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Jesús Hinojosa
Malaga
Monday, 10 July 2023, 12:33
The cost of property is continuing to rise throughout Malaga, according to latest figures. Data from the second quarter of this year, again shows the highest year-on-year increase in the whole country for homes for sale in the province, for which the average cost per square metre is 2,446 euros, some 12.4% more than in mid-2022.
Although it was revealed in the latest report by the asset valuation company Gesvalt, the quarterly variation in the price of homes for sale in the province is barely 1.1%, which could indicate a possible downward trend in the months to come, the year-on-year increase continues to soar.
Malaga is closely followed by the province of Alicante, with an 11.4% increase. The provincial average of 2,446 euros per square metre in Malaga is almost equal to the 2,481 euros on average in Madrid. In Malaga city, the average price of houses for sale also reaches 2,249 euros per square metre, but it is up 6.7% on the same figure for last year, half the provincial average. The towns on the Costa del Sol are responsible for the increase in the province, according to the report. Marbella is a striking example, with a year-on-year increase of 13%, despite that the square metre price has now reached 3,272 euros.
The most marked increase according to the Gesvalt report is rentals, which have shot up by 18% - the highest rise in the last year and a half - reaching an average cost of 13.32 euros per square metre in Malaga, 5.7% more than three months ago. Only Palma de Mallorca, Santa Cruz de Tenerife and Girona recorded higher rentals.
Regional director of Andalucía and Extremadura at Gesvalt, Gregorio Abril, said: "for the moment there is no reason to think that we have reached the ceiling either in sales or rental prices, as both supply and demand are growing, mainly in Malaga city and in the most important nearby tourist towns".
According to the head of Gesvalt, there are several factors that influence soaring rental prices in the province and in Malaga city, where rentals are also up by 17.2% compared to a year ago, reaching an average of 13.46 euros per square metre. "One of the reasons for this is the huge increase in the number of properties destined for tourist and holiday rentals. Due to the high profitability of these rentals, there is less supply of long-term rental properties," Abril said.
The company believes that a good way to curb rental prices is to increase the supply of subsidised housing through public-private partnership projects in which local councils make land available to developers so that they can build and manage the flats, with financial incentives.
Regarding the data in the report that the price of homes for sale only rose by 1.1% during the last quarter in the province, Gregorio Abril pointed out that "mainly on the coast, the demand is being covered more slowly as the properties on offer have higher prices". "Thus, the number of people who have access to this type of housing is decreasing", he added.
However, he said that "the available supply is large and prices are still booming, so whenever we are in a real estate boom, prices rise until demand falls or stabilises". For this reason, Gesvalt does not predict a change in trend, especially in Malaga city.
"The city of Malaga is currently a safe haven for investors, as any purchase can be profitable in a short time and prices are not expected to fall in the short term," Abril added. Gesvalt also said an increase in Spaniards and foreigners moving to Malaga to work remotely is also prompting a demand for housing.
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