Exploring the Airbnb Market in Malaga, Spain
Malaga boasts around 14km of beautiful coastline, combined with historical landmarks, world-class dining and many spectacular golf courses. Because of this, it attracts a wide range of travellers, from beach lovers to culture vultures, with millions of international tourists landing on the city every year. Thanks to its diverse offering, Malaga also draws year-round appeal and demand, making it a prime spot in Spain for short-term let investments like Airbnb.
International & Domestic Demand
In the first half of 2023, over 10 million passengers passed through Málaga Airport for the first time ever according to the world’s leading airport operator, Aena. These figures represent a 23% increase compared to the previous year and are 9.2% higher than the same period in 2019. The UK was the largest international market with 2,410,951 travellers, followed by Germany (703,698), Holland (635,208), France (559,553) and Italy (459,891).
In the peak of August, over 150 direct flights departed from Málaga Airport. Around 37% of all foreign visitors arrive in the high season, from July to September.
Malaga is known for attracting large crowds of Brits and Europeans looking for a sunny escape. However, the domestic market actually accounts for nearly half of all visitors in the Costa del Sol. A total of 6,257,000 Spanish tourists visited Malaga last year, which is almost half a million (or 10%) more than in 2019.
With strong demand from both domestic and international tourists, short-stay accommodation in Malaga is extremely sought after, giving way to high occupancy levels and attractive rental yields.
The Short-Term Rental Market
AirDNA is a short-term rental intelligence platform which analyses data from over 10 million properties on Airbnb and Vrbo. According to its data, the short-term rental market in Malaga represents a strong investment.
Property owners in Malaga generate an average annual revenue of €33,900 as of September 2023, which is 6% higher than the same period last year. The average rate for a holiday let sits around €131 per night, up 8% year on year. Professionally managed rates average at €166.2 (+3% YoY), and luxury rates at €212.5 (+3% YoY).
Malaga boasts a solid 71% occupancy, ranging from 58% in January to 81% in August. Holidayers stay for a length of 4 days on average.
Total available listings on Airbnb, Vrbo or both have increased by 24% over the past year and now total 7,898.
Over half (52%) of the listings are one-bedroom properties, whilst 28% are two-beds and 14% three-beds. Four and five-bedroom homes make up just 6% of all listings combined.
Due to soaring inflation and growing demand for properties, rental rates have increased by 18% over the past three years. With year-round occupancy, solid daily rates, and consistent rental growth, it is clear to see why Malaga in Spain is a prime destination for Airbnb and other short-stay rental properties.
The city is at the height of its popularity, having just this year been named the World’s Top Alternative Capital City by Forbes Magazine. According to Google search data, Malaga is the most searched alternative city, with over 312,000 searches for the term “Malaga Holiday” made each year and a staggering 478,6000 overall searches.
Therefore, now is an ideal time to own a holiday let in this thriving and well-established tourist city. If you’re interested in capitalising on Malaga’s short-term rental market, get in touch today.
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