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Malaga has seen a dramatic rise in its property values over the past 12 months. Official figures The growth in new and second-hand housing in the city, and in its popular Costa del Sol towns is comparable or even greater than that seen in other major cities.
Malaga’s capital is experiencing the largest increases in housing prices due to new construction
Recent residential developments have experienced a particularly strong appreciation. Malaga has seen a significant increase in property values for properties that are less than five years old. This is reducing the gap between Malaga and other premium markets, such as Madrid or San Sebastian. This rapid rise places Malaga above other cities in Andalucia such as Sevilla or Valencia, while the price range of Bilbao is more comparable.
Some coastal areas now command some the highest figures nationwide. Marbella Estepona Fuengirola Torremolinos and other towns have seen massive price increases. This has made the Costa del Sol one of Spain’s most expensive residential areas. There are now several locations in the Costa del Sol that have prices comparable to those of cities.
Increases of double digits in the region
Around the surrounding towns, there have been consistent upward pressure too. The residential value of many coastal and inland locations increased in double-digits. The demand for housing in the province was also reflected in areas further away from the coast, such as parts of the metropolitan suburbs.
Malaga is gaining momentum in comparison with other Spanish cities. Madrid and San Sebastian continue to be the leaders in some segments, but Malaga’s growth rate is notable because it was so rapid within a short timeframe. Barcelona, Valencia, and Seville all showed moderate increases in contrast.
As demand continues to grow, accessibility concerns arise.
Malaga is now firmly positioned as one of Spain’s most popular and premium property markets. The entry point for buyers is now much higher than Andalucian and national averages. This raises concerns about affordability.
The rapid change in the local economy is causing a lack of salary increases, and this could lead to a displacement of residents into more affordable suburbs. The market’s rapid change is evidence of intense buyer demand, driven by lifestyle appeals and investment potential.
Industry observers fear that such a condensed increase in growth might reshape patterns of long-term resident along the Costa del Sol. As demand shows no signs of slowing, stakeholders are closely watching to see how policy and supply measures can address the growing affordability gaps in this southern hotspot.
