Malaga Property Report October 2020

Welcome to the first of the 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. And then, there are the British buyers anxious to get residency in the city before Brexit at the end of December.

We’ve compiled this report in response to this demand for information. And as always, if you need any more, get in touch.

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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.

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Average prices

In Q2 2020, the average price per m² in Malaga was €1,740.2. This is 0.9% up on Q1 2020 and 1.3% higher than Q2 last year (Ministerio de Transportes, Movilidad y Agenda Urbana; figures based on valuations).

Tinsa (Spain’s largest valuation company whose data is based on valuations) reports that prices fell by 3.6% in the year to Q3 in Malaga city. They averaged €1,598 per m² and stood at 33.8% below their peak in Q2 2008.

Online property portals also report on changes in Malaga property prices. These are based on asking prices on the platform. In September, Idealista found that the average price in Malaga was €2,113 per m², a rise of 3.1% in the year but slightly down on prices for August

The areas with the highest price rises were Centre (up 5%), Carretera de Cadiz (up 2.9%) and East (up 3.1%). The Centre had the most expensive property with the square metre price at €2,823.

Biggest price hikes

The areas with the highest price rises were Centre (up 5%), Carretera de Cadiz (up 2.9%) and East (up 3.1%). The Centre had the most expensive property with the square metre price at €2,823.

Property sales in Malaga

The latest statistics for Malaga province (Q2 2020) from the Registrars Association are as follows:

  • 14,400 sales in year to August, down 28.7% on the same period in 2019.
  • In Q2, 867 new-build properties were sold.
  • Foreigners accounted for 27.14% of all purchases (third highest in Spain) with a majority of British buyers.

Rental returns in Malaga

In its quarterly statistics (figures for Q3 2020), Idealista reported that rental return for buy-to-let properties in Malaga was 5.6%. This is higher than both Madrid (5.2%) and Barcelona (4.7%), but lower than the average for Spain (7.9%).

In common with many Spanish cities, Malaga has seen the supply of long-term rentals rise sharply. According to Idealista, the number of available lets went up by 26.2% in Malaga city over the summer. Great news for those looking to rent accommodation in Malaga. Will it result in better returns though?

Rental rates remain more or less stable and in September, the average rent per square metre was €9.90. This figure is 3.3% higher than June and 0.4% higher than September 2019.

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Where’s the property market in Malaga going?

In the current covid-19 scenario, predicting anything economic is a challenge. General consensus is that the property market throughout Spain is in for a quiet autumn. Sales are unlikely to pick up until well into 2021, although prices don’t seem to be freefalling as some analysts expected when Spain went into lockdown in mid-March.

For the Malaga market specifically, we have sourced the following information.

  • “The real estate sector in Malaga has great potential right now. Employees and entrepreneurs can come here from all over the world. All you need is a good airport, highways and internet connection and Malaga is a winner in all of those.” Juan Fernández-Aceytuno, MD at Sociedad de Tasación.
  • “Reactivation of demand from locals and Spain and an increase in interest in homes with generous outdoor areas and space for a home office.” Savills Aguirre Newman, 200 days later in Malaga.

Should you buy in Malaga now?

Again, we don’t have a crystal ball and the covid-19 situation is volatile. Prices have, on paper, varied little and investors waiting for a flurry of bargain properties have so far been disappointed.

“Changes in property prices in Malaga will depend on how quickly the owner wants to sell.” Colliers International (July 2020)

Much, as always, will depend on your personal circumstances. British buyers wishing to become resident in Malaga to benefit from the withdrawal agreement before 31 December this year may be in more of a rush. Other buyers may want to take advantage of rocket-bottom mortgage interest rates and strong competition among banks for your money.

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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