Malaga province housing prices slow down for the first time in three years

After years of unchecked price increases, data suggests that the Malaga province housing market has finally slowed down. The latest report from valuations company Gesvalt shows a freeze in the average price of homes for sale in the province, with levels not seen since the first half of 2023.The report puts the average price of homes for sale in the province at 3,147 euros per square metre, representing a mere 0.1% change compared to the first quarter of the year.

Puntos clave

01Year-on-year, the increase is 10.8%, but this is 5% lower than the 16% increase in the first three months of this year.In Malaga city, where the average price per square metre has exceeded 3,000 euros since the beginning of this year, prices have increased by only 1.4% from one quarter to the next (from 3,064 euros in the first three months of this year to 3,108 in the following three).
02The year-on-year increase is also similar, at 9%.At the provincial level, from one quarter to the next, prices are virtually identical in Benalmádena, Estepona, Fuengirola, Marbella, Mijas and Vélez-Málaga.
03Only Torremolinos has registered a slight increase of 1%, reaching an average of 2,904 euros per square metre.For Gregorio Abril, Gesvalt's regional director for Andalucía, these figures reflect "a change in the cycle".
04"We are in a moment of transformation where the market is self-regulating due to factors attributable to the financial burden of buying a home.

We could say that, at higher prices, housing becomes less accessible," Abril said.According to him, after several years of sharp annual increases, the moderation of these rises indicates "a sign of maturity in the market". "In other words, this slowdown is a direct response to demand, which we see decelerating. This isn't due to a lack of buyers, as interest in Malaga (both national and international) remains very strong, but rather because the financial strain on households has already exceeded the advisable limit, causing a drop in the number of sales, which is what's forcing prices to slow down," Abril explained.It's worth noting that, home sales fell by 10% during the first quarter of the year in Malaga. Transactions involving second-hand homes declined by 11%, while those involving new construction fell by 6%."We are seeing that some demand is decreasing or buyers are taking more time to consider their purchasing decisions.

Buyers are no longer willing to accept just any price and are more rigorously analysing the actual value of properties," Abril said. According to him, buying is no longer such a profitable investment, forcing the market to slow down to balance supply and demand. This is also beginning to affect the rental market, albeit more slowly. "We believe this could be healthy for the market," he added.In the case of rentals, the price increase continues, although slightly less pronounced than in previous quarters.

Publicado por Sur in English

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