Due to the scarce supply of new construction, the average price of housing in Malaga rose by 20% in 2018, according to the report Residential Market Malaga international consulting Savills Aguirre Newman, which figures in 260,457 euros the average price of a multi-family home, while the average price of a single-family home reaches 344,011 euros. The residential market in Malaga was characterised in 2018 by its consolidation and growth, thanks to the boost provided by the entry of large national developers and the return of local developers.

This increase in prices puts the average price per square metre of a multi-family home at 2,159 euros, while that of a single-family home is 1,800 euros. By area, the highest average prices have been recorded in the Centro district (3,337€/m²), in Málaga Este (2,817€/m²) and in Puerto de la Torre-Teatinos (2,066€/m²). On the other hand, the districts with the lowest average price were Ciudad Jardín (1,060€/m²) and Alhaurín de la Torre (1,594€/m²).

This price increase has responded, in addition to the shortage of supply, to the rise in construction costs (in some projects up to 40% of the final price of the home), the increase in prices impact on the sale of land, the slowdown in obtaining construction licenses, as well as increased demand from both investors and final buyers.

In terms of sales rates, in 2018 the multi-family home recorded very good data, with a total of 33 promotions that completed 100% its marketing. The average time to market for a residential project of 56 units on average was just over 19 months, representing a percentage of monthly sales of 5.2% since it began to be marketed.

Single-family dwelling

The promotion of single-family housing was concentrated in Malaga East, Puerto de la Torre and the areas surrounding the city as Churriana, Alhaurin de la Torre and Rincon de la Victoria. Specifically, the initial offer in Alhaurín de la Torres was 192 dwellings, in Churriana 142 and in Puerto de la Torre 83 dwellings. Meanwhile, the highest average prices were recorded in Málaga Este (2,844€/m²), Puerto de la Torre (1,955€/m²) and Alhaurín de la Torre (1,620€/m²).

The average marketing period for a single-family home was 16.5 months for a typical development of 22 units, a monthly sales percentage of 6.1%.

Second-hand housing

According to the report by Savills Aguirre Newman, the scarce supply of new construction in the market and its increasing prices are directing demand towards the second-hand market. Over the past year there have been increases in both the supply and demand for homes of this type, with a supply of between 5,500 and 6,000 homes in the districts covered by this report.

In terms of prices, Malaga East, the Central District and the Cadiz Road formed the market podium with the highest average prices in the city (3,312 €/m², 2,896 €/m² and 2,292 €/m², respectively). On the opposite side are the districts of Ciudad Jardín, Bailén Miraflores and Alhaurín de la Torre (1,694€/m², 1,692€/m² and 1,654€/m², respectively) with the lowest average prices.

During the last six years, the buying and selling of houses has not stopped growing. With respect to 2013, the number of transactions carried out in this type of housing has grown by 155%. During 2018, the second hand accounted for 89% of the homes sold in the city.

Residential for rent

In Malaga, renting follows the trend observed at national level and there is an increase in the number of homes that live on rent, although the market is in a complex situation from the point of view of supply, as there is no professionalized market, with most of the supply in the hands of individuals.

This offer of rented housing is very focused on multi-family housing and Savills Aguirre Newman estimates that the offer of long-stay rented housing (including exclusive rented buildings) is between 1,000 and 1,300 homes.

In 2018, the most demanded areas were the central zone and its surroundings, the Cádiz Road and the Torre-Teatinos Port. In recent years, both supply and demand have shifted from the historic centre to neighbouring areas, which have more competitive prices and good communications with the city centre and the main office areas. This displacement is due to the boom in tourist housing in the historic centre and the consequent detriment of long-stay rent. The higher profitability of tourist rental has been the key to this change.

The scarcity of quality supply and the boom in tourist rental have raised the rental price in recent years. In general, the average price of multi-family housing has grown steadily and steadily between 2-3% annually. Málaga Este (1,150€/month), Carretera de Cádiz (961€/month) and Centro (896€/month) have been the districts with the highest incomes during 2018, while the areas with the most accessible incomes are Alhaurín de la Torre (614€/month), Ciudad Jardín (695€/month) and Rincón de la Victoria (762€/month).

The report by Savills Aguirre Newman also points out that the typology of exclusive long-stay rental buildings has not yet been consolidated in the city of Malaga. Proof of this is that only in 2018 has been registered the entry into the market of a new building of this type in the western part of the city, which has an extensive waiting list. Malaga only has eight buildings of this type, all of them occupied almost 100% and with waiting lists that in some cases exceed the year.

Source : Savills Aguirre Newman