The first months of 2023 have revealed the thriving luxury real estate market in Málaga. This city has become an extremely attractive destination for high-level international buyers, driving solid and promising growth in this market. At Lucas Fox, we have witnessed a 6% increase in potential clients compared to the previous year.
Moreover, the data we have indicates that prices in prime areas of the city have experienced an annual increase of over 12%. These positive indicators confirm Málaga’s consolidation as an increasingly appealing destination for luxury real estate investments. In fact, according to a report by Hiscox España titled “Luxury Housing Market in Spain,” Málaga holds 34% of the total Spanish market for homes valued above 3 million euros.
Despite a 3.6% price increase in the eastern area and a 2.1% increase in the city center during the first period of 2023, buyer interest remains strong.
Málaga has seen notable improvements in infrastructure, transportation, economic growth, culture, technology, and services. These factors have contributed to making it a highly desired location for investors, second-home buyers, and families looking to establish permanent residency.
This allure attracts more high-level international buyers, who represent approximately 81% of total sales handled by Lucas Fox Málaga in the region and are crucial in driving the real estate sector and the local economy. Among these international buyers, notable groups include those from the United Kingdom (27%) and the Netherlands (24%), although there are also buyers from Switzerland, Ireland, Italy, Poland, Colombia, and other countries. Nearly half of them acquire second homes, followed by 30% seeking primary residences, and 24% interested in investment opportunities.
What do they find in Málaga? International luxury home buyers are drawn to villas with private gardens and pools in residential areas such as Pinares de San Antón, Pedregalejo, and Limonar, which offer attractive prices compared to other regions in the country. Additionally, sought-after areas include El Candado, beachfront apartments in La Malagueta, and buildings in the city center and Soho district.
Among the most demanded areas in Málaga, Málaga Este and the Centro Histórico stand out. Málaga Este stretches along the eastern coast of the city, from La Malagueta to El Candado, and is characterized by its stunning beaches, seaside restaurants, and relaxed atmosphere. This prime area boasts a wide variety of services and amenities, ranging from modern residential complexes to luxurious villas and waterfront apartments. On the other hand, the Centro Histórico combines the city’s rich cultural heritage with the vibrancy of modern life.
It’s important to highlight that prices in these prime areas have seen an annual increase of over 12% compared to the same period last year, according to Lucas Fox data. For example, prices in La Malagueta reach 4,843€/m2, in Limonar 4,274€/m2, and in the historic center 4,312€/m2, making these the highest-priced areas in the city. In recent years, the Nuevo Paseo Marítimo de Pacífico area has also joined this group, with projects such as Málaga Towers experiencing a quarterly increase of 2.3% and an average price of 4,560€/m2 in the area.
With its international prestige and projection, Málaga has become a highly attractive city for the luxury real estate market. In addition to its marina for luxury yachts at Muelle 1, capable of accommodating vessels up to 150 meters in length, the city has a development project for the Marina de San Andrés in the western area of Málaga, with capacity for over 500 boats up to 50 meters in length. These projects attract luxury boaters, increasing the city’s international visibility and stimulating the local economy.
Málaga also benefits from excellent transportation infrastructure, including a high-speed train and an international airport with connections to major cities worldwide. Furthermore, the city offers a peaceful and secure environment, a wide range of educational options including national and international schools, a rich gastronomy scene, and a mild climate with over 300 days of sunshine per year. From an economic perspective, the ongoing development of the Málaga Tech Park, with over 650 companies from 21 countries and nearly 25,000 employees, contributes to the growth and prosperity of the city.
In conclusion, these improvements, combined with economic and cultural growth and the unique characteristics of the city, are the driving forces behind the dynamism and prosperity of Málaga, the shining star of the Costa del Sol. With a positive outlook for the rest of the year, Málaga positions itself as a city with great international projection in the luxury real estate sector.