Malaga city centre lags behind in terms of real estate market recovery

Sales activity has returned to the capital of the Costa del Sol, but while some areas are experiencing price growth, Malaga city centre is falling behind.
This is evidenced by the fall – 2.7%, the biggest drop.

Sales activity has returned to the capital of the Costa del Sol's golden mile, but while some districts are experiencing price rises of close to 8% year-on-year in the second quarter of 2021, Malaga city centre is lagging behind. Housing in the capital is 6.3% more expensive than a year ago, as stated in the latest Tinsa report, which includes data on new and used housing. This is one of the strongest rises at national level.
August 2021 showed an unusual increase in property transactions in the Valencian Region in Spain
"In 2021 the property market in Malaga is experiencing a significant increase in the number of sales and in the average price, mainly due to the high interest in the most sought-after residential areas, focused on the east and the west parts," explains Mario Garnica, director of Engel & Völkers Malaga.

Fotocasa's data on second-hand properties by district reveal big differences by neighbourhoods. While in the Centre there are still price drops of 2.7%, in other areas such as the East, they grew by 2.5%, and in Palma-Palmill or Puerto de la Torre they are 7.8% more expensive.
August 2021 showed an unusual increase in property transactions in the Valencian Region in Spain
According to Garnica, the historic centre of Malaga is one of the districts that has suffered the most since the beginning of the pandemic due to the fall of tourism activity. "This caused properties that were previously destined for holiday rentals to go on sale," he explains.

And although Garnica predicts that with the reactivation of tourism, there is another factor that could have come to stay and push up prices in the centre: "interest in housing in the centre has decreased, as the vast majority of properties do not have terraces or open-air spaces". On the other hand, he highlights the projection of the eastern district and part of the west, where the scarcity of available land and the high demand are causing price tension.


Property in Costa del Sol

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