Savills Aguirre Newman: House Prices Will Rise by 5%-8% in Málaga in 2018

22 March 2018 – 20 Minutos

The average price of housing in Málaga rose by 5.4% in 2017, according to the Residential Market report published by the international consultancy firm Savills Aguirre Newman, which also predicts that house prices will rise by between 5% and 8% this year.

The report reveals its forecast for this year is that prices will continue their growing trend thanks to the “strong behaviour of demand”. In 2018, the increase in property development activity and the construction of new promotions are going to continue to increase, which means that new residential areas in Málaga are going to be consolidated; this is already happening in the Martiricos area.

In terms of the main players in the residential market in Málaga, during 2018, the consolidation of financial institutions and servicers will continue, as it will of international funds with a vocation for making long-term investments.

For José Luis Sanz, the deputy director of Savills Aguirre Newman’s delegation in Andalucía, the residential market in Málaga has evolved “in a positive way, offering more modern and efficient projects, and with a clear focus on design and quality”.

Moreover, he added that the entry of international groups into the market has benefitted the sector. Currently, the product offered/demanded is a type of home that is characterised by, on the one hand, open plan spaces with large terraces in coastal areas, and, on the other hand, vertical designs that make efficient use of the available space in more urban areas.

The report analyses 113 developments in total, of which 82 are being marketed (…) and 31 have already been sold. The study counted 54 new promotions and, for the third year in a row, reported that no developments have been suspended or removed from sale.

The main areas of growth for new housing in Málaga are Teatinos and Pacífico (…).

“It is important to highlight the dynamism of the land market in the capital”, said Sanz, who added that “Over the last year, there have continued to be numerous, significant transactions involving residential land both in the Málaga metropolitan area, as well as in the neighbouring districts, such as Alhaurín de la Torre, Rincón de la Victoria and in the Churriana district of the capital” (…).

2017

Last year, the average price of a home in an apartment block in the province amounted to €216,713, whilst the average price of a family house stood at €274,420.

In Málaga, the split by type of home is 78% homes in apartment buildings and 22% family houses. This increase in prices takes the average price per m2 of a flat/apartment to €1,727, with an average surface area of 125 m2, whilst the average price of a family home now stands at €1,616, with an average surface area of 170 m2.

With these average prices, the highest price recorded for the sale of a home in an apartment building in the Málaga-East area amounted to €820,000 (€5,622/m2) and in the centre amounted to €1,350,000 (€5,555/m2). In terms of family homes, a property was sold also in the Málaga-East area for €1,175,000 (€2,937/m2) according to Aguirre.

Original story: 20 Minutos

Translation: Carmel Drake

ST: Costa Del Sol Accounts For Most New Homes On Mediterranean Coast

25 May 2017 – El Economista

The Costa del Sol is the stretch of the Mediterranean coast where the largest number of new homes for sale can be found, according to a report prepared by ST Sociedad de Tasación, which analyses a total of 67 towns along the coasts of Girona, Tarragona, Alicante, Murcia and Málaga.

ST has analysed 456 new housing developments in total and has identified 5,594 units for sale, along the five coasts analysed. According to the study, the average price of these homes amounts to €210,760.

In fact, the study shows that the coasts that are located towards the South of Spain have the most homes up for sale, compared with the coasts located towards the North, and it reveals that the Málagan coast has a total of 2,482 new homes on the market.

Specifically, the report highlights that along the Costa Brava, Dorada, Blanca, Cálida and del Sol, there are 5,594 new housing units in total, however, they are not distributed in a homogeneous way along these coastlines. In addition to the homes in Málaga, the other dwellings are located in Alicante (2,100 homes), Tarragona (378 homes), Murcia (345 homes) and Girona (279 homes).

ST also said that the supply is unequal within these coastal regions and that Murcia and Málaga are the areas where the available housing supply is distributed in the most balanced way.

The pending supply for sale does not exceed 70% of the properties developed, although that percentage is higher in Altafulla, Cambrils and Cunil, all towns in Tarragona. Along the coasts of Girona and Alicante, only two towns in each one, Blanes and Finestrat, have a volume of supply that is similar to these towns.

The study reflects that there are four coasts with an average house price of between €150,000 and €200,000, whilst in the case of the Costa del Sol, that figure soars to €353,000.

Although on the Costa Dorada and the Costa Cálida, there is not a single dwelling being sold for €500,000, on the Costa del Sol, 287 homes are on the market for that price, accounting for 12% of the total. Moreover, that figure decreases to 4% in the case of the Costa Blanca and 2% on the Costa Brava.

The average surface area of the homes for sale is 112 m2. Nevertheless, the homes on the Costa del Sol exceed that average (145 m2). Meanwhile, the towns on the Costa Brava (100 m2) offer the smallest homes in general, followed by those on the Costa Blanca (102 m2) and the Costa Brava (103 m2).

In terms of the type of home, only 60% of the dwellings on each coast are family homes and almost none of the properties are studios (i.e. few have no bedrooms), given that most homes typically have one or two bedrooms.

Taking into consideration the construction status of the homes, ST has recorded that the majority (60%) of the properties up for sale have already been completed, more than 25% are still under construction and 10% have not been started yet.

Original story: El Economista

Translation: Carmel Drake