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Best Real Estate Investment Opportunities and Platforms in Malaga

In tandem with its popularity among foreign residents and tourists, Malaga offers a wide range of real estate investment opportunities. They range from holiday-let purchases to build-to-rent properties and student accommodation. However, with the current shortage of available stock, you might be looking beyond real estate for opportunities that allow you to grow your money gradually. In this guide, we look closely at the best investment opportunities to consider in Malaga and platforms that can be used for effective investments.

Investment Opportunities in Malaga

There are different ways you can make your money grow when in Malaga. From real estate to property rentals, there are various ways for you to expand your funds while enjoying life in the city.

Real Estate

Property is the most popular way to invest in Malaga, and the city offers many real estate investment prospects, whether for residential or holiday use. You’ll find a wide range of architecture in the area, from traditional Andalusian to cutting-edge modern. Prices also suit all budgets, with the average apartment starting at €180,000 and luxury villas attracting multi-million-euro price tags.

Before investing in real estate in Malaga, you should consider factors like your budget and investment goals. Don’t forget to factor in all purchase costs (at least 8% of the price) and running expenses.

As always, location is a prime consideration. While the historic city centre and the eastern area are generally the most popular places to invest in residential and commercial property, real estate in these locations is the most expensive in the city.

You might also want to look beyond Malaga to other Costa del Sol resorts such as Marbella, Fuengirola, Benalmadena and Estepona in the west, and Rincón de la Victoria, Torre del Mar and Nerja in the east.

Stock investment opportunities in Malaga

Another option is stocks. Investors in Malaga can access stock markets with online brokerage platforms that offer trading services. These platforms allow investors to buy and sell stocks listed on major exchanges in Spain and internationally.

When considering stock investments in Malaga, focus on diversification, risk management, and long-term holding. You can also use tools like MetaTrader 5, which helps with research and efficient trading.

Property Rentals

Buy-to-let investment in Malaga is also worth considering. The buoyant tourist industry lends itself to substantial returns from holiday lets. Consider investing in an Airbnb in Malaga to tap into this sector and keep your property for your own use. Note, however, that there are restrictions on holiday lets. For example, some communities of owners don’t allow them.

The long-term rental market in Malaga offers solid returns as well. In Q1 2024, Tinsa estimated the CAGR return in Malaga at 6.9% over five years. This figure rises to 9% for properties in the east.

However, long-term rental laws in Spain favour tenants, so before taking the dive, ensure you comply with local regulations and licensing requirements and familiarize yourself with Malaga landlord-tenant regulations. It’s also essential to carry out a thorough tenant screening process before allowing anyone in your home.

Forex

Malaga uses the euro as its currency, which allows investors to benefit from foreign exchange. You can invest in well-known forex pairs like EUR/USD, EUR/AUD, EUR/CAD, and EUR/GBP through online brokers.

Investors in Malaga can trade currencies from around the world with online platforms. Consider using a demo account to get experience and work with a reputable forex broker. Stay up to date with euro movements to protect your investments. And remember, currency fluctuations can add or wipe out gains overnight.

Alternative Investments

In Malaga, you’re not limited to stocks, real estate, and currency trading. Alternative investments are available, but ensure you do thorough research before working with any company. Malaga city is currently a hub for technology parks and innovation, attracting companies like Google, Vodafone and Citigroup. As a result, tech setups offer good investment opportunities in Malaga.

renewable energy investment opportunities

Agribusiness ventures and renewable energy projects are also popular investment options in Malaga. Consider investing in commercial properties like shopping centres and retail spaces. The city also has a culinary scene, so you can invest in a restaurant or café to grow your profit.

Next steps

If you’d like to invest in Malaga, contact our team. While we’re not investment experts, we have good relationships with professionals who can point you in the right direction.

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