The Spanish property market remains strong. Malaga demonstrates exceptionally high sales rates. According to the National Institute of Statistics (INE), the number of transactions in September was 3,218, the highest figure this month since 2007 and one of the highest in the entire historical period. On the other hand, compared to August 2018, the number of sales and purchases decreased slightly (3,246), the first decline monthly since April this year.
The growth in transactions was the deferred demand that arose in 2020 due to strict restrictions against the background of a problematic epidemiological situation. Those who wanted to buy real estate but could not - to some extent contributed to the acceleration of the sector’s development in 2021.
However, the market dynamics are still excellent, and if there is a slowdown, it is minimal. Sales in September are 42.96% higher than in 2020 and 55.5% higher than in 2019, hence the highest in 15 years.
Compared to last year, the percentage growth is slightly higher than the national rate of 40.6% and 53,410 units sold - lower than in Andalusia, with 11,843 transactions, up 55% year on year.
The province of Malaga still significantly outperforms Andalusia and Spain in terms of sales per 100,000 inhabitants: 194 versus 177 at the regional level and 142 in the country.
The fact of sales growth brings the annual GDP to the level before the pandemic. From January to September 2021, 23,819 properties were purchased in the province of Malaga, which is almost 7,000 more than in 2020 (up 41% in percentage terms) and 1,276 more transactions in 2019 (up 5.6%). However, it should be borne in mind that 2019 was a year of a slowdown in the real estate market. If we take 2018 as a basis, then since the beginning of the year, transactions are still 5.26% lower.
In addition to the deferred demand, which is now making itself felt, another explanation for the dynamism of the real estate market is the revival of new housing construction. In September, NIS registered 849 transactions in Malaga, 24% more than in 2020 and three times more than in 2019. This figure is not too far from 984 in 2009 and 1,053 in 2007, at the peak of the brick boom.
The sale and purchase of secondary housing are at a level close to the record. In September, 2,629 transactions were concluded, the second-best indicator since 2007 after May 2018.