Torremolinos home prices get close to Marbella rates

This also means that Torremolinos is the second most expensive of the major towns on the Malaga coast, ahead of Fuengirola (3,142 euros per square metre), Nerja (3,078 euros), Estepona (3,008 euros) and Benalmádena (2,990 euros).

Torremolinos is also the second municipality, again after Marbella, where current housing prices exceed 2007 and 2008 peaks, before the property bubble burst, to the greatest extent. While in Marbella the price per square metre is almost 30% higher than the levels reached at that time, in Torremolinos it is 26.9% higher.

Both municipalities, therefore, outperform the city of Mаlaga in all these respects. The average home price in Malaga stands at 2,810 euros per square metre, which is 15.7% higher than the price at the peak of the previous cycle.

The average price per square metre in coastal municipalities stands at 3,027 euros, 16.2% higher than the price just before the property bubble burst. The provincial average stands at 2,600 euros, which is only 3.3% above 2008 levels. This suggests that property prices in the province's interior areas have not risen as sharply as on the coast, although the Tinsa report does not address this, as it is limited to analysing the property market on the Spanish coast.

While the discussion so far has centred on the average house price as a whole, Tinsa has also examined the value of properties used exclusively for holiday purposes, as well as the impact these have on the market as a whole.

It has observed that the value of such properties lies significantly above the average price in each area. On average, it stands at 4,300 euros per square metre in the Axarquía; 4,350 euros between Torremolinos and Mijas; and 5,000 euros between Marbella and Manilva. This means that the price of holiday homes is between 1,000 and 2,000 euros above the average in each area.

The Tinsa report also highlights the "difficulties the local population faces in accessing housing, given the greater prevalence of the holiday home sector". In other words, the existence of holiday homes makes it harder for local residents to access housing.

This means that the financial burden of buying a home on the coast is greater than in other parts of the country. Purchasing a flat on the Spanish coast requires spending 40% of the average household's disposable income, compared with the national average of 34%.

According to the study, this financial burden reaches its highest levels in the Balearic Islands, where residents must spend 59% of their disposable income, as well as on the coasts of Malaga (57%) and Alicante (46%).

The most moderate levels, that is, below 35%, are mainly along the northern coast (Galicia and Asturias), as well as in some areas along the coasts of Murcia, Valencia, Castellón and Almeria.

If we look at the municipalities along the Malaga coast, the highest housing cost ratios are in Nerja (64%), as well as in Torrox, Fuengirola and Marbella (63%) and in Torremolinos (62%). Across the province as a whole, accessing a home means spending 50% of disposable income on the mortgage.

Experts at Tinsa stress that the coexistence of primary and second homes tends to prioritise the higher profitability offered by the holiday property segment, which reduces the supply available to the local population and drives up prices.

However, the study also reports that property sales in coastal municipalities had already fallen by 4.3% in 2025 compared with the previous year. Demand is predominantly international across all areas, accounting for between 50% and 60% of holiday home sales.

Foreign buyers on the Malaga coast come mainly from the UK, Germany, Belgium, the Netherlands, the Nordic countries, Poland and the Middle East and there has also been an increase in American buyers.

Track the Andalusian property and real estate market