From visitor to investor: buying property in Malaga, Spain
Malaga, a gem on Andalusia's coast, is worth considering for property investment. Explore tips and the latest Spanish mortgage rates.
When choosing the city to buy property in, consider what makes it better than your current location. Are there large trees enhancing the streetscapes? Is the lighting designed to set the mood? Are there clear signs and well-placed urban furniture for people-watching? These elements significantly improve a city's appeal.
Malaga checks all these boxes, making property investment here even more attractive for relocation or year-round rental. With plenty of sunshine every season, the city's appeal is undeniable. With more favorable interest rates, transitioning from a visitor to an investor could be the perfect move.
Malaga: a top choice for second homes and digital nomads
According to the National Statistics Institute, from 2011 to 2020, nearly 40% of new homes in Malaga were designed as second residences. It's not just the climate or the laid-back lifestyle that draws people in; it's the overall quality of life that transforms visitors into residents.
With tourism booming, Malaga offers rental opportunities, particularly near beaches and the city center, where rental demand is increasing. Investing in property here provides financial returns and a lifestyle known for its leisurely pace, rich history, and exquisite cuisine.
Why it works?
It’s well connected by two international airports (Malaga and Gibraltar) that accommodate low-cost and transcontinental flights
With over 300 days of sunshine per year, stunning beaches, and a wide range of leisure activities, Malaga boosts endorphin levels
Companies like Google, Vodafone, and Siemens have recognized Malaga’s potential for growth and innovation
The healthcare system is ranked among the best in the world and adds value to the city’s living standards
As a touristic hub that draws visitors worldwide, Malaga is a smart choice for rental investment
How much does it cost to buy a property in Malaga?
As in much of Spain, property prices in Malaga are generally more affordable than in many US, UK, or German cities.
As of March 2024, the average property price in Malaga reached €2,841 per square meter, reflecting a 17.98% increase from March 2023.
The Centro area featured the highest prices, at €3,590 per square meter, whereas the San José area offered the most affordable options, with an average price of €1,816 per square meter.
If making Malaga your own, is an exciting thought, don’t forget that a mortgage can extend your purchasing power and make property investment even more accessible.
Average interest rates in March saw a slight drop from February's figures
In March, the average interest rate in Spain continued to drop to 4.25%, a slight reduction from the previous month's 4.27%. This marks a continued decline from 4.91% in January 2024.
Since the beginning of the year, Sabadell has made the most competitive offers. This trend persisted into March when Sabadell presented the best offer among all banks in Spain: 3.25%.
This was also the best average mortgage rate in our dataset for the month, a slight increase from February's rate of 3.05%. Keeping up with these changes is key to effective negotiation, and that's where Homevest steps in to help you secure the best deal.