Málaga and Marbella remain important property hotspots

The Spanish economy grew by 2% in the third quarter of 2019. Annual growth for 2019, according to the International Monetary Fund, is estimated at 2.2%. Unemployment fell by 3.4%. The largest falls were in Madrid, Catalonia and the Balearic Islands. The Spanish real estate market continues to grow, thanks to cities and holiday destinations with some of the world’s best-priced residential properties. This, combined with its status as a destination for top visitors, its unrivaled quality of life and low cost of living, contribute to a lasting appeal. (Source)

Malaga

Compared to 2014, the number of transactions in the province of Málaga increased by 31% in 2019 (from 6,349 to 8,229). However, the number of sales, at 21%, is still lower than in the second quarter of 2007 (which were the peak of Spanish sales transactions). Compared to the first quarter of 2019, sales in the second quarter of 2019 increased by 9%.

Sales of new homes in the province of Málaga amounted to 11% of the total number of sales in the second quarter of 2019. In 2018 this number was 10%. The share has fallen considerably since the second quarter of 2009. At that time, 41% of total sales were new homes.

In the first quarter of 2019, the number of primary market sales transactions (more than € 900,000) in the province of Málaga increased by 8% compared to sales in the first quarter of 2018. Namely from 79 (2018) to 85 (2019) . The total number of primary sales has doubled over the whole of 2018 (349 sales) compared to the whole of 2014 (176 sales).

The total value of sales transactions, in the province of Málaga, decreased by 7% in the second quarter of 2019 compared to the same period in 2019. But compared to the first quarter of 2019, it increased by 17%. Compared to the second quarter of 2014, the total value of sales transactions has increased by 63%. However, it is still 27% lower than in the same quarter of 2007. (Ministry of Development, Spain)

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Malaga city

In the second quarter of 2019 (1,638 sales), the number of sales transactions in Málaga city decreased by 29% compared to the same period in 2018 (2,317 sales). The number of transactions, compared to the second quarter of 2014 (936 sales), increased by 75%. Compared to the second quarter of 2007, the number of sales is 32% lower.

Of the total number of sales in the second quarter of 2019, 7% was a new home in Málaga city. In the second quarter of 2018, the number of new homes was 11%. The share of new homes is considerably lower than in 20007, when 35% of the total sales was a new home. (Ministry of Development, Spain)

The average property prices in Malaga city increase by 4% annually. In September 2019 you paid € 2,050 per square meter. In Málaga city, prices have risen by slightly less than 35% in the last five years to September 2019. Prices have also risen in the nearby areas of Estepona and Marbella. Here you pay an average of € 2,166 per square meter (an increase of 8.5%) and € 2,897 per square meter (an increase of 7.8%). Benahavís showed a small decrease of 1%, you pay an average of € 2,839 per square meter here. From 2014, prices for real estate in these areas have risen considerably. Estepona saw prices rise by almost 47%, Marbella by almost 30% and Benahavís by 20%.

The average rental prices in Málaga city also increase annually by 4%. In September 2019 you paid € 9.90 per square meter. (Idealista)

Also have a look at our most up-to-date properties in Málaga city.

Marbella

The second quarter of 2019, compared to the same period in 2018 (1,221 sales), saw a 16% decrease in the number of sales transactions (1,029 sales) in Marbella. Nevertheless, sales increased by 24% compared to the first quarter of 2019 (829 sales). The number of transactions decreased by 10% compared to the second quarter of 2014 (1,141 sales). But is only 1% below the second quarter of 2007).

The number of new homes sold in Marbella in the second quarter of 2019 represented 11% of the total sales. In the second quarter of 2018 this number was 4%. In the second quarter of 2007, 22% of the total turnover was a new home. (Ministry of Development, Spain)

The average property prices in Marbella increase annually by 7.8%. From September 2019 you pay an average of € 2,897 per square meter. The average rental prices in Marbella fall annually by 2.4%. In September 2019 you paid € 10.80 per square meter. (Idealista)

Look here for our top 6 property deals in Marbella.

Foreign buyers in Málaga

In the second quarter of 2019, foreign buyers in the province of Málaga accounted for 28% of total sales. This number is comparable with the same period in 2018, when the share was 27%. In 2012, 24% of all buyers were of foreign origin.