Costa News Spain: Malaga to get a huge low-cost housing development

After a 30% increase in average property prices over the past five years, many Malaga residents are finding it difficult to get on the property ladder.

The shortage of new constructions and the growing population have only exacerbated this problem, as demand is far greater than supply. With an average price per square metre at €3,237, Malaga has become one of the most tense real estate markets in the country, only just below Madrid, Barcelona and San Sebastian.

It has been long-requested that the solution be found in building subsidised housing initiatives, which are key to relieving pressure on the market. In Malaga city, Bucéfalo Gestión has announced the launch of Residencial VPO Santa Ana, a project of 167 reduced-price homes in the new development of Cortijo Merino. With prices starting from €180,088 + VAT for two-bedroom homes.

VPOs are affordable flats that are often built on land granted by local authorities. They resist property speculation because they keep the price low.

VPO Santa Ana Residential, located in Cortijo Merino – one of Malaga’s expansion areas with the highest projection – will have a total of 240 units. The strategic location of this area, which has direct access to main communication routes, and the future extension the metro, is a key factor in the urban development of Malaga.

The project includes the creation, near the A-357 highway, of parks, gardens, shops and schools. It also includes a health center.

The rise of property prices in Malaga is a hot issue that has been discussed for many years. Protests took place in 2024 in the heart of the city, calling on the local government for action to help ease the burden on those who study and work in Malaga but are limited in their options for housing.