Málaga and its surrounding province remain one of the key drivers of real estate growth in Spain. A mix of tourism appeal, foreign investment, and lifestyle changes has fueled the market, while also creating significant challenges around supply, affordability, and regulation.
## A Growing Market: Key Figures
As of June 2025, the average property price in the province has reached €3,775/m², representing a 15% increase year-on-year. Rental prices are also rising, with an average of €15.4/m² — up 7.7% over the past year. Property transactions are accelerating as well: during the first quarter of the year, sales of existing homes rose by 16%, while new build transactions increased by 34%.
This steady growth reflects strong demand from both residents and national and international investors.
## Supply Shortage and Price Pressure
One of the biggest challenges in Málaga’s real estate market is the lack of sufficient housing supply. Only a few municipalities along the Costa del Sol are building at the pace needed to meet current demand, creating upward pressure on prices — especially in the most desirable areas.
The popularity of short-term rentals has also reduced the availability of long-term housing. In response, Málaga city has implemented a three-year moratorium on new tourist rental licenses in an effort to rebalance the housing market and prioritize access for local residents.
## New Developments and Investment
Despite land availability and permitting constraints, new developments are booming across the region. Large-scale projects are being launched both in Málaga city and along the coast, increasingly focused on energy efficiency, sustainability, and quality of life.
Investors continue to see Málaga as a secure and profitable destination. The region’s combination of political stability, favorable climate, and consistent economic growth reinforces long-term confidence in the local market.
## Expanding Segments: Rentals, Luxury, and Sustainability
Long-term rentals are gaining traction as the short-term market becomes more regulated, presenting new opportunities for landlords and developers seeking stability. Meanwhile, the luxury property segment remains strong, with high-end buyers drawn to Marbella and other coastal areas.
There is also a clear shift toward more sustainable real estate projects that respond to new lifestyles: energy-efficient homes, remote work–friendly layouts, and communities designed with green spaces and integrated amenities.
## Outlook and Recommendations
For buyers, Málaga continues to offer a dynamic and competitive market, with opportunities particularly in well-located new developments. For investors, the region presents solid medium- to long-term potential in both rental income and capital appreciation.
Developers will need to stay responsive to regulatory changes and work closely with authorities to unlock land and streamline permitting. For residents, the development of balanced housing policies will be key to improving access and reducing price pressure.
## Conclusion
Málaga’s real estate market in 2025 is in a phase of both maturity and transformation. Demand remains high, but the future of the sector will depend on how well it balances growth, sustainability, and access to housing.