MÁLAGA – We previously wrote about the madness at the Malaga housing market and on the Costa del Sol. In the first quarter of this year, the number of homes sold here rose by more than 54% year-on-year.
The cause of this enormous interest in houses in southern Spain is sought in the continued arrival of (inter)national investors and the desire of many to change homes after the pandemic. In the first quarter of this year, 11,165 transactions were conducted in the province. That’s a 54% year-on-year increase and the highest figure since 2007, the last major fiscal year before the property bubble burst.
Significant increase in the number of mortgages taken out
The interest in the housing market in Málaga continues to grow. This is also reflected in the growing number of mortgages taken out. That increased by 22% between January and July in Málaga compared to the same period last year. With a total of 13,616 mortgages, this is the highest figure for this period since 2010. The rise in Euribor does not seem to be an obstacle for those who want to buy a house in Andalucia. The data comes from INE statistics updated on Wednesday and confirms the level of the real estate market on Costa del Sol.
Increase in Málaga contrasts with moderation of growth at national level
This strong increase in mortgage demand in Málaga contrasts with the moderation in growth that appears to be taking place nationally. Looking only at the month of July (the last month with published data and in which the Euribor was already on the rise), the number of mortgages in Spain rose by 2.3%, while in Málaga it was 19.2%. Total growth at the national level was around 15%, while in Málaga, as mentioned, it was 22%.
Average Mortgage Amount
House prices also continue to rise. This can be deduced from the average amount for which mortgages were taken out. In the province of Málaga, it was €176,000, compared to €159,000 in the same month of last year and €144,000 in 2020.
The most expensive homes are in Marbella
Within the province are the most expensive properties in Marbella. There, an average of €3,340 per square metre is paid. That price is very close to the historical record of €3,353 per square metre in June 2006. Also in Fuengirola, the cost of housing is now at the highest level at €3,086 per square metre, making it the second most expensive city in the province. Malaga becomes. The third is Benahavis with €3,019 per square metre.
No worries about a real estate bubble
According to Fotocasa, the fact that the great interest in buying a house in Málaga and the increased mortgage interest are driving up prices will not lead us to a new real estate bubble. The real estate portal points to various indicators for this. First, there is no credit accumulation and banks strictly meet the criteria for providing mortgages. They are in a healthy position since they tightened their lending strategy after the 2008 crisis. There is also a low debt burden, a lower default rate and a much lower level of speculation on housing than then, according to Fotocasa.
Buying a house in Andalucia
Because of the relentless and great interest in real estate in Málaga, are you also considering buying a house in Andalucia? Keep in mind that the Spanish buying process is different than in most other European countries. The notary has very limited legal responsibility and Spanish real estate can be very complex. Many – especially foreign – buyers were faced with unpleasant surprises.
You don’t want any legal problems when buying a house, apartment, holiday home or villa on the Costa del Sol. Those can be very drastic when making one of the biggest investments in your life. Avoid any headaches and enlist the help of an independent lawyer specialising in real estate in Andalucia. With your interests first, they examine all possible legal snags of the second home in Andalucia of your choice. Moreover, in a boyant market, you are stronger with a specialist lawyer in your corner.
If you choose an office that, in addition to legal services, also offers tax and financial services, such as applying for a mortgage in Spain, you can be sure of good guidance from start to finish during the purchase process. Finally, due to language and cultural differences, it is advisable to use a multilingual law firm. This way you can discuss all your wishes in your native language. The Spanish lawyers take care of the legal side and you will be kept informed in your own language by their English-speaking colleagues. So transparent!
Related post: Foreigners are buying more houses in Spain than ever
