Are you thinking about buying a house in Malaga? You’re not alone. With its sun-drenched coastlines, rich culture, and growing property market, Malaga is one of the most attractive locations for homebuyers in Spain. Whether you’re looking for a holiday apartment, investment property, or permanent home, this guide will walk you through everything you need to know—based on real experience, local knowledge, and what buyers like you need to hear.
Let’s break down the journey step by step, so you can buy with clarity, confidence, and zero regrets.
1. Why Malaga Is a Prime Spot for Buying Property in Spain
Malaga has transformed from a laid-back coastal town into one of the most vibrant and cosmopolitan cities in Andalusia. You get the best of both worlds: rich Andalusian heritage and modern infrastructure.
The city’s international airport, excellent healthcare, diverse expat community, and Mediterranean lifestyle make it especially attractive. Plus, it’s still more affordable than neighboring Marbella or Barcelona, offering great value for money.
From the historic city center to new developments in areas like El Limonar or the seaside suburb of Pedregalejo, Malaga caters to every lifestyle and budget.
2. Understanding the Malaga Property Market in 2025
The Malaga property market continues to rise steadily, driven by high demand and limited new supply. Buyers like you are drawn to:
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Modern new-build homes close to the coast.
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Charming townhouses in historic districts.
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Villas with panoramic views just outside the city.
Even though prices have increased, you can still find hidden gems—if you know where to look.
If you’re considering investing, don’t miss these 7 things you need to know before buying a property on the Costa del Sol. They’ll help you avoid beginner mistakes and understand what’s unique about this market.
3. Where to Buy in Malaga: Top Neighborhoods and Surrounding Areas
Choosing the right area is key. Here’s a quick breakdown to help guide you:
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Centro Histórico: Ideal if you want culture, walkability, and charm. Think classic Andalusian architecture with balconies overlooking cobbled streets.
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El Limonar: Residential, upscale, and quiet—great for families or retirees.
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Pedregalejo & El Palo: Former fishing districts now popular with young professionals and creatives.
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Teatinos: Modern apartments, universities nearby, and more affordable prices.
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Huelin & Carretera de Cádiz: Closer to the coast, slightly more urban, and undergoing lots of renewal.
Want something quieter, yet close to the action? Consider buying in nearby towns like Estepona, one of the fastest-growing areas in the Costa del Sol. You’ll find luxury developments, relaxed living, and property options by the beach that rival any Mediterranean dream.
4. Buying a House in Malaga as a Foreigner: What You Need to Know
Yes, you can legally buy property in Spain as a non-resident, and the process is fairly straightforward if you do it right.
But don’t go in blind. Make sure to:
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Get a NIE number (foreigner tax ID).
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Hire an independent, English-speaking lawyer (not one recommended by the seller).
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Understand the timeline for the transaction and how off-plan purchases work.
If you’re buying off-plan, make sure you read about these 10 essential questions to ask before investing in a new development. They’ll help you protect your money and make smarter choices.
5. Budget, Hidden Costs, and Financial Considerations
The price tag isn’t the whole story. In Spain, you’ll also need to factor in:
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10% VAT (if buying a new build).
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7% transfer tax (for resale properties).
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1–2% legal, notary, and registration fees.
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Plusvalía and possibly mortgage-related costs.
A safe bet? Budget an additional 10–13% on top of the sale price.
Need more clarity? This guide breaks down the full cost of buying property in Andalusia so you know exactly what to expect.
6. Legal Steps and Common Pitfalls to Avoid
This is where many foreign buyers get stuck. Spanish property law isn’t complicated—but it is different.
Here’s what you need to do:
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Hire a trusted independent lawyer to check all documentation.
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Verify the property has no debts, embargoes, or legal issues.
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Get a bank guarantee if buying off-plan.
Avoid verbal promises and get everything in writing. That includes delivery dates, specifications, and extras. Read your contract carefully—or have someone do it for you. There should be no small print surprises.
7. New Developments vs. Resale Homes: What Suits You Best?
Buying a new build means:
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Modern finishes.
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Energy-efficient materials.
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Developer warranties.
Buying a resale means:
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Often better location (e.g., historic center).
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Ready-to-move-in (but sometimes with renovation needs).
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More room for price negotiation.
If you’re on a tighter budget, new builds offer great value. And if you’re looking to save, here are 7 ways to reduce your property costs in the Costa del Sol.
8. Lifestyle in Malaga: Living Between Mountains and Sea
Beyond property, what’s life like in Malaga? In a word: spectacular.
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300+ sunny days per year.
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Beaches, hiking trails, historic towns, and international schools.
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Easy travel connections via Malaga Airport.
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A vibrant cultural calendar, Michelin-starred restaurants, and a strong sense of community.
Whether you’re walking the streets of Soho district, shopping at Mercado de Atarazanas, or sailing from Malaga port, life here is about enjoying the moment.
9. Rental Yields and Investment Potential in Malaga
Looking to invest? Malaga is a rising star.
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Tourism is booming year-round.
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Long-term rental demand is strong from students, professionals, and expats.
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Short-term lets offer excellent yields if well managed.
Many of my clients rent their properties when they’re not using them and generate a healthy return—especially in neighborhoods close to the center or beach.
10. Final Advice for Buying a House in Malaga with Confidence
Buying a house in Malaga can be a dream come true—as long as you stay informed, ask the right questions, and work with professionals who genuinely care.
You don’t need to go it alone. Surround yourself with people who know the area, know the market, and are invested in your success—not just the sale.
If I’ve learned one thing over my years working with clients across the Costa del Sol, it’s this: real estate is about people. The goal isn’t just to buy a house—it’s to find the place where your life unfolds.
