Property prices in Malaga city are currently higher than the real estate boom the Andalucian province enjoyed in 2007
High demand and low supply of properties to buy or rent is being seen as the main reason prices remain high in the capital. Although the rest of Spain continues to attract foreign buyers Malaga is surpassing all forecasts.
Malaga city’s housing costs have risen to all-time highs, surpassing those of the 2007 Spanish real estate boom. The information is taken from the most recent Fotocasa real estate index.
The maximum sale price for homes and apartments in Malaga city was 2,783 euros per square meter on average at the end of October, and the average rent price was 12.58 euros per square meter, both record highs.
Both the real estate sales and rental markets in Malaga City are reporting very significant, above double-digit, year-over-year growth. Property sales have increased by 13.9% year over year- the most since 2018.
While prices across Spain are generally 30% below their 2007 peak, Palma de Mallorca is the only other region to break records. Prices for rentals on the Spanish island have increased by 26.9%.
Real estate prices have been rising gradually for some time, but since July they have really begun to soar.
Fotocasa director Mara Matos found it odd that Malaga City’s purchase prices kept rising even as mortgage rates were rising. She did, however, make the argument that the high rate of emigration to the city and the scarcity of high-quality merchandise on the market are leading indicators.
Matos said that prices for rentals in Malaga city have already totally recovered from the decline brought on by the Covid-19 epidemic.