Housing shortfall in Malaga amounts to 14,000 properties over the last ten years

Only the provincial municipalities of Nerja, Campillos, Manilva, Algarrobo, Casares, Estepona and Benahavís stand out for having achieved a balance between supply and demand in the last decade

Nuria Triguero

Malaga

Monday, 31 March 2025, 20:16

The provincial association of builders and developers of Malaga (ACP Málaga) has released a study that puts figures on the housing deficit suffered by the province: of 32 municipalities analysed, only seven (22% of the total) have built enough homes to to meet housing demand in the last decade. Then, if we focus on Malaga city and the immediate surrounding area (Malaga, Rincón de la Victoria, Alhaurín de la Torre, Torremolinos and Cártama), between 2014 and 2024 there has been a gap of more than 14,000 homes between those that have been built (19,570) and the population increase that required almost 34,000 new homes.

"Most municipalities are facing a severe housing shortage that is straining the housing market and driving up prices," states the ACP report. "To ensure a balanced market, every new household should have a new home available. However, in much of the Costa del Sol this ratio has not been achieved, leading to fierce competition for the few available properties and causing price increases," explain the report authors.

Only the municipalities of Nerja, Campillos, Manilva, Algarrobo, Casares, Estepona and Benahavís stand out for having achieved a balance between supply and demand, building at least one home for every new household created. "These municipalities have managed to maintain a more stable real estate market, avoiding greater pressure on prices."

Rincón de la Victoria, the big failure on the Malaga coastline

At the other end of the scale is Rincón de la Victoria, the big failure on the Malaga coastline. Not only does it have the worst construction ratio in relation to its population growth, but it is also the worst-performing coastal municipality in the province in terms of new builds.

It scores worst in the ACP study for not having been able to generate enough housing to absorb the increase in demand for housing, which puts it in a critical position in the housing market. This deficit, coupled with the fact that it is part of the wider suburban area for Malaga city and subject to high demand for holiday housing in the area, could generate an even more stressed housing market in the coming years, making access to housing more difficult for residents and new buyers alike.

Impact on house prices

The study also analysed how the housing shortage has influenced the increase in the price per square metre. The report notes a direct correlation between the municipalities that have lower construction rates and are experiencing steeper price increases. For the ACP, this correlation demonstrates "the need for policies that encourage the construction of new housing."

For some time now this trade association has been calling for an emergency urban development plan that would urgently boost the creation of urban land being freed for more building as it is the main raw material for the construction of new housing.

ACP's president in Malaga - Ignacio Peinado, who also represents the association for all Andalucía, has warned of the urgency of freeing up land for development and speeding up the administrative procedures for new developments: "The lack of housing is a structural problem that requires an immediate response. We need greater legal certainty and a regulatory framework that allows us to meet the growing demand without making access to housing even more expensive. It is time to apply emergency urban planning and take advantage of all the tools available, such as the Junta's new housing decree, to ensure that our municipalities grow in a sustainable way and with sufficient housing supply."

Furthermore, he insists that it is imperative that the different governing bodies must facilitate the financing of development works, so as to accelerate the transformation of developable land into land ready for the construction of new housing. Without this support, the housing shortage will continue to grow, exacerbating the problems of land access and making the market even more expensive.

Making the most of the Junta's housing decree

The ACP also underlines the unique opportunity offered to these municipalities to make the most of the housing decree offered by the regional government. This decree provides tools to speed up the construction of affordable housing, specifically subsidised, affordable housing (VPO, 'vivienda de protección oficial').

Ittherefore calls upon the municipalities with the greatest difficulties in generating housing, and which are currently at the bottom of the ranking, to make public their "municipal action plan" to reverse this situation. Transparency and the implementation of effective strategies will be key to improving the availability of housing and ensuring sustainable urban development on the Costa del Sol.

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