Malaga property market sets new record as sellers ‘find buyers within hours at never-before-seen prices’

Malaga is the most expensive region in Andalucia, where property prices have increased by 15% within the last 12 months.

The Costa del Sol hotspot now commands an eye-watering €3,775 per square metre for (not counting new builds) – the highest price since records began, according to the latest idealista property report.

Francisco Iñareta, spokesman for idealista, warned that properties entering the market are finding buyers within hours at never-before-seen prices, as Spain’s chronic housing shortage reaches crisis point.

He described it as a ‘perfect storm’ unprecedented even during the property bubble of 2007.

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“We had not seen price increases as this, even in the most tension moments of housing bubble”, the expert said. 

It’s the result accumulated housing deficits, the influx of thousands of households every year, the emergency of rental, falling interest rates, and lower financing.

Malaga province led with a 15% year-on-year increase as the regional average, whilst the capital city recorded a 14.7% rise, making it the priciest place to buy a home in Andalusia at €3,459 sqm.

The dramatic price hikes have pushed Andalucian property values to €2,518 sqm on average – a historic high for the region and a quarterly increase of 5.4%.

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Only Jaen bucked the trend, with prices dropping a modest 0.4%, making it the most affordable province at just €837 sqm.

Cadiz, which followed Malaga with a 12.3% rise, and Granada with a 10.3% rise. Almería, Sevilla, Huelva and Cordoba all recorded significant jumps ranging from 1.7% to 9.5%.

Spain is experiencing a national crisis as the demand for property far exceeds the supply. 

Madrid topped national price increases with a staggering 25% rise to €5,642 sqm, followed by Valencia’s 20.1% surge. 

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Barcelona, despite an 11.1% increase, remains cheaper than both at €4,920 sqm.

Experts warn that the chronic housing shortage in Spain is reaching a crisis point. As new properties enter the market, they are being snapped up within hours and at prices never seen before.

The government is under increasing pressure as 14 of Spain’s 50 provincial capitals hit record prices in June.

The Olive Press is a great source for Malaga News.