8 June 2018 – Eje Prime
Málaga is in the real estate news but this time not only because of its coastal towns. The boom in the Malagan capital looks set to push the Costa del Sol to maximum highs this year in the residential market. According to the report Vision 2018. The Real Estate Market in Málaga, compiled by the consultancy firm Savills Aguirre Newman, more homes will be sold this year than in 2007 (19,464), just before the start of the crisis, which affected the sector for almost a decade.
The director of the consultancy firm in Málaga, José Félix Pérez-Peña, explained that the city of Málaga has become one of the main focuses of attention for the real estate sector at the domestic level, and it is also positioning itself as an investment location for overseas clients. “This is something that never used to happen, the residential engine used to always focus, almost 90%, on the Costa del Sol”.
Nowadays, property developers and funds are investing in the capital, acquiring land in light of the existing demand. In this regard, large real estate groups, such as in the case of Gilmar, have also opened regional offices in the city, as revealed by Eje Prime.
Similarly, the report from Savills Aguirre Newman highlights that, within Andalucía, Málaga has positioned itself as the main powerhouse, ahead even of the capital, Sevilla. In this regard, the consultancy firm underlines that 5,236 new homes were started in the city on the Costa del Sol in 2017 compared with 2,980 in Sevilla. In terms of deliveries, Málaga outperformed Sevilla once again with the handover of 2,580 finished units compared with 1,511 in Sevilla.
23.8% larger residential supply in 2017
Another one of the key aspects in the growth of Málaga Capital is its residential supply. Last year, new builds grew by 23.8%, increasing the number of planned homes by 3,859 in the case of apartment blocks and 370 in the case of detached family homes.
In terms of the city’s neighbourhoods, Puerto de la Torre accounted for the highest proportion of stock, with 55% of the total. In total, across the province, 17,738 homes were sold last year.
In terms of prices, the centre of Málaga is where the price per square metre for homes in apartment blocks is most expensive, reaching €3,073/m2, whilst Málaga Este is becoming a reference in the market for detached family homes with average prices of €2,568/m2.
Original story: Eje Prime
Translation: Carmel Drake