Málaga: a magnet for affluent high-end buyers

The first few months of 2023 confirm the growth dynamics of Málaga in the luxury real estate market. The city is becoming an increasingly attractive destination for high-end buyers, contributing to a sustainable and promising market development. At Lucas Fox, we have seen a 6% increase in the number of potential clients compared to last year.

In addition, our data shows that prices in the city's prestigious neighborhoods have increased by more than 12% year-on-year. These positive indicators confirm that Málaga is consolidating its position as an increasingly attractive destination for luxury real estate investment. In fact, according to Hiscox Spain's report entitled "The Luxury Housing Market in Spain", Málaga represents 34% of the Spanish real estate market for properties valued in excess of 3 million euros.

During the first quarter of 2023, property prices in Málaga increased by 3.6% in the east of the city and 2.1% in the center, but this has not dampened buyer interest. Thanks to significant improvements in infrastructure and connectivity, Málaga is experiencing an upturn in its economy, culture, technology and services. These factors contribute to the city's attractiveness to investors, secondary home buyers and families looking to make Málaga their home.

All of this attracts more buyers from the higher end of the segment, who represent approximately 81% of all sales at Lucas Fox's office in Málaga. Foreign buyers come mainly from the UK (27%) and the Netherlands (24%), but there are also buyers from Switzerland, Ireland, Italy, Poland and Colombia, among other countries. Almost half of them are buying secondary homes, 30% are looking for primary residences and 24% are interested in investment opportunities.

So what can foreign buyers find in Málaga? They are attracted to villas with private gardens and swimming pools in residential areas such as Pinares de San Anton, Pedregalejo and Limonar. Property prices in these areas are lower than in other parts of Spain.

Among the most sought-after neighborhoods in Málaga are East Málaga and the Old Town. East Málaga stretches along the east coast from La Malagueta to El Candado and is known for its magnificent beaches, beachfront restaurants and relaxed atmosphere. The area has a variety of services and facilities, from modern apartment complexes to luxury villas and beachfront apartments.

The Old Town combines a rich cultural heritage with the vibrancy of a modern city. It is important to note that property prices in these prestigious areas have increased by more than 12% compared to the same period last year, according to Lucas Fox. For example, prices reach 4,843 euros per square meter in La Malaguete, 4,843 euros per square meter in Limonara and 4,312 euros per square meter in the historic center, which is the highest price in the city. In recent years, the area of Nuevo Paseo Marítimo de Pacifico, where the Málaga Towers complex and other projects are located, has joined this group, with a quarterly increase of 2.3% and an average price of around 4,560 euros per square meter.

Málaga has become an attractive city for the luxury real estate market due to its prestige and international status. In addition to the luxury marina on Muelle 1, which can accommodate yachts up to 150 meters in length, the city is developing the San Andres marina in the west. This marina will be able to accommodate more than 500 yachts up to 50 meters in length. Both projects will attract luxury yachts, increasing the city's international visibility and boosting the local economy.

Málaga also has an excellent transportation infrastructure, including high-speed trains 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 temperate climate with over 300 days of sunshine.

In conclusion, all these improvements, together with the economic and cultural growth and the unique characteristics of the city, are key factors in the dynamics and prosperity of the capital of the Costa del Sol. With a positive outlook for the rest of the year, Málaga is firmly positioned as a city with a promising international presence in the luxury real estate market.