Housing prices continue to rise in Malaga and along Costa del Sol with no sign of slowing down
The latest property market review by real estate appraisal company Gesvalt reveals how prices have rocketed and which municipalities in the province are the most expensive for sales and rentals
The housing price thermometer in Malaga province continues to rise. This is reflected in the latest price report from property appraisal firm Gesvalt, which shows an average cost of 2,839 euros per square metre for homes for sale. This figure represents a 14% increase over the figure recorded in the second quarter of 2024 and a 30% increase over the same period three years ago in 2022. In the last three months alone, housing for sale has risen on average by almost 5% in the province, with rentals not far behind.
With a 5.4% increase during the months of April, May and June, the cost of rentals has now reached an average of 16.62 euros per square metre in the province, according to Gesvalt data. This represents a year-on-year increase of 10%, which translates to a 47% increase when compared to the same figures from three years ago.
In Malaga city the situation is identical, with an average price of 2,851 euros per square metre for homes for sale (14% more than a year ago) and monthly rents of 16.52 euros per square metre (9% more than in 2024). These increases are not exclusive to the Costa del Sol province: Gesvalt's latest market review records similar increases in Tenerife (15.4% year-on-year rise in homes for sale), Alicante (up 14.6%), Valencia (+14.2%) and Madrid (+15.8%).
At the provincial level, in terms of homes for sale, the municipality of Marbella remains the most expensive, with an average cost of 3,496 euros per square metre. However, the year-on-year price increase in Marbella is the least notable of the Costa del Sol towns with over 50,000 inhabitants, representing only a 6% increase compared to the same figure from a year ago. Among property for sale, Fuengirola takes the lead with a year-on-year price increase of 19.5%, now bringing the price per square metre to 2,707 euros.
As for the rental property market, Marbella is also the most expensive, with an average of 21.52 euros per square metre per month. However, the largest increase among the main towns in Malaga province is Velez-Malaga, where it grew by 18.5%, now costing 8.75 euros per square metre per month.
Fuengirola records the largest price increase in apartments for sale and Vélez-Málaga the highest increase in rentals.
How long will these price growth levels continue? Gregorio Abril, regional director for Andalucía and Extremadura at Gesvalt, does not foresee a change in this trend for the second half of this year. "Everything points to sales and rental prices in the city of Malaga continuing their upward trend. The consolidation of demand far exceeding existing supply, together with the attractiveness of the Malaga market and the growing national and international interest in housing in the area, make it unlikely that a short-term correction will occur", he stated to SUR.
According to Abril, "although recent initiatives to increase the supply of subsidised and affordable housing are a positive step forward, their impact this year will still be gradual and limited, so pressure on prices will remain high."
