Welcome to the latest Guide to Malaga report on the Malaga property market. In it, we take a snapshot of the situation in the city with the latest data available. Our report offers insight into prices for property in Malaga, the latest sales figures and what sort of return you can expect from buy-to-let. And we include highlights from recent reports on the market in the city.
Why a Malaga Property Report?
Malaga province has been a popular location for foreigners to buy property for decades. But homes in Malaga city are recent arrivals on the must-buy list. Since Guide to Malaga began back in September 2015, we have noticed an exponential rise in interest in the city’s property market.
Post lockdown it appears to be even higher- we’ve had more emails than ever asking for advice on where, what and how to buy. Interest is high among Northern Europeans keen to buy in Malaga. We’ve compiled this report in response to this demand for information. And as always, if you need any more, get in touch.
Property prices in Malaga
Figures for changes in property prices in Spain always tag behind in time so many are often at least 3 months old. In this Malaga Property Report we quote the latest available.
In Q4 2021 (latest available), the average price per m² in Malaga was €2,286. This is 6% up in the year and 3.4% in the quarter, according to the Registrars Association latest quarterly review. Figures are based on prices registered in title deeds.
Tinsa (Spain’s largest valuation company whose data is also based on valuations) reports that prices went up by 6% in the year to Q1 2022 in Malaga city, compared to a national rate of 6.6% and a provincial rate of 7.6%. Prices stood on average at 21% below their peak in Q2 2008.
Malaga city and province both posted some of the highest quarter-on-quarter increases for any coastal or resort location in Spain. Statistics from Idealista show a price rise of 5.7% in the city since March 2021.
New-build prices in Malaga
Off-plan and new properties tend to come with higher price tags than resale homes, a trend clearly visible in the city. According to the latest report from the OMAU (March 2022), prices for new builds rose by 7.2% to reach an average of €3,453 per m². The most expensive new properties were in the east of Malaga (€5,032 per m²), although those in the west, particularly around Malaga Towers weren’t far behind (€4,707 per m²) and a rise of almost 17% in the year.
Biggest price hikes
The areas with the highest annual price rises were Carretera de Cadiz (up 10.8%), the East (up 9.4%), Teatinos (+8.3%) and Puerto de la Torre (up 6.8%), in the year to March 2022. These figures confirm the continuing trend to move out of the city centre into the suburbs, but the Centre has recovered from the pandemic slump and is back on its upward trajectory. As usual, the East had the most expensive property with a square metre price at €3,028.
Property sales in Malaga
The latest statistics for Malaga province (Q4 2021) from the Registrars Association are as follows:
- Sales totalled 9,376 in the quarter, up by 42.2% in the year The figure is well ahead of the same period in 2019, indicating that the property market has exceeded pre-pandemic levels.
- Resale property sales rose by 42.5% in the year.
- Purchases of new-build properties in Malaga rose by 41.4% in the year. The 2,318 new-build sales were the third-highest figure in Spain.
- Foreigners accounted for 30.64% of all purchases (third highest in Spain) with a majority of British buyers.
- Malaga had the third-highest number of new-build sales per 1,000 inhabitants in Spain.
- The province had the fourth-highest sales after Madrid, Barcelona and Valencia.
Another indication of the brisk market in Malaga comes in the figures for mortgage loans. At the end of the year, 20,900 had been approved in the province, up 27% on 2020 and close to figures seen at the height of the last cycle in 2008.
Time spent on the market
The length of time a property spends on the market is a good indication of market temperature. A report from Idealista in early March found that in February, almost 20% of properties on the market in Malaga sold in less than one week. Nearly a third changed hands in under 3 months. The Costa del Sol property market experienced a similar trend.
Rental returns in Malaga
The Tinsa Q1 2022 report found that Malaga city offers a 4.3% return with the highest (4.7%) in the Centre and Campanillas.
Rental rates have risen by 7.4% since last year and in March 2022, the average rent per square metre was €10.10 (Idealista). The most expensive rental properties in Malaga were in the Centre (€10.70) and the East (€10.80). After many months of price drops, rental rates have started to rise again in the centre.
Malaga province has 31,736 holiday lets according to INE calculations, the second-highest in the country and well ahead of destinations such as the Balearics and Barcelona.
Where’s the property market in Malaga going?
2022 has definitely started on the same track as 2021 when 91 properties were sold in the province every day last year. With the arrival of Vodafone and CitiBank in Malaga, along with continued foreign demand, this year looks set to post similar results. However, supply could be an obstacle – all the agents we have spoken to report that new listings are few and far between in the city, particularly in sought-after areas.
As to whether you should buy now, the answer will, as always, depend on your personal circumstances. Some buyers may want to take advantage of rocket-bottom mortgage interest rates and strong competition among banks for your money. Others might like to wait and see.
Whatever your reason and your timeline, one thing’s for sure – Malaga is a great place to live whether you buy or rent!
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