MÁLAGA – In a year in which the Spanish real estate market showed signs of cooling down due to a decline in the number of real estate transactions, house prices in the province of Málaga and the Balearic Islands rose by as much as 9.7%.
This brings the average price per square metre to €2,272, the highest level since 2008. This is evident from the latest data from the Ministry of Housing and Urban Agenda recorded by La Opinión de Málaga.
Tourist areas top the list
In addition to Málaga and the Balearic Islands, both known for their tourist appeal, other coastal areas such as Alicante, Santa Cruz de Tenerife and Valencia follow suit with similar price increases. These increases occurred despite the European Central Bank raising interest rates. Normally this has a dampening effect on the real estate market.
Sixth most expensive province in Spain
With an average price of €2,272 per square metre, Málaga is now the sixth most expensive province in Spain. The province still has Madrid, the Balearic Islands, Guipúzkoa, Barcelona and Vizcaya above it. In 2022, Málaga already surpassed Álava, which traditionally had higher prices. That year, Málaga exceeded the €2,000 per square metre mark for the first time since 2009, a price level not seen since the peak of the property bubble 2008.
Recovery after the crisis
During the economic crisis that followed the bursting of the property bubble, house prices in Málaga fell. The low point was around €1,450 in 2013 and 2014. Since then, prices have risen by 57% in the past ten years. That increase is only exceeded by the Balearic Islands.
Differences per type of home and municipality
New-build homes (up to five years old) saw their prices rise by 8.5% to €2,614 per square metre. That is the highest price in twelve years. The price of existing homes increased by 9.7% to €2,262.
Municipalities such as Torremolinos, Benalmádena, Málaga City, Fuengirola and Estepona recorded the largest price increases, with Torremolinos leading with an increase of 14.3%. Marbella remains the most expensive municipality with an average price of €3,037 per square metre. Inland, price increases are more moderate, while Ronda was the only municipality with a slight decrease.
Also read: Huge interest in the housing market in Málaga reconfirmed
