behind Malaga in growth, reinforcing its position as a hot real estate market.

Looking at Andalucía, the second-highest price increase after Malaga was in Granada, where used housing prices rose by 11.8%, reaching €2,292 per square metre. As it stands, Malaga ranks as the sixth most expensive provincial city in Spain, trailing San Sebastian, Madrid, Barcelona, Palma, and Bilbao.

Province vs. City Trends

It’s important to note that while Malaga city ranks third in Spain for price growth, Malaga province as a whole has recorded a lower increase, standing at 13.7% year-on-year. This places it fifth, tied with Las Palmas. This distinction highlights the stronger demand within Malaga city compared to the broader province.

Malaga’s Position in Spain’s Property Market

From a provincial perspective, Malaga is now the fourth most expensive province in Spain, with an average price per square metre of €3,522. The Balearic Islands lead at €4,700, followed by Madrid (€3,851) and Guipúzcoa (€3,761). Meanwhile, the most affordable provinces include Ciudad Real (€733), Cuenca (€829), and Jaén (€831).

Long-Term Price Growth

Fotocasa reports that Malaga’s property prices have risen by 15.9% over the past year, placing it among the highest in Spain. Compared to 2005, prices in Malaga have increased by 61%, a trend only seen in select areas like the Balearic Islands, Santa Cruz de Tenerife (+88%), A Coruña, and Alicante (+52%).

Investor Takeaway

Malaga remains one of Spain’s most lucrative property markets. With steady demand, a booming local economy, and increasing foreign interest, it’s an excellent time for investors to consider entering the market. Prices show strong long-term growth, and while competition is fierce, opportunities remain for strategic investments.

In summary:

• Malaga city property prices surged 20.5% in January 2025, reaching €3,237/m², double Spain’s national average.
• Malaga is the third fastest-growing city in Spain for property prices, behind only Valencia and Madrid.
• Malaga province saw a 13.7% increase, making it the fifth-fastest-growing province, tied with Las Palmas.
• Long-term growth: Malaga’s property prices are 61% higher than in 2005, making it one of the most lucrative real estate markets in Spain.
• Top four most expensive provinces: Balearic Islands (€4,700/m²), Madrid (€3,851/m²), Guipúzcoa (€3,761/m²), and Malaga (€3,522/m²).