From shops to homes: Costa del sol residential revolution – Costa News Spain

Malaga’s neighbourhoods are undergoing a transformation, as once-bustling shopping streets have become quieter ground floor residences. 

In Malaga and on the Costa del Sol the phenomenon has reached unprecedented levels. The councils have introduced much stricter rules for opening new tourist rentals. The Urban Planning Management of Malaga Council granted 460 licences to convert shop units into homes in 2024.

Buildings used to be designed as flats and had cafes, bakeries or ironmongers below. The traditional Spanish street layout was this, but the times and housing demand have changed.

Malaga has already implemented a new rule to limit the market for tourist apartments. It allows properties that have potential to be converted into tourist apartments and converts ground floor spaces in buildings that would normally be shop units. In July 2024 56 licenses for change of use were granted. These affected 77 shops and enabled the development of 108 tourist rental homes or houses.

The rapid growth in this type of property coincides perfectly with the decision by the Malaga Council, to put more pressure on flats that are being rented out as tourist accommodation. Local government’s first step was to ban the approval of new tourist apartments that do not have an independent street entrance.

Council regulations state that not all empty shop units may be converted this way. Check the number of houses that can be built in the building before you invest in an empty unit.