Malaga Rents Triple on New Contracts as Housing Pressure Intensifies

Malaga has become one of Spain’s most challenging rental markets, with new tenancy agreements increasing three times faster than rent reviews on existing contracts. According to newly released data from Spain’s National Statistics Institute (INE), rents in Malaga province rose by an average of 11% in newly signed contracts during 2024, compared to just 3.7% for tenants renewing existing agreements.

The figures place Malaga as the second province in Spain with the largest increase in rents following the expiration of rental contracts, behind only Valencia. Nationwide, new rental contracts increased by an average of 8.8%, highlighting the particularly strong pressure on the Costa del Sol housing market.

Experts attribute the trend to a combination of population growth, limited housing supply, tourism-related demand, and increasing investment in residential property. The gap between existing and new rental prices continues to widen, making it increasingly difficult for tenants to remain in their homes when contracts expire.

Researchers also point to the growing impact of tourism and short-term rentals, which reduce the availability of long-term housing and contribute to rising prices. As a result, Malaga continues to experience some of the strongest rental inflation in Spain.

The findings have renewed debate around potential housing reforms, including the introduction of indefinite rental contracts, a model already used in several European countries. Supporters argue that such measures could provide greater stability for tenants while maintaining flexibility for property owners.

With rental demand remaining strong and housing supply constrained, market analysts expect rental prices in Malaga to continue rising throughout 2025, reinforcing the province’s position as one of Spain’s most competitive residential markets.

Source: Sur In English, June 2026