"We are beginning to adapt Malaga's residential rental model to the latest global trends"

Sergio Sánz

Residential & Alternatives. Capital Markets

Malaga is beginning to adapt to the trends in the new ways of life prevailing in major European capitals, Madrid and Barcelona.

Investors have their sights set on the Build to Rent (BTR) and co-living residential models due to the current shortage of supply in the residential rental housing market, the demand requirements in terms of quality and the upward trend in the number of households in Malaga.

In recent months, several land deals have taken place which are expected to be used for BTR and which herald the intense activity that the city will experience in this type of development in the medium term.

As a provincial capital with one of the most consolidated residential markets in Spain, Malaga has the potential for growth in these housing formats, driven by socio-cultural changes and the financial difficulty of buying a home. BTR and co-living would help to reduce supply-demand pressure.

However, there is still a long way to go. For the time being there are only 636 BTR dwellings in the city. In the coming years an increase to 1,452 units is expected and two co-living projects will be added to the residential stock.

Differences between BTR and CO-LIVIN
Tenant profile


  • Intense investment activity in both land and projects

  • Tension between supply and demand. The demand for rental housing far exceeds the existing supply, resulting in price tensions

  • Increased interest in living and working in the city, with exponential growth after the pandemic

  • Need to renew the rental housing stock through refurbishment or new construction

  • The entry of new funds interested in this market segment in Malaga will bring about its professionalisation

New needs are setting new trends, with solutions that improve access, flexibility, sustainability, and quality of housing