My name is Robert Zagata. I live in the hills above Malaga, in sunny Andalusia. I love the region, the city and the Andalusian lifestyle. I owe this joy of life to the investments I have made throughout my life. Working in the financial sector, I understood how to invest. The dominant element of my investment basket has always been real estate. They allowed me to make my dreams come true.
Today I will answer the question: why is it worth investing in Malaga?
Malaga is attractive all year round
Malaga has a great tourist attraction. Today, the Malaga area is not only established for summer tourists, but there are also tourists in all the year. Beyond its economic potential, Malaga offers an exceptional quality of life. With over 300 days of sunshine per year, beautiful beaches, and a wide range of leisure activities, it attracts people from all walks of life. The city’s rich history and cultural heritage, evident in its historic center and iconic landmarks such as the Alcazaba fortress and the Picasso Museum, further add to its charm. The popularity of Malaga as a tourist destination has led to a robust rental market. Many tourists prefer the convenience and comfort of staying in a private rental property rather than a hotel. Investing in properties such as apartments or villas in key areas of Malaga can provide a steady stream of rental income throughout the year. Additionally, the city’s climate ensures that the rental season extends beyond the typical summer months, making it an even more appealing investment opportunity. Also, not to forget, bank holidays & weeks like the Holy week in April and la Feria in Agust, will give you an extremely high return on investment. Most properties have their prices times 3 or even times 4 per night!
Malaga airport maintains connections with approximately 60 countries, that will allow you to travel to any European city. Its strategic location, with the Malaga-Costa del Sol Airport at only 12 minutes from Malaga center offering excellent connectivity to major European cities, ensures a constant flow of tourists. The city boasts excellent transportation networks, including a modern port (and a new port coming in front of Huelin) and an extensive highway system. Additionally, Malaga has become a cultural hub with the opening of numerous museums, art galleries, and entertainment venues. Such developments contribute to the overall desirability of the city, making it an enticing location for real estate investments.
Malaga – not only sun 320 days per year!
Malaga’s economy is growing very quickly and this is what has led it to position itself as one of the best Spanish cities to invest.
For many years the international press has reported that the capital of the Costa del Sol is an interesting city for investing in real estate.
This has led to an increase of capital investments, giving Malaga more attractiveness and positioning. Investing in the Malaga real estate sector you don’t have to wait many years, you will reap the fruits from the first year. According to statistics the return on investment is higher than in the rest of Spain.
Airbnb investment opportunities in Spain, August 2023:
| Location | Ocupancy | Income
(Euro / mth) |
| Barcelona | 89% | 4111 |
| Madrid | 79% | 2184 |
| Malaga | 79% | 2032 |
| Granada | 67% | 1651 |
| Marbella | 63% | 2487 |
| Cadiz | 63% | 1656 |
| Seville | 71% | 2010 |
| Alicante | 73% | 1842 |
| Bilbao | 68% | 2225 |
| Costa del Sol (Mijas) | 63% | 1673 |
| Cordoba | 52% | 1413 |
| Benidorm | 60% | 1260 |
That is why many foreigners invest in a second home in this area. Now, because of the pandemic and the explosion of remote working, this Andalusian province has become a magnet for digital nomads worldwide. Malaga city hall has made an enormous effort to try to make the city the “Silicon Valley of Europe”. And this is reaping its rewards with a growing entrepreneurial ecosystem in the city. This has had a direct impact on the rental market because of the arrival en masse of digital nomads. They are, on the whole, uninterested in buying property and at the same time have relatively high salaries and can pay higher rents as a result. Because of the size and availability of the workforce in the Malaga area now, a number of multinationals are choosing the city to set up new bases.
Vodafone, for example, has selected Malaga for its new European R&D&I centre of excellence, which will generate more than 600 highly qualified jobs. Likewise, Google has announced that it will set up a center of excellence for cybersecurity in the city, while Globant has also started operating in the area.
This consistent traffic of visitors throughout the whole year translates into a strong rental demand for investment properties, making it an attractive prospect for real estate investors like you, in addition to the fact that it is also a fast-growing destination for both national and international university students, has led to Malaga surpassing Spain’s two major cities, Madrid and Barcelona, in terms of the yields offered by rental properties. According to statistics from Fragua by Atlas Real Estate Analytics, in 2022, the rental yield for Malaga was 7.22% (up from 5.43% the previous year), well above that of Barcelona (5.29%) and Madrid (4.96%).
Between December 2021 and December 2022, the average rental price per square meter increased from 10 to 14 euros – an increase of 40.This shift has seen profitability in certain areas of the city centre soar up to 9.66% (the average is 7.04%). This is mostly down to rapid gentrification and an increase in short-break tourism, especially prior to the pandemic.
Conclusion: When it comes to investing in real estate, Malaga stands out as an exceptional choice. Its thriving tourism industry, strong rental market, increasing property values, robust infrastructure, and high quality of life make it an attractive destination for real estate investors. Whether you’re seeking a steady rental income or long-term capital appreciation, Malaga provides a favorable environment for both. By investing in property in this vibrant Spanish city, you can reap the benefits of a flourishing market while enjoying the many lifestyle advantages it has to offer.
Price comparison: Malaga and Spain
