Malaga – with a population of almost 600,000 – has been attracting the interest of foreigners for years and has become one of the most highly rated cities in Spain. It is located on the Costa del Sol and has an ideal climate that appeals to tourists. In addition, its artistic, cultural and historical heritage has made it one of the best places to live in the country.
As a result, many new developments are trying to meet the growing demand. Because of this, the cost of living in the city has become more expensive. According to the latest idealista price report, the average selling price in Malaga in June 2023 is €2,516/m2. For renting, the figures are €12.4/m2.
In this post, you'll discover the best areas to live in Malaga, the average property prices for sale and rent in the best neighbourhoods of Malaga.
Soho
Soho, located between the port and the Alameda Principal, went from being a rundown area to the epicentre of regeneration and avant-garde in Malaga. This fascinating neighbourhood is now a trendy residential area, thanks to its vibrant, artsy atmosphere, offering a perfect blend of tradition and modernity.
The variety of culinary offerings in the area is just as varied, with cafés-cum-galleries and restaurants serving everything from Moroccan to Japanese. Soho has undoubtedly become one of the most attractive neighbourhoods to live in Malaga. Therefore, housing prices are relatively high, reaching €4,009/m2 for houses for sale and €15.8/m2 for the average rent.
Find flats and houses for sale in Soho and properties for rent.
El Palo and Pedregalejo
El Palo and Pedregalejo are two charming seaside neighbourhoods in the east of Malaga and are ideal for those looking for a quiet home in a lively city. Their streets radiate a serene atmosphere, a far cry from the city centre's frenetic pace. Here, an eclectic mix of locals and foreigners make up a diverse yet welcoming neighbourhood where you will constantly find new reasons to love Malaga.
Pedregalejo and El Palo offer the best of both worlds: tranquil seaside living and the convenience of having all the necessary services within easy reach. Shops, health centres, banks and a lively food scene, not to mention transport links to the city centre, make these neighbourhoods ideal places to live. These neighbourhoods have a large expat population, which adds to their cosmopolitan feel. The average price of property for sale is €2,687/m2, and the average rental price is €13.9/m2.
Find flats and houses for sale in El Palo and properties for rent; and properties for sale in Pedregalejo and for rent.
El Limonar
El Limonar is another of Malaga's best neighbourhoods. Strategically located between La Malagueta and Pedregalejo, close to the majestic Gribalfaro mountain and nestled in the Eastern District, El Limonar has become the preferred choice for the upper-middle classes to settle. This exclusive corner is characterised by a wealth of new developments, which further enhance its charm. According to the latest idealista price report, the average price of houses for sale is €4,279/m2, while the average rental price is €13.9/m2.
The Paseo del Limonar, the heart of the neighbourhood, is home to the exclusive houses that define this area's identity. Detached houses with gardens and swimming pools dominate the residential landscape. Despite its tranquillity, El Limonar is close to the city centre and the beach and has excellent public transport links.
Find flats and houses for sale in El Limonar and properties for rent.
La Malagueta
This area is a perfect choice for those looking to enjoy a quiet family atmosphere away from the crowded centre but with the advantage of having everything they need for day-to-day life within easy reach. The real estate on offer is diverse, although prices are somewhat higher than average, in keeping with the high quality of life the neighbourhood offers. With an average of €5,132/m2 for property for sale and €13.9/m2 for rent, it is a worthwhile investment for those who wish to enjoy the best of the Costa del Sol.
Find flats and houses for sale in La Malagueta and properties for rent.
Teatinos
Teatinos is undoubtedly one of the most thriving neighbourhoods of Malaga, recognised as an ideal area for students and young families. Close to the university and undergoing constant growth and development, Teatinos combines modern architecture and a lively atmosphere with tranquil green spaces and sports facilities. Despite its distance from the centre, the neighbourhood is full of life and services, including quick access to the Hospital Universitario Virgen de la Victoria and the Parque Tecnológico de Andalucía.
Teatinos is not limited to academics and sports, it also boasts a vibrant food and drink scene. This area has become a culinary benchmark in the city, with a wide variety of restaurants and bars catering to a range of tastes, although usually for a younger crowd. And for those considering making Teatinos their home, the average prices of properties for sale and rent are €2,787/m2 and €11.9/m2, respectively, making it a great option for those looking for a modern and lively alternative to life in the centre of Malaga.
Find flats and houses for sale in Teatinos and properties for rent.
City Centre
With its lively urban life and rich cultural offer, Malaga's city centre is considered one of the best areas to live. This area is home to Malaga's main tourist attractions, including the Cathedral, the Roman Theatre and the Alcazaba, making it the busiest and most popular area for locals and tourists alike.
The average prices of properties for sale vary according to the area in the centre, ranging from €2,646/m2 in La Victoria - Conde de Ureña - Gibralfaro to €4,505/m2 in the Historic Centre. On the other hand, average rental prices per square metre in June 2023 were around €12.0/m2 in Perchel Norte - La Trinidad to €15.8/m2 in the Centro Historico.
Find flats and houses for sale in Malaga City Centre and properties for rent. And if you're looking for a Malaga getaway, you can't miss out on the holiday rental alternatives in Malaga.
Ibiza, from mega-luxury to shanty towns: the housing crisis gripping the island
Ibiza has two faces. On one side, the Ibiza of mega-luxury: vast, exclusive nightclubs and dream-like villas. On the other, an Ibiza of shanty towns and housing exclusion. It's no longer news that soaring property prices are forcing people to leave the island because they can no longer find homes at affordable rents.
The 10 most expensive cities to live in Spain in 2025
If there’s one clear trend in Spain’s housing market, it’s rising prices, both for buying and renting. While the rankings of the most expensive cities remain relatively stable, the cost of living in them is becoming increasingly out of reach.
Tini Menorca, the award-winning prefab home on the Balearic Islands
Discover this prefab home perched on a hillside, surrounded by pines and Menorcan ullastre trees, offering an unrivalled panoramic view of the Mediterranean.
Urgent property sales in Spain
Buying property in Spain is a dream for many, but the process can often be time-consuming and expensive. With summer now in full swing, there’s no better moment to secure your perfect home and start enjoying the sunshine right away. Luckily, urgent property sales offer a quick and cost-effective way to find fantastic deals within days or weeks.
What to keep in mind before buying a prefabricated home in Spain
More and more people are considering a prefabricated house as their next home in Spain. These properties are typically built faster than traditional homes and often come with fixed prices and no hidden costs.
Five Torremolinos plots released for over 200 subsidised homes
Torremolinos City Council has launched the sale of five municipal plots, covering nearly 11,500 m², for the construction of over 200 publicly subsidised homes (VPO). According to Málaga’s Councillor for Urban Regeneration, Marina Vázquez, only 100 VPO units have been built in the past 30 years, making this initiative an “important step” towards improving access to affordable housing for many families in this Málaga town. The total value of the plots is close to €9 million.
Spain solidifies its lead as Europe’s top real estate market in 2025
The European real estate market is set to enter a phase of moderate recovery in 2025 after two years of correction, with Spain emerging as one of the best-positioned countries to benefit from this new cycle, according to the Global Trends and Tactics Q1 2025 report by Nuveen Real Estate.