🏠 Recent evolution of property prices in Málaga
- In August 2025, the average price in the province of Málaga reached €3,842/m², with a year-on-year increase of 13.8%. This is 42% above the national average, confirming the city’s appeal as both a residential and investment destination (idealista.com).
- During the first quarter of 2025, sales prices rose by 10.6%, reaching an average of €3,046/m². New-build housing surged by 20.3% in the quarter, while second-hand homes increased by 5.1% (cadenaser.com).
🔝 Record highs
- According to Fotocasa, in July 2025 property prices in Málaga city reached €4,145/m², which is 49% higher than at the peak of the 2007 housing bubble (fotocasa.es).
- Málaga is now the most expensive province in Andalusia, and one of the most overheated markets in Spain (vidaeconomica.com).
📈 Are prices still rising?
- Although year-on-year growth remains high — above 10% during the first half of 2025 — there are early signs of a slight moderation in some areas (fotocasa.es).
- Nationally, house prices rose by 12.2% year-on-year in the first quarter of 2025, confirming the strength of the wider Spanish market (es.wikipedia.org).
📌 Wider context
- In Spain as a whole, the average price of free housing reached €2,093.5/m² in the second quarter of 2025, up 10.4% year-on-year, the highest level in 17 years (elpais.com).
- The lack of housing supply, combined with solid domestic and international demand, is the main driver of these increases. Only about 120,000 new homes are being built in 2025, compared with the 600,000 needed according to estimates (elpais.com).
- The boom in short-term holiday rentals is also pushing prices higher. It is estimated that more than 30% of rent increases in Málaga are due to this phenomenon (elpais.com).
✅ Conclusion for Málaga
- Yes, property prices in Málaga are still rising in 2025.
- While the upward trend remains strong, there are hints of a gradual slowdown, especially in the most over-heated areas.
- With demand still far outstripping supply, the market remains firmly on an upward trajectory.
📊 Key figures
| Indicator | Value / Variation |
|---|---|
| Málaga average price (2025) | ≈ €3,800–4,150/m² (depending on source) |
| Year-on-year increase | 13–22% (depending on quarter or source) |
| Vs national average | 42–53% higher |
| National forecast 2025 | +8–9% by year-end for new housing (elpais.com) |
⚠️ Challenges
Affordability is a growing issue, especially for younger households.
Greater public or social housing supply is needed to ease pressure.
Government measures, such as restrictions on holiday lets or rent control rules, will play a key role in stabilising the market (huffingtonpost.es).
