Properties in Malaga – Discover why the luxury real estate market in Malaga is so attractive for high-end buyers in Spain…
The first few months of 2023 have proven Malaga’s growing dynamism in the luxury real estate market. The city has become an increasingly attractive destination for high-end international buyers, driving solid and promising growth in this market. At Lucas Fox, we have seen a 6% increase in potential clients for exclusive properties in Malaga compared to a year ago.
Furthermore, our data reveals that prices in prime areas of the city have experienced an annual increase of more than 12%. These positive indicators confirm that Malaga is consolidating its position as an increasingly attractive destination for luxury real estate investments. In fact, according to a report by Hiscox Spain entitled “The Luxury Housing Market in Spain”, data shows that Malaga represents 34% of the Spanish market for properties valued at more than €3 million.
In Malaga, during the first period of 2023, although prices experienced an increase of 3.6% in the east of the city and 2.1% in the centre, this has not slowed buyers’ interest.
As a result of extensive infrastructure and communications improvements, Malaga has experienced a boom in its economy, culture, technology, and services. These factors have helped make it a desirable location for investors, second-home buyers and families looking to make Malaga their home.
All of this attracts more high-end foreign buyers, who account for approximately 81% of the total sales made by the Lucas Fox Malaga office in the region, therefore vital to boosting Malaga’s real estate sector and economy. Among its foreign buyers, those from the United Kingdom (27%) and the Netherlands (24%) predominate, although there are also buyers from Switzerland, Ireland, Italy, Poland and Colombia, among other countries. Almost half are buying second homes, followed by 30% of clients looking for first homes, and 24% are interested in investment opportunities.
What can they find in Malaga? International buyers of luxury properties in Malaga are attracted by villas with private gardens and swimming pools in residential areas such as Pinares de San Anton, Pedregalejo and Limonar, which are very attractive and at lower prices than in other places in Spain. In addition, areas such as El Candado, beachfront apartments in La Malagueta and buildings in the city centre and Soho are also in demand.
Among the most sought-after areas in Malaga, Malaga East and the Old Town stand out. Malaga East stretches along the east coast, from La Malagueta to El Candado, and is known for its spectacular beaches, beachfront restaurants and relaxed atmosphere. This prime area boasts a variety of services and facilities, from modern residential complexes to luxurious beachfront villas and apartments. The Old Town, meanwhile, combines the rich cultural heritage with the vibrancy of a modern city.
It is important to note that prices in these prime areas have experienced an annual increase of more than 12% compared to the same period last year, according to Lucas Fox data. For example, prices reach €4,843/m2 in La Malagueta, €4,843/m2 in Limonar and €4,312/m2 in the historic centre, being the highest in the city. In recent years, the area of Nuevo Paseo Marítimo de Pacífico, where the Málaga Towers development is located, among other projects, has joined this group, with a quarterly increase of 2.3%, and an average price in the area of €4,560/m2.
With its prestige and international standing, Malaga has become an attractive city for the luxury real estate market. In addition to its marina for luxury yachts at Muelle 1, which can accommodate boats up to 150 metres in length, the city is developing a project for the San Andres Marina in the west. This marina will be able to accommodate more than 500 boats of up to 50 metres in length. Both marina projects will attract luxury yachts, increasing the city’s international visibility and boosting the local economy.
Malaga also benefits from an excellent transport infrastructure, including a high-speed train and an international airport with flights to major cities. The city also offers a peaceful and safe environment, a wide range of educational opportunities, including national and international schools, delicious cuisine and a mild climate with more than 300 days of sunshine. From an economic point of view, the ongoing development of the Málaga Tech Park, with more than 650 companies from 21 countries and almost 25,000 workers, contributes to the city’s growth and prosperity.
In conclusion, these improvements, together with the economic and cultural growth and the city’s unique characteristics, are the main drivers behind the dynamism and prosperity of the capital of the Costa del Sol. With a positive outlook for the rest of the year, Malaga is well-positioned as a city with a promising international presence in the luxury real estate sector.