Malaga is currently attracting domestic and international investment like never before. In this article, you will find out why this area presents exceptional opportunities for real estate investors in 2026.
Noteworthy is Málaga TechPark (formerly PTA), which employs around 28,000 people. The arrival of technology centers run by giants such as Google, Vodafone, and Capgemini, together with strategic projects in semiconductors, attracts a constant flow of qualified talent and professionals with high purchasing power.
Malaga is the top city in Europe and third in the world for executives and digital nomads. Its privileged climate, cultural offerings, and reasonable cost of living make it a desirable place to live, boosting long-term rentals.
The abolition of wealth tax was recently announced in order to attract investors, especially foreign ones. This favorable environment gives it a competitive advantage within Europe.
You may be interested in: real estate investment on the Costa del Sol.
Malaga is among Spain's fastest-growing real estate markets, displaying a dynamism comparable only to Alicante and the Balearic Islands. Demand exceeds supply in many segments, leading to significant price increases.
Residential rentals attract professionals linked to the technology sector, digital nomads, and foreign families, while traditional rentals attract traditional tourists, along with those seeking "work and pleasure," and seasonal rentals are especially attractive in winter for northern Europeans and in summer for domestic tourists.
The main investors are British, French, German, and Swiss, followed by growing interest from Latin Americans, especially Argentinians. Many invest remotely, relying on local managers.
It offers stability and less operational management. It is driven by the influx of professionals with permanent or remote employment contracts. Gross profitability typically ranges between 4% and 5.5% per year, depending on the area and the condition of the property.
It can generate higher gross income, but with higher management costs. It is ideal for properties in the historic center. Returns can climb to 7% or more, but management fees must be deducted. It requires a specific municipal license, and some neighborhood associations restrict it.
The purchase of new homes attracts investors looking for lower initial renovation costs and greater energy efficiency. These properties are usually located in developments in expanding areas, offering a modern product that is in high demand among today's tenants and buyers.
You may be interested in: investing in tourist apartments.
The heart of the city is unbeatable for tourist rentals and for professionals who want to live in the cultural epicenter. Demand is constant and high.
Exclusive areas offering a high quality of life by the sea. They combine proximity to the city center with residential tranquility. Here, investment is geared toward a segment with high purchasing power, both for luxury vacation rentals and permanent residences.
Soho is an artistic and vibrant neighborhood, attractive for investments in commercial gastronomic premises. Pacífico stands out for its modernity, sea views, and connections. It attracts families and professionals, offering great potential for appreciation.
Expected returns vary depending on the type of investment. As a reference, long-term residential rentals have a gross annual return of between 4% and 5.5%, while for vacation rentals, the gross return can range from 5% to 7%.
Capital gains (revaluation) in high-demand areas can be a very significant component of total returns.
This is the base cost. In Malaga city, prices range from one-bedroom apartments for €120,000-140,000 in established areas to luxury properties exceeding €4,000/m² on the seafront.
They add between 11% and 14% to the purchase price. The ITP (transfer tax) for second-hand homes is 10% of the purchase price, and VAT (for new builds) is 10%. Notary and registration fees range from €1,200 to €1,600 for a property worth €100,000. The real estate agency commission is 2% to 5% (plus VAT).
They can range from a tune-up for €3,000 to comprehensive renovations. This is a crucial factor in maximizing rental or resale value.
A management company usually charges between 10% and 30% of the monthly rent, but takes care of all the administrative tasks.
The main tax is the 10% ITP (Transfer Tax) for second-hand properties or the 10% VAT for new builds. Subsequently, as the owner, you must pay the annual Property Tax (IBI) and garbage collection fees.
Vacation rentals require a specific license from Malaga City Council, and you must verify that the homeowners' association allows it. Rental income must be declared in your personal income tax return or in the Non-Resident Income Tax (IRNR).
The NIE (Foreign Identity Number) is essential for any transaction. A Spanish bank account is necessary for the purchase and to manage the property's income and expenses. Spanish banks require proof of the legal origin of the money in order to accept large transfers. It is advisable to have a local representative or agent if you do not reside in Spain.
Before searching, decide whether your goal is steady monthly income (residential rental), maximum profitability with more management (vacation rental), or medium-term appreciation (new construction or renovations). This will determine the area and type of property.
Visiting the city, walking through the neighborhoods, and viewing properties will give you a real sense of the area, the quality of the buildings, and the atmosphere that photos cannot convey.
Hire independent real estate advisory services with in-depth knowledge of the market, a specialized lawyer to review contracts, licenses, and tax issues, and a trusted administrative manager or rental management company.
Yes. The market is growing with very strong and diversified demand and a favorable economic and technological environment.
Historic Center and Soho for tourist/short-term rentals; La Malagueta and El Limonar for the premium segment; Pacífico for new construction and revaluation with quality of life.
Considering a property worth €120,000, you should have approximately €132,000–€136,000 available to cover the price plus taxes and purchase costs (an extra 11–14%), in addition to any initial renovation costs.
It can be very profitable in gross terms (up to 7% or more), but its profitability depends largely on efficient and professional management that controls operating costs and maximizes occupancy.
In the current context in Malaga, the strategy of buying to rent is very sound, given the shortage of rental properties and high demand. However, in areas undergoing clear appreciation, buying to renovate and sell (flipping) can also be very lucrative, although it involves more risk.
Malaga ranks among the top cities in Europe in terms of quality of life thanks to its climate, cultural offerings, gastronomy, safety, international connectivity (airport, high-speed rail), and a cost of living that is still affordable compared to other major European cities.
The traditional real estate investment model has changed. With Domoblock, you can access tokenized real estate assets starting at just €200, without complications and with total control over your investment.
Blockchain technology and real estate tokenization ensure clear, secure, and traceable processes, allowing you to invest with confidence in previously analyzed house flipping and building flipping projects. In addition, the available opportunities offer returns of over 10% and the possibility of recovering your capital within 8 to 12 months.
At Domoblock, we currently do not have any investment projects in Malaga, but we do offer real estate opportunities in other key cities in Spain:
Domoblock combines innovation, profitability, and accessibility so you can invest intelligently and seamlessly.
Investing in Malaga in 2026 is an opportunity to participate in a diversified and growing economy. Success will depend on a strategic choice of location and a realistic calculation of the figures, making it a destination to enjoy and to build a future legacy.
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Funded:
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Objective:
1.057.019,75 €
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