Prices of new constructions still out of reach of average buyers.
Credit: Freepik.
There are 8 towns in the Malaga region where prices of newly-built properties have been rising most noticeably, above 6% each year.
Malaga city, the capital itself, has seen a 6.5% rise in the price of new builds. But, an even higher surge in prices has happened in Benalmadena with prices are 7% higher than this time last year. It seems the Costa del Sol town is having a boom.
Malaga city, now the most expensive metropolis in Andalusia, will close the year with an average square metre costing €2,337, whereas the next most expensive, Seville costs a median of €2,254 per square metre. Marbella, Estepona, Torremolinos, Fuengirola all registered rocketing price tags for new builds this year too.
The good news
The improvement in this index confirms a recovery of optimism in the property sector in Andalusia, breaking with the negative trend of the last year and a half, a period in which the European Central Bank (ECB) has implemented a highly restrictive monetary policy to combat strong inflationary pressures in Europe. In fact, the recent de-escalation of interest rates, started in June by the ECB, is acting as a stimulus to gradually reactivate demand, both in terms of sales and mortgages, for the acquisition of housing.
and the bad.
On the Accessibility Index of the Appraisal Society, an indicator that determines the balance between the average price of housing and the borrowing capacity for its purchase, taking into account the median income of employed citizens, Andalusia is one of the ten autonomous regions whose index does not reach 100 points (or the break-even point). This means that an average Costa del Sol citizen earning an average salary, would not be able to afford an average new home without going into even more debt than is considered reasonable. Bad news for the young people who attended the protests in Malaga several weeks ago.
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