The housing market in Malaga is booming: sales have already reached the pre-pandemic level - and this is 20,600 transactions through August. The number of the signing of mortgage agreements has reached its maximum in a long time: in the first two quarters of this year, 13,154 mortgages were concluded in the province, which is 17.4% higher than last year, which is the highest figure since 2010. Moreover, the average amount provided to bank clients to finance home purchases is also the highest since the famous real estate bubble, which burst in 2008, led to a prolonged economic crisis that only began to be overcome many years later.
According to the latest figures published by the National Institute of Statistics (INE), from January to August, Malaga banks issued almost 2,100 million euros, resulting in an average mortgage loan of around 160,000 euros, which is very close to the record for a boom in the real estate market: In 2007, the average amount was 165 thousand euros, and in 2008, when the situation with the “bubble” came to its logical conclusion, this figure was at the level of 159 thousand. In 2009, when the crisis was already declared, the average indicator fell to 123 thousand euros. In the most challenging years of the recession (from 2012 to 2014), it dropped to about 100 thousand, only after which, from 2015, it began to grow gradually again.
When it comes to real estate sales, it is becoming clear that the current growth in the transactions number relates to the new house segment. It compensates for the decrease in the number of deals with secondary housing. Currently, the activity on the real estate market in Malaga and on the Costa del Sol remains very high. This year, 5,441 units were sold in Malaga in the new construction category, 70% more than last year and 41% more than in 2019.
On the other hand, interest in the secondary market remains below the pre-pandemic level. So, until August, 14,620 sales were made, which is 41% higher than 2020 but still 13% lower than the volume of 2019, when the coronavirus epidemic did not yet slow down activity.