Being landlord in Malaga is less profitable than Spain's average

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The rental yield on flats, garages, commercial premises and offices in the Costa del Sol capital is below the national average

Cristina Vallejo

Tuesday, 13 January 2026, 15:26

Malaga is the sixth provincial capital with the most expensive rent, at 15.8 euros per square metre per month, according to the latest data from real estate portal Idealista. Only Barcelona, Madrid, Palma, San Sebastián and Valencia surpass its prices. The price of renting a property in Malaga is also above the Spanish average, which stands at 14.7 euros per square metre.

The Costa del Sol capital also ranks sixth in price per square metre for flats for sale (3,643 euros per square metre), following San Sebastián, Madrid, Barcelona, Palma and Bilbao. This also contrasts with the Spanish average, which is 2,639 euros, according to Idealista's latest report on property price trends.

Idealista has calculated the rental yield by comparing the price of becoming a homeowner with the income obtained from then renting out that home, with property maintenance costs and taxes deducted.

Although the purchase and the rental prices in Malaga are among the highest in Spain, the same cannot be said about profitability. The return that landlords obtain in Malaga is only 5.2%. This is not bad, as it meets the minimum requirement for any investment to beat inflation (around 3% at the end of 2025). It also gives a higher return than a one-year treasury bill, which recently offered 2%. However, it is below the Spanish average (6.7%) and even further below Lleida, which is the provincial capital in Spain where landlords get the most out of their rentals (7.5%).

Among the main provincial cities where renting a flat is most profitable are Zamora (7.2%), Castellón de la Plana, Huelva and Jaén (7%).

The city with the lowest rental yield is San Sebastián (3.3%), which could be interpreted as meaning that the rental price does not match the effort required to purchase a property, given that the return obtained barely compensates for inflation.

REAL ESTATE ASSETS

Lower owner profitability in Malaga is not exclusive to housing, as it also applies to other real estate assets. The yield on an office rental in the Costa del Sol capital is 6.2%, according to Idealista's calculations, which put the Spanish average at around 10%, as is the case in Seville, Vitoria, Lleida, Zaragoza and Valladolid. However, in this case, the return on renting these workspaces in Malaga is similar to that in other large and expensive cities, such as Palma, Valencia, Madrid and San Sebastián, where the gross profitability figure is around 6%.

The real estate asset that provides the highest return in the city of Malaga is linked to commercial premises: 7.9%. However, in this case, it is also below the Spanish average (9.9%) and below some cities with a higher return, such as Murcia, Zaragoza, Lleida, Tarragona and Ávila (well above 10%).

Finally, buying and renting a garage in Malaga provides a return of 5%, below the Spanish average of 6%; also 3% below Murcia (8.1%) and 2.5% below Castellón (7.5%).