Malaga’s property market booms: what are the average housing prices now?

Statista announced the most expensive cities in Spain for housing as the Balearic Islands, Guip├║zcoa, and Madrid Community. However, despite not making the top 3 on the list, Malaga remains one of the most expensive cities in Spain. Housing prices in Malaga are particularly high, but they recently reached a significantly higher rate.

Malaga housing prices continue to surge

Data reports that Malaga has seen a 3.2% surge in housing prices within the first quarter of the year. That is an extremely high surge, bringing the total rise in property prices to 9.9% in the last year. The rise in prices left many people wondering how much a square meter costs in Malaga province.

According to Tinsa, a real estate group, recent figures show that the average cost of a square meter in Malaga is 2.169 euros. This price surge beats all other cities in Andalusia, where the average cost per square meter stands at 1.531 euros. However, the recent increase in prices in Malaga not only beats Andalusia but also marks the largest increase across the whole country.

Compared to the previous financial year, the square meter price rose by 4%, the highest recorded increase in Spain. This increase led to a 11.1% increase over the last 12 months, with percentage levels differing depending on the district. However, Cadiz, a city near Malaga, stands at 2.379 euros per square meter. Although it’s not a sudden surge like in Malaga, Cadiz is now the most expensive city to buy a house in Andalusia.

Non-balanced housing cost and income growth

Residents are seriously concerned over the constant rising prices of housing in Malaga. Housing costs households 51% of their salary, making Malaga the second most expensive island next to the Balearic Islands. Overall, the average mortgage in the province of Malaga is around 180.000 euros. Additionally, the average monthly mortgage repayment costs around 900 euros. This data makes average mortgage prices in Malaga rank third most expensive nationally. The affordability crisis level varies from district to district, with district Teatinos residents consuming 56.5% of their income on housing.

With housing prices outdoing income growth, residents questions the sustainability of this rapid growth. Policymakers are expected to address this issue and come up with mitigating factors to reduce the affordability crisis of Malaga.

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