5 April 2018 – Málaga Hoy
The main star of the resurgence of the real estate sector in Spain is Málaga. A report published yesterday by the appraisal company Tinsa reveals that “the province of Málaga, with 35 house sales for every 1,000 homes in the last year, is the region with the highest volume of activity in the whole country”, ahead of Alicante and the Balearic Islands.
This research compares the number of house sales and new home permits with the volume of existing housing stock in order to “identify the most dynamic markets in proportion to their size”. In terms of planned homes, Málaga is one of the provinces that is growing the fastest with 4.8 licences approved for every 1,000 homes in the last year, a similar volume to that of Alicante and Vizcaya, although the highest number of permits in proportion to the existing stock was seen in Madrid and Guipúzcoa.
Málaga is a very sought-after market for the main domestic and international property developers and that can be seen through the high number of residential projects that are currently underway both in the capital as well as at various points along the coast, primarily in Estepona. Several directors in the sector commented recently to this newspaper that Málaga is on everyone’s agenda, at the same level as Madrid and Barcelona, and that the province can expect to see multi-million euro investments.
Logically, that supply is being built because there is demand, although it is unique in the case of Málaga because, in this province, buyers looking for primary residences compete with investors looking for properties to lease to tourists and foreigners who want to acquire second homes on the coast where they can stay for several months at a time. There is tension and that drives up prices and decreases the average transaction term.
According to Tinsa’s report, the average price per square metre in the province of Málaga during the first quarter of this year was €1,479/m2, up by 5% compared to the previous year, including both new and second-hand homes. That represents a considerable boost, but, as the research itself points out, this average price is still 42% lower than the peak reached in the last decade at the height of the bubble. According to the appraisal company, that price increase means that the average mortgage taken out by buyers in Málaga amounts to €120,465 with a monthly instalment of €561, the highest in all of Andalucía.
Homes are more expensive but the time needed to sell them is less because there are increasingly more clients who are willing to pay the asking price. During the first quarter of this year, the average sales period for a home in the province of Málaga was 7.4 months, according to data from Tinsa, whilst over the last three years, the average has amounted to around nine months.
Original story: Málaga Hoy (by Ángel Recio)
Translation: Carmel Drake