Malaga, leader in home purchases by foreigners

Malaga is an attractive residential destination for many reasons (climate, coast, gastronomy…) for national and foreign buyers. In 2022 there were 6,160 second-hand property sales and purchases, 21.3% more than the previous year according to data from the Spanish Registrars.

Foreign investors have been gaining strength in recent years in our country and now account for 13.7% of all home purchases, 2.9% more than in 2021, while transactions carried out by nationals, who make up the majority, have fallen by almost 3%.

Who buys property in Spain? Mainly UK nationals, who account for 11% of all transactions, followed by buyers from Germany, France, Belgium, Morocco, Romania, the Netherlands and Italy. In absolute terms, the British have registered more than 9,000 purchases, 47% more than a year ago. All nationalities have considerably increased the number of transactions.

Malaga is the fourth Spanish province with the highest number of home purchases by foreigners, 33.4%, behind Alicante, Santa Cruz de Tenerife and the Balearic Islands. Specifically, the number of buyers of other nationalities has increased by more than 6%, with the British being the most interested in the region.

Attractive price for investors

Apart from the quality of life, foreign investors are interested in the price of housing in Spain, which is lower than in other European Union countries such as Paris, London or Berlin. The average price of housing in the Malaga capital in 2022 was 2,314 euros per metre, 6.6% higher than a year earlier, according to data from Registradores.

Likewise, the fact that a large number of foreigners buy their second homes in Spain, added to their high per capita income level, means that these homes are generally large properties of more than 100 m2. Growth has also been detected among purchases of more than 500,000 euros, at its highest level in the historical series.

To this must be added that the profitability that can be achieved with the investment in rental housing has been 6% in 2023, according to Inviertis. A report by the company details that there has been a 5% annual increase in the number of real estate investors who have opted for this formula, and a 12% increase among foreign investors. The study also indicates that in prime areas of the main cities, buyers of Latin American origin are leading the way.

Zonas prime de Málaga

The centre is the second most expensive district in the city to buy a property (after Este, with a large number of detached houses that raise the average price in the area). With a property value of 1,300 euros higher than the average for the city, it is also the one that has risen the most (almost 15%). The buyer of a property in this area will find a perfect combination of tradition and modernity, with its cobbled streets, lively squares and historic buildings. Homes by Gestilar offers for sale this exclusive, recently refurbished property in a unique location in Malaga’s central district.