Malaga City Centre Falls Behind in Pace of Property Market Recovery

Malaga City Centre Falls Behind in Pace of Property Market Recovery

The property sales market has returned to the Costa del Sol capital, but while some areas are showing price growth, Malaga’s historic centre is lagging behind the overall dynamics.

Housing in the provincial capital has increased in price by 6.3% compared to the previous year, according to the latest Tinsa report, which includes data on new and resale properties. This is one of the most significant increases at the national level. Nevertheless, the city centre shows the largest decline - by 2.7%.

“In 2021, Malaga’s property market is experiencing substantial growth in the number of transactions and average prices, primarily due to high interest in the most sought-after residential areas - the eastern and western parts of the city,” explains Mario Garnica, director of Engel & Völkers Malaga.

Fotocasa data on the secondary market by districts reveals significant differences. While the centre still shows a price decline of 2.7%, the eastern districts recorded growth of 2.5%, and in the Palma-Palmilla and Puerto de la Torre areas, housing prices increased by 7.8%.

According to Garnica, Malaga’s historic centre is one of the areas most affected since the beginning of the pandemic due to the decline in tourist activity. This has led to properties previously intended for short-term tourist rentals being put up for sale.

While tourism recovery may help, another factor is likely to persist: “Interest in housing in the centre has decreased, as the overwhelming majority of properties do not have terraces or open spaces.” The eastern district and part of the western area show stronger prospects: land scarcity and high demand create price pressure.