Torremolinos sees highest property price hikes.
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2024 has seen falling house sales in the Costa del Sol as rocketing prices and high interest rates edge the market towards a burgeoning bubble.
Property sales have been slowing down in Spain, due mostly to high interest rates and increasing property prices. The cost of a house in the Malaga province has risen in 2024 faster than most other areas in the country with an 8.3 percent average rise in one year, signalling a potential bubble in the market.
Second-hand property increases price more than new
Malaga province is now the 6th most expensive province in the country. The average price per square metre in Spain is €1,895, while in Malaga we are looking at € 2,348, that’s 24 percent higher. New builds (less than 5 years old), in Malaga province are still not the most expensive having risen to an average of 7.3 percent to €2,792 per square metre, while older home prices rose by an astonishing 9.8 percent.
Prices are soaring all along the Costa del Sol with Torremolinos registering the biggest price increases at an average of 17.9 percent, Fuengirola at 16.8 percent, and Vélez-Málaga at 16.7 percent.
Need for a ‘state pact’ to build more homes
In order to avoid runaway price rises, attendees to the National Housing Congress last week called for a ‘State pact’ in order to sign off new laws enabling the building of more homes. President of the Junta de Andalucía pledged to push through new housing legislation for early 2025, and to work with central government on finding a solution to the housing crisis facing Spain.
The chairman of the National Housing Congress, Juan Antonio Gómez Pintado, who represents 95% of the real estate sector, said that the solution to the housing problem needs fresh efforts to create developments that are ‘more affordable, more agile and with more to offer.’
