Art and nature lovers rejoice! Hidden in the south of Spain is the city of Malaga – rich in culture, delicious tapas and stunning landscapes.

Famous for gifting the world Pablo Picasso, it’s no surprise that Malaga is brimming with unique museums, beautiful buildings and fascinating history to indulge in.

Whether you’re up for spending your days at the beach, hiking up the hills or discovering Malaga’s interesting past – there is something for everyone in this gem of a city.

Malaga is the biggest town on the Costa del Sol and spreads itself out across many areas along the coast. Deciding where to stay in Malaga can be a tough decision – you’ll want to choose a spot that suits you and your travel needs.

Whether you want to be steps from the sea, up in the hills or smack bang in the middle of town – I’ve got you covered. I’ve put together the top areas in Malaga depending on your travel style and budget. You’ll be ready to book your favourite spot in no time!

So, let’s get into the good stuff and find the spot for you in Malaga.

Where to stay in Malaga

Not worried about the neighbourhood and just looking for a place that’s right for you? Check out our recommendations for Malaga as a whole!

Top floor apartment with stunning views! | Best Airbnb in Malaga

Perched on the top floor overlooking the Old District, this property is a bright cosy studio flat just on the edge of the old town and the city centre, and it’s a short walk to a host of the cities main attractions. It’s one of the best Airbnbs in Malaga, so if you’re looking for the best place to stay, this is it!

The Urban Jungle Rooftop Hostel | Best Hostel in Malaga

The Urban Jungle Hostel is a green hostel with rooftop terrace located in the historic heart of sunny Malaga! They are the only 5-star Hostel in the city, the top-rated hostel in Malaga and one of the few located in the city center!

Head over to our comprehensive guide to the best hostels in Malaga before starting your backpacking adventure!

Halcyon Days | Best Hotel in Malaga

This 4-star hotel is located a short stroll from the Picasso Museum and the Museum of Malaga. The property has 6 apartments, all of which are filled with a range of facilities to ensure a comfortable stay. Guests can visit Calle Larios and Malaga Cathedral, which are steps away

Malaga Neighborhood Guide – Places to Stay in Malaga

FIRST TIME IN MALAGA
Old Town, Malaga
FIRST TIME IN MALAGA

Old Town

Start off on Calle Marques de Larios, the wide boulevard that is both a renowned shopping street and the gateway to the old town of Malaga. From here you can veer off down any side street for the real Malaga, or stay on course to get a broad overview of the area.

ON A BUDGET
El Perchel, Malaga
ON A BUDGET

El Perchel

Just southwest of the old town, across the Guadalmedina river and a touch closer to the beach, is the neighbourhood of El Perchel. We’ve chosen it as the best place to stay in Malaga on a budget as it is super close to the centre of things, but far enough away that prices for accommodation and entertainment is lower!

NIGHTLIFE
La Merced, Malaga
NIGHTLIFE

La Merced

Northeast of the old town is La Merced, our choice for the best neighbourhood to stay in Malaga for nightlife. It’s got more bars, clubs and restaurants than you could shake a stick at and you’ll always have an onward destination!

COOLEST PLACE TO STAY
Soho, Malaga
COOLEST PLACE TO STAY

Soho

If you’re a fan of street art then Soho will be right up your alley… It’s home to an exciting scene with murals, large and small, to be found around every corner. The range is impressive, from detailed portraiture to colourful abstracts.

FOR FAMILIES
El Palo, Malaga
FOR FAMILIES

El Palo

For this part of Malaga, you may want to hire a car to see the more central areas – which is fine because car hire is cheap and easy here -, or just grab a public bus (line 3 or 11).

Located on the south-west coast of Spain, not far north of Gibraltar (great day trip!), Malaga is the best place to stay on the Costa del Sol.

There are loads of great things to do in Malaga. Most famous for being the birthplace of Picasso, whose image and artworks can be found adorning statues and walls, it’s an ideal travel destination.

It’s large enough to have everything you could want but small enough to navigate easily. As with all Spanish cities, it’s easily and affordably accessible from within Europe. For this reason, it’s a hugely popular weekend trip from the UK, and you’ll sometimes run across five or six hens or stags on their ‘last weekend of freedom’ dressed in outrageous regalia.

It’s not all party though – the Picasso link alone testifies to the cultural clout of the place. And then there’s the beach; the Spanish coastline is always a sight for sore eyes!

In terms of neighborhoods, you have plenty of choice. Try Malagueta for an upmarket beach vibe or El Candado for a quieter coastal experience. The fishing village of Pedregalejo is the perfect place to sample the freshest seafood, while Huelin is an ideal alternative to our pick of El Palo, for families. And if you’re saving your pennies but El Perchel doesn’t appeal, try the calm atmosphere of Ciudad Jardin.

Malaga’s five best neighborhoods to stay in…

There’s somewhere for every taste, budget and style here – we’ve chosen the five best neighborhoods to stay in Malaga to help you decide!

#1 Old Town – Where to stay in Malaga your first time

Start off on Calle Marques de Larios, the wide boulevard that is both a renowned shopping street and the gateway to the old town of Malaga. From here you can veer off down any side street for the real Malaga, or stay on course to get a broad overview of the area.

This is our pick for where to stay in Malaga your first time as there is so much within walking distance and you’re spoilt for choice on what to eat, drink and do.

The triangular group of streets that encompass the old town also contain a whole swag of museums, palaces, plazas and all that jazz, so you won’t run out of things to see!

The ornate balconies of the upper windows of the streets in this area are worthy of your attention. Most streets are much narrower than the Calle mentioned above so this can make for some particularly charming pathways.

And since you’re in Malaga, you have to check out some Picasso. The Museo Picasso is a building dedicated to his life and his art, and is found right here in the old town.

This is also a great area to park up at a Calle-side bar or restaurant, and let the Andalusian way of life wash over you!

Old Town, Malaga

Things to See and Do in Old Town:

  1. Appreciate the local genius at the Picasso Museum.
  2. Explore the ancient Alcazaba and step back in time.
  3. Check out the ornate Catedral de la Encarnación.
  4. Get hands on at the interactive music museum.
  5. People-watch with a glass of sweet Malaga red and a tiny plate of something tasty.

Top floor apartment with stunning views! | Best Airbnb in Old Town

Perched on the top floor overlooking the Old District, this property is a bright cosy studio flat just on the edge of the old town and the city centre, and it’s a short walk to a host of the cities main attractions

Molina Lario | Best Hotel in Old Town

Offering views of Malaga and Malaga Cathedral, Hotel Molina Lario is located near a range of bars and clubs and treats guests to a rooftop pool and a rooftop terrace. This modern, centrally located 4-star hotel offers a sun deck, 24-hour room service and a coffee bar.

Alcazaba Premium Hostel | Best Hostel in Old Town

The rooms at Alcazaba Premium Hostel offer a modern and simple décor and parquetry throughout, and most of them offer outstanding views of the Alcazaba monument. Each room has a private bathroom including a shower, and bed linen is also provided.

Spain Select Calle Nueva Tres | Best Hotel in Old Town

Situated a short walk from Malaga Train Station, Spain Select Calle Nueva Tres offers guests a convenient base while in Malaga. There are a variety of facilities at these apartments on offer to guests, such as babysitting/child services and a fitness centre.

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We’ve tested countless backpacks over the years, but there’s one that has always been the best and remains the best buy for adventurers: the broke backpacker-approved Osprey Aether and Ariel series.

Want more deetz on why these packs are so damn perfect? Then read our comprehensive review for the inside scoop!

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#2 El Perchel – Where to stay in Malaga on a budget

Just southwest of the old town, across the Guadalmedina river and a touch closer to the beach, is the neighborhood of El Perchel. We’ve chosen it as the best place to stay in Malaga on a budget as it is super close to the centre of things, but far enough away that prices for accommodation and entertainment is lower!

It’s a bit rough around the edges and is perhaps a little more like the ‘real’ Malaga, or the way it used to be. You can still find fishermen bringing their catch in here and you won’t have to look far to find yourself some truly fresh seafood.

There’s a whole lot to be done in this neighborhood, and a lot of it for free – bonus for the budget traveller!

If you can find it, the Convento de San Andres is worth a visit. It’s not much to look at but its long and eclectic history as a convent, a hospital, a barracks and a prison means it deserves your attention.

You’re right by the port in El Perchel too, so why not head down to watch the boats go to and fro and see the catch of the day arrive?

El Perchel, Malaga
Photo: Oilisab (WikiCommons)

Things to See and Do in El Perchel:

  1. Appreciate the historical relevance of the Convento de San Andrés.
  2. Take a breath in the Jardines Picasso, with its public artworks.
  3. Get to another dimension at the VR Park Spain. This one’s not free!
  4. See multiculturalism in action at the ornate Malaga Mosque.
  5. Grab a delicious seafood dinner with the freshest ingredients from the Mercado del Carmen!

Private room with a tiny price tag | Best Airbnb in El Perchel

Complete with ensuite and AC, this is a great no thrills hotel room for those on a budget. It’s in a great location too, with the train station, beach and city centre all within a 10-minute radius.

Pension Terminal | Best Hostel in El Perchel

Pension Terminal is located in central Malaga, just 200 meters from Maria Zambrano train station and bus station. The reception is open 24 hours and the rooms are spacious and offer air conditioning and Wi-Fi.

Barcelo Malaga | Best Hotel in El Perchel

Guests can enjoy the sun on the terrace or have a drink at the bar. The plunge pool and fitness centre provide great places to work out. The air-conditioned rooms offer views of the city and are fitted with modern luxuries like minibars and flat-screen TVs.

Hotel Sercotel Malaga | Best Hotel in El Perchel

Providing 4-star accommodation with air-conditioned rooms, this hotel has panoramic city views, plus massage services, a coffee bar and an all-inclusive meal plan. Guests staying here can enjoy the luxurious rooms that offer a flat-screen TV, an in-room safe and a mini bar.

#3 La Merced – Best area to stay in Malaga for nightlife

Northeast of the old town is La Merced, our choice for the best neighborhood to stay in Malaga for nightlife. It’s got more bars, clubs and restaurants than you could shake a stick at and you’ll always have an onward destination!

La Merced is the entertainment centre for the city. You especially have to find your way to El Microteatro – the mini theatre where you can enjoy a drink while getting a theatrical experience, in miniature scale!

For the culture or history buffs, this is the birthplace of Picasso. The Plaza de la Merced was where he was born, yes, but also the area he spent his childhood. There is street art adorning the walls of the area; a part tribute to him, part original local expression. Also – you can find a street market here if you happen to be visiting on the last Sunday of every month.

The covered market of this neighborhood, Mercado de la Merced, is a great place to sample a whole range of dishes ranging from local delicacies to crowd favourites. Might we suggest a tapas crawl? Just go easy on the ‘Malagas’.

The bars and clubs of Calle Alamo and Calle Carreteria are your best place to follow on to, once you have a full stomach. There are masses of different venues so you’ll be sure to find one, or three, that suits your style!

La Merced, Malaga

Things to See and Do in La Merced:

  1. Check out Picasso’s birthplace at Plaza de la Merced.
  2. Enjoy a tapas feast at the Mercado de la Merced.
  3. Check out the theatrical displays at El Microteatro.
  4. Relax after a big night out at the Arabic Baths.
  5. Weave your way down the entertainment streets of Calle Alamo and Calle Carreteria!

Great for a pool party! | Best Airbnb in La Merced

Right in the heart of Malaga’s renowned nightlife scene, this apartment complete with private bedrooms and bathrooms is great for a group looking for a good time. Wash away your hangover in the private rooftop pool and get ready for round 2.

Minimal Rooms | Best Hotel in La Merced

A satisfying breakfast is prepared every morning at Minimal Rooms, and there are numerous cafés and eateries close by. Malaga’s attractions, including Malaga Cathedral, are within easy walking distance of the property.

The Lights Garden | Best Hostel in La Merced

This typical hostel is a charming 100+-year-old traditional Andalusian house with a friendly, urban feel. The hostel was created as an idea by travelers that want to make your stay in this beautiful city as comfortable and memorable as possible.

La Siesta Malaga Guesthouse | Best Hotel in La Merced

The guest house is close to nearby attractions, including the Picasso Museum and Malaga Cathedral. There are a range of facilities available to guests of La Siesta Malaga Guesthouse, such as luggage storage, a tour desk and a ticket service.

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Is your phone eSIM ready? Read about how e-Sims work or click below to see one of the top eSIM providers on the market and ditch the plastic.

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#4 Soho – Coolest place to stay in Malaga

If you’re a fan of street art then Soho will be right up your alley… It’s home to an exciting scene with murals, large and small, to be found around every corner. The range is impressive, from detailed portraiture to colourful abstracts.

What can be done with a spray can is truly astounding, and locals and world-renowned artists have all been in on the act!

You can get a map from Málaga Arte Urbano Sohoto find your way around it all (available at your hostel or hotel), or you can spend a day exploring it on your own.

When one of our travel pros went through Soho by car without having known the area in advance, they spontaneously stopped to get out and walk around for a few hours! On foot is the only way you can appreciate the breadth and details of the scenes.

While Soho was once the place to live amongst Andalusians, it’s now a bit shabbier and neglected. This means you won’t find the crowds here to the same extent of some other areas, just one of the reasons we have named it the coolest place to stay in Malaga.

It’s also a very small neighborhood, so you can head on into the centre once you’ve seen your fill, and it’ll only take you ten minutes to walk there!

Soho, Malaga

Things to See and Do in Soho:

  1. Feast your senses at Mercado Central de Atarazanas. Food, wine, fiesta!
  2. Wander around the streets, checking out the artworks on display.
  3. Start your walk into the old town from Marqués de Larios statue.
  4. Relax at Plaza de la Marina, by the water.
  5. Have a picnic or siesta in Malaga Park, created in the late 19th century.

Bright apartment with a great location | Best Airbnb in Soho

With the train station, beach, and main hub of bars and restaurants all a short walk away, you won’t waste a second of your trip with this cute and bright self-contained apartment. The living room, kitchen, and bathroom all come kitted out with everything you’ll need.

Alameda Hotel | Best Hostel in Soho

This hostel is in a great location to visit the historical center, Cathedral, Picasso Museum…on foot. Refurbished rooms in April 2012 now each have a private bathroom, TV, air-conditioning – heating, hairdryer and Free WIFI. Alameda Hotel is proudly recommended by Guide Routard.

Life Apartments Alameda Colon | Best Hotel in Soho

Life Apartments Alameda Colon is a comfortable setting while visiting Malaga and is close to everything the area has to offer. It also offers a 24-hour reception, a concierge and free Wi-Fi.

The property has 8 apartments and has been recently refurbished.

Room Mate Valeria | Best Hotel in Soho

Room Mate Valeria provides 4-star accommodation, as well as an outdoor pool. It is ideally positioned for those wanting to visit local attractions. Staff are available 24 hours a day and can assist with booking tours and tickets.

#5 El Palo – Best neighborhood in Malaga for families

For this part of Malaga, you may want to hire a car to see the more central areas – which is fine because car hire is cheap and easy here -, or just grab a public bus (line 3 or 11).

El Palo is out to the east of the old town and surrounds, further along the coast. It’s our pick for the best neighborhood to stay in Malaga for families because of its brilliant beaches!

The long smooth stretch of sand here is also where the fishermen still come ashore with their catch, and their boats make a picturesque background for a day of fun in the sun.

The promenade running alongside the beach makes for great, slow wandering with a cool drink or even cooler ice cream!

This neighborhood is directly beside that of Pedregalejo, another great family holiday location. There are play areas dotted right the way along the promenade of both neighborhoods, so there’s plenty to keep the kids entertained if the beach isn’t enough!

And when you want to head into the centre to check things out, it’s an easy drive or bus ride just 5km back along the coast.

To be honest though, the seafood restaurants and festivals found in El Palo may just keep you captive right here the whole time!

El Palo, Malaga

Things to See and Do in El Palo:

  1. Try the pescaito frito, fried fish you can see on strings on beach-side stalls and restaurants.
  2. Swim, read, relax, repeat.
  3. Take a family photo with a jabega, the unique Phoenician boat, in the background.
  4. Wander along the promenade, stopping to play where necessary of course.
  5. Get amongst the locals at one of the many festivals celebrated here throughout the year!

La Moraga de Poniente Malaga | Best Hostel in El Palo

Malaga Hostel is five minutes walking distance from the best beaches of the famous area Pedregalejo. This Hostel is the first one in Malaga East. It opened in June 2011 and is designed for medium and long term stays.

Hotel La Chancla | Best Hotel in El Palo

Hotel La Chancla provides cosy 3-star accommodation in Malaga. It has a spa and wellness centre, as well as a rooftop terrace, a sauna and a Jacuzzi. The hotel has recently been refurbished and offers massage services, a coffee bar and free Wi-Fi.

Sun soaked duplex with a sea view | Best Airbnb in El Palo

Just one block back from the beachfront, and with uninterrupted views of the sea and the ocean, this is a great property in a safe neighborhood. It’s got all the amenities you’ll need, and there’s a host of restaurants in the area that cater to all ages and all budgets.

La Francesca Suites | Best Hotel in El Palo

Providing a shuttle service to Malaga Airport, as well as complimentary Wi-Fi, La Francesa Suites is a comfortable base in Malaga. It also provides a swimming pool, a concierge and a safe. Guests can enjoy the outdoors on the terrace or have a drink at the bar.

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FAQ about Finding a Place to Stay in Malaga

Here’s what people usually ask us about the areas of Malaga and where to stay.

What To Pack For Malaga

Pants, socks, underwear, soap?! Take it from me, packing for a hostel stay is not always quite as straightforward as it seems. Working out what to bring and what to leave at home is an art I have perfected over many years.

Product
Description
Don’t Let Snorers Keep You Awake!
Don’t Let Snorers Keep You Awake!

Ear Plugs

Snoring dorm-mates can ruin your nights rest and seriously damage the hostel experience. This is why I always travel with a pack of decent ear plugs.

Keep your laundry organized and stink free
Keep your laundry organized and stink free

Hanging Laundry Bag

Trust us, this is an absolute game changer. Super compact, a hanging mesh laundry bag stops your dirty clothes from stinking, you don’t know how much you need one of these… so just get it, thank us later.

Stay Dry With a Micro Towel
Stay Dry With a Micro Towel

Sea To Summit Micro Towel

Hostel towels are scummy and take forever to dry. Microfibre towels dry quickly, are compact, lightweight, and can be used as a blanket or yoga mat if need be.

Make Some New Buddies…
Make Some New Buddies…

Monopoly Deal

Forget about Poker! Monopoly Deal is the single best travel card game that we have ever played. Works with 2-5 players and guarantees happy days.

Reduce Plastic – Bring a Water Bottle!
Reduce Plastic – Bring a Water Bottle!

Grayl Geopress Water Bottle

Always travel with a water bottle! They save you money and reduce your plastic footprint on our planet. The Grayl Geopress acts as a purifier AND temperature regulator. Boom!

Check out my definitive Hotel Packing list for even more top packing tips!

Don’t Forget Travel Insurance for Malaga

ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.

They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.

SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!

Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.

Final Thoughts on Where to Stay in Malaga

Malaga is a winding city with hundreds of tiny streets to get lost in; the best way to travel, if you ask us!

Now you’ll be living like a local, thanks to our handy guide. There are many areas to explore while you’re there though, so if you find a hidden gem, be sure to let us know.

Our best hotel overall, Halcyon Days, is a great place to start, situated right in the midst of the action. Their charming apartments are a home away from home and the perfect base for adventures.
That’s it for the tips and recommendations on where to stay in Malaga from our travel team.

So get your art critic hat on and we’ll see you in Soho, or your party pants on and we’ll catch you in La Merced. Adios!

While Spain can be very safe, it’s super important to make sure you get travel insurance!

Looking for more info on travelling to Malaga and Spain?

And for transparency’s sake, please know that some of the links in our content are affiliate links. That means that if you book your accommodation, buy your gear, or sort your insurance through our link, we earn a small commission (at no extra cost to you). That said, we only link to the gear we trust and never recommend services we don’t believe are up to scratch. Again, thank you!