EThe office market in Málaga is already showing signs of recovery. The main parameters have hardly shifted and the city is starting to capture investor interest in office buildings.

Aranzazu García | Associate. Offices. Leasing

The city should get ready and continue to project itself as an alternative location to Madrid, Barcelona and other European capitals.

Despite the pandemic and the effects of remote working, the office market in Málaga is already showing signs of recovery following months of paralysis.

The main parameters have hardly shifted. The only observation was a rise in vacancy rates, which returned to 2019 levels and have now fallen, showing the good health of the office market.

Rental income has remained stable, with slight rises in some locations due to a lack of current availability and some minimal adjustments for agreements formalised during the worst times of uncertainty.

The pandemic has not deterred interest that is starting to arise regarding investment in office buildings in the city.

Three new transactions have emerged relating to national and international funds specialising in offices.

The recent news of Google’s commitment to the city and the acquisition of land adjacent to the Tabacalera are undoubtedly a sign of optimism for the future and of the potential of the office market. As a very attractive city in which to live and work, Málaga must continue to work on and commit to the development of new-builds in order to meet the growing demand.

Evolution of average rent (city vs prime)
Evolution of the stock
Evolution of the stock vs vacancy rate
Comparative of initial rent
Theoretical rent of prime European areas 1Q 2021
Theoretical yield comparative (%)


  • The city’s office spaces continue to be insufficient and it requires the expansion and incorporation of state-of-the-art buildings with facilities and technology adapted to demand.

  • The pandemic has logically entailed the loss of agreements with a slight impact on the vacancy rate, which returned to 2019 levels, although today the fluctuation is lower.

  • Málaga continues to capture the attention of leading tech companies: the commitment of Google and Vodafone to the city will undoubtedly have a gravitational effect, as will the telemarketing sector’s commitment to the Costa del Sol, with the arrival of new international companies.

  • The need for space in the urban area has led to commercial premises being converted into business offices, with two relevant operations in the CBD.

  • Rental income continued to bounced back in some locations due to the current shortage of quality premises.

  • The pandemic has not deterred interest regarding national and international investment, with three new recent transactions.

  • Málaga arises interest for office and remote working. Despite the pandemic, the population census is up, which is a sign of its appeal over other regions.

The recipe for success entails the development of new projects in the urban area and to continue standing out as city by the sea for living and working

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