The hype in the real estate market of Malaga does not stop in whipping up the hype. Demand and sales are high not only in the provincial capital, but also in the outback. According to the final data, 2022 ended with a 13.5% price increase for the region, which fixed the average bar at 2,790 euros per square meter.
Thus, buying a house today in Malaga will cost an average of 300 euros more expensive than at the beginning of 2022. An average house that can be found on the local market with an area of 80 square meters will cost about 223,000 euros today. A year earlier, the price for it was at the level of 197,000 euros.
The price growth is obviously impressive and it is not going to slow down, despite the fact that the pace is already 3 times higher than the average for Andalusia and Spain in general. At the national level, the price increase for the year was 5%, reaching 1,920 euros per square meter. At the level of the autonomous community of Andalusia, which includes the province of Malaga, the price increase was 5.7%, which raised prices to the level of 1,870 euros per square meter.
The data above were reflected in the Idealista report for December 2022. The company's methodology is based on an analysis of the prices of a wide base of offers published on the company's portal. Atypical ads and ads with non-market prices were excluded from the statistics. It is based on data on villas and single-family houses and only active objects. Offers of any type that have been in the database for a long time, but attract little attention are excluded from the review. The entire array of information is compiled using the median recalculation in each individual market.
In Malaga alone, today there are about 55,000 active ads for the sale of real estate. The average price per square meter in Malaga, as mentioned above, is about 2,790 euros. Prices are higher than a year ago and generally record-breaking on the scale of a decade. In the provincial capital of the same name, at the end of 2022, the price per square meter was at around 2,350 euros, which is 8.1% more than a year earlier. However, these are all averages. The extremes show a noticeable distance. For example, in Alameda, you can buy a house at a price of 579 euros per square meter, and in Benaavis — for 3,976 euros.
In general, Idealista experts point out that the situation in Malaga is completely out of control, especially in comparison with other regions of the country. Prices are already 900 euros higher than in other areas of Andalusia. The second place in the autonomous community in terms of prices is occupied by Cadiz, where the cost per square meter is at the level of 1,630 euros. The gap is more than obvious. Seville ranks third with 1,470 euros per square meter, and the fourth is behind Granada with 1,440 euros. Jaen closes the top five — 1,000 euros.
One of the main factors of Malaga's growth is its economic and industrial development. The province and its capital attract many workers from different parts of Spain and many investors, as well as expats, from abroad. Of course, the tourism sector also plays a significant role. Demand significantly exceeds supply and the supply itself is quite scarce.
At the same time, it is becoming increasingly difficult for local residents to buy new housing due to the current price level. According to the tax authorities, the average earnings of residents of Malaga is at the level of 18,000 euros per year. It is not difficult to calculate how much an unacceptable luxury for many is the purchase of a new home. The openness of the local market to foreign buyers has been the subject of particular condemnation from the population in recent months.