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House prices in Malaga put local buyers out of reach

Housing prices in Malaga put local buyers out of reach
House prices in Malaga are still on the increase. Image: Wikipedia

House prices in Malaga have risen to such levels that local buyers are having to relocate to cheaper areas

The Observatory of Urban Environment (OMAU) has warned that in areas such as Huelin or El Limonar the population is also moving due to the difficulties of purchasing a house.

Another problem encountered by buyers is the competition from investor clients, who are able to pay in cash. Prices have risen 14.9% in the province and 11% in the capital, exceeding 2008 levels in many municipalities.

Due to the huge demand from buyers, Malaga’s average property prices have continued to rise in the fourth quarter of 2022.

According to the most recent study on the real estate market in the province released by the Urban Environment Observatory (OMAU), a government body, the frenetic pace of sales (transactions are the highest in 15 years) have caused prices to continue to rise, with an unusual 10.4% increase added throughout the fourth quarter in the case of the province and 6.1% in the capital, placing the year-over-year increase at 14.9% and 11%, respectively.

The OMAU has warned again that the Malaga real estate market has been behaving in ways that are very different from those seen in the rest of Spain for some time, with two competing demands: the typical demand of families on the one hand (to which each access to a mortgage is becoming increasingly difficult due to high prices and interest rate increases), and investors who see Malaga as a great location for their investment (and who in many cases pay cash for the home).

According to the survey, the real estate market in Malaga is still growing quickly despite the increase in loan rates precisely because of this duality of demand.

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