Buying a house in the capital of Malaga is today even more expensive than at the time of the bubble, in the first decade of the millennium. So says the Idealista real estate portal, taking as a reference the property prices it published in the capital in August. The average price of second-hand homes, according to this platform, in August was 2,279 euros per square meter, its new all-time high.
Idealista compared the prices of all Spanish capitals and there are only six where it is more expensive to buy a house now than during the bubble. And Malaga is one of them. The others are Madrid, San Sebastian, Las Palmas de Gran Canaria, Palma de Mallorca and Pamplona.
The good news for her is that Malaga is not one of the most expensive capitals in the country despite its continuous rise in prices. In San Sebastián, for example, the square meter is 5,126 euros, while in Madrid it goes up to 3,973 euros or in Palma de Mallorca to 3,431 euros. In Barcelona, buying a home costs an average of 4,085 euros per square meter, but Barcelonans can take a hit because it is 4.5% lower than its maximum cost dated September 2018.
Why does the price in the capital of Malaga keep rising? There are several answers, but the clearest is that there is more demand than supply and the market is still tight. Malaga attracts thousands of people. Some only come for tourism for a few days and prefer to stay in a holiday home rather than a hotel or other type of establishment. In other words, many owners have withdrawn their house from sale and manage it, alone or through specialized agencies, such as tourist rentals because it leaves them with fast and safe money since it is debited before the stay.
On the other hand, there are thousands of other people who come to Malaga to stay working and living in sectors such as hospitality, tourism or the large technological multinationals that have opened offices here in recent years.
If there are more people looking for an apartment and fewer apartments for sale, the price skyrockets. So much so that even organizations such as the Urban Environment Observatory of Malaga are already warning about the gentrification process which take place in the city center or the great difficulty of many Malagasy people, especially young people, in being able to buy a house in the capital, forced to go to more remote neighborhoods or even to other localities. Malaga is already experiencing, from a real estate point of view, the same phenomenon as other major Spanish or European cities.