Thinking about investing in property in Malaga? This southern Spanish city is in a period of exceptional economic growth, making it one of the most attractive destinations for real estate investment in Europe. With an enviable climate, rich culture, local warmth and a constantly developing infrastructure thanks to private and governmental investment, this city offers numerous opportunities for international investors in a wide variety of modalities. Discover below five reasons why it is worth investing in property in Malaga today.
Quality of life unmatched internationally
What makes this city in Costa Del Sol so attractive for those looking for quality of life? Among Spanish residents, as well as international tourists and investors, Malaga is renowned for its incredible climate and Mediterranean charm, as well as for its rich history and culture and wide range of cultural and leisure activities:
- Cultural, artistic and historical richness: With more than 20 museums inaugurated in the last ten years, including the Picasso Museum, the Carmen Thyssen Museum and the Contemporary Art Center, the city offers a diverse and enriching cultural experience. In addition, landmarks such as Calle Larios and Plaza de la Constitución provide a lively and vibrant atmosphere, where you can enjoy street art, live music and a lively gastronomic scene. Malaga is a city that breathes history in every corner. From the majestic Moorish Alcazaba to the imposing Renaissance Cathedral, the Roman Theater and Gibralfaro Castle, the city offers a fascinating journey through the centuries. To walk through its streets is to immerse oneself in a rich and diverse past that has left its mark on its architecture, culture and identity.
- Mediterranean lifestyle: Malaga’s mild and sunny climate is just the beginning of its attractive Mediterranean lifestyle. Here you can relax in front of the best beaches of the Mediterranean Sea and even go hiking in the surrounding mountains, the city offers endless opportunities to enjoy nature and the outdoors. In addition, its geographical location allows easy access to other cities and tourist destinations in Andalusia.
- Unique gastronomy Spain: Malaga is a paradise for lovers of good food. With a rich culinary tradition that fuses Arabic, Mediterranean and Andalusian influences, the city offers a delicious variety of unique dishes and flavors. From the famous sardine skewers at the beach bars to the exquisite creative dishes at renowned restaurants such as La Cosmopolita, Malaga’s gastronomy delights the senses and satisfies the most demanding palates.
- Quality of life recognized by experts: According to the Expat City Ranking 2023, Malaga has been rated as the best city in the world to live in for expatriates. The high quality of life, the pleasant climate, the exceptional natural environment and the ease of making friends are just some of the reasons why Malaga has earned this distinction. In addition, the city offers a wide range of health, education, leisure and cultural services that ensure a rewarding and enriching life experience for its residents.
Panoramic views of Malaga, Spain.
Major economic development in Malaga with private investment and local government support.
Local government support has been critical to economic development and attracting investment. In Malaga, the City Council and other entities such as PROMALAGA are committed to attracting productive investment to the city and supporting local economic development. This is reflected in initiatives such as the Strategic Plan for Technological Innovation and the investment attraction area, which offer a wide range of services to facilitate the establishment of companies and the attraction of investors.
In this regard, Malaga has become an important communications hub in southern Spain thanks to the expansion and modernization of its road network, the construction of new highways and the expansion of the public transport system, which includes metro and bus lines that efficiently connect the province’s different neighborhoods and municipalities. This improved mobility has facilitated access to the city and boosted tourism and local commerce.
Investments have also been made in port infrastructure, especially in the Port of Malaga, which has been modernized and expanded to accommodate a greater volume of maritime traffic and become an important logistics and cruise ship center in the Mediterranean . This expansion has generated employment opportunities and boosted the local economy.
Services, communication and education in constant growth.
With an international airport connected to the entire world, its good transport connections and its growing innovation ecosystem in the Malaga TechPark, the city has become a business and technology center of reference in Europe. While technological development is very important for the city, the government has not neglected its sustainable development goals, and initiatives are currently being implemented to promote innovation and sustainable economic development.
A central point in the growth of this city is the constant care and expansion in aspects such as services, communication and education. With the impulse of both public and private investment, the city has achieved important advances in these areas, which has contributed significantly to the integral development of the community.
Can you imagine forgetting about having to maintain a car? This is a reality that is getting closer every day in the city. The current expansion of the public transportation network has facilitated access and movement in the city through subway networks, buses, cabs and tourist routes.
In the educational field, Malaga has a solid offer of educational institutions ranging from early childhood education to higher education. The city is home to numerous prestigious schools, colleges and universities, such as the Brithis School of Málaga, as well as San José and Laude San Pedro International College, which offer high-quality academic programs in a wide variety of disciplines. In addition, initiatives have been carried out to promote continuous training and lifelong learning, which has contributed to improving employment opportunities and the professional development of citizens.
4. Boosting the real estate industry in Malaga thanks to its tourist, commercial and technological development.
According to studies carried out by Analistas Económicos de Andalucía, part of Unicaja, Malaga’s economy is thriving. The city leads in economic growth compared to other cities in Andalusia. This positive trend has led some to call Malaga an oasis, in contrast to the economic difficulties in Spain and Europe.
Malaga’s economic success is attributed to three main factors. Firstly, tourism has played a crucial role, with an all-time record of 14 million visitors last year and tourism revenues reaching 19,137 million euros. Secondly, exports have also contributed significantly, reaching 3,222 million euros in 2023, led by the agri-food sector and with France, Italy and Portugal as the main markets. Finally, technological growth has been remarkable, with the attraction and creation of companies in Malaga’s technology park, including the installation of 72 international companies in the last four years, 39 of which are linked to the technology sector, and the inauguration of Google’s cybersecurity center at the end of last year.
Marein Natura. Luxury residential project in Malaga, Spain.
This has created a growing demand for housing in Malaga, which in turn has generated an active and attractive real estate market for investors from around the world. Malaga has experienced a strong increase in sales and purchases in recent years, making it one of the provinces with the highest real estate activity in Spain. Currently and according to data from idealista, the average price per square meter (m²) in the city of Malaga is valued at 3,143 euros, compared to April 2014 with a value per m² of 1,575 euros, and with a current annual variation of +10.3%.
This has led the city’s real estate market to offer a wide variety of high quality projects, both new and second hand, which attract investors looking for long-term profitability opportunities. Not only because of its modern and attractive architecture, but also because of its solid and durable construction that guarantees the satisfaction and safety of the residents.
5. Versatility and profitability in the different types of real estate investment.
From residential housing to commercial and tourism projects, Malaga offers a wide range of real estate investment opportunities. Whether buying a home as a permanent residence, as a second home or for rental purposes, the city offers options for all investor profiles. In the particular case of investments in residential housing, you will find cases such as the strategies of flipping, which consists of buying a property in order to renovate it and sell it at a higher price in a short period of time. In addition, investors also have the option acquiring a property for temporary or permanent lease. For international investors, This means that they can occupy their property for a period of time, and while they are back in their home country, rent it out for a return. As you can see, investors can choose among these options according to their preferences and risk tolerance.
The growing demand for rentals in the city, driven by tourism and the influx of expatriates, offers an attractive opportunity for those seeking long-term passive income. In addition, the strategy of investing in the capital gain of the area allows for potential returns as the value of the property increases over time, benefiting from the continued development and growth of Malaga as a tourist and economic destination.
Are you ready to explore new investments beyond your borders? Remember that in Nolab we have a network of experts and allies capable of accompanying you throughout your purchase process in Malaga and other Spanish cities. Contact us and start planning your future today.
