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House sales fell in Malaga province in 2023, but remained above pre-pandemic levels
Property

House sales fell in Malaga province in 2023, but remained above pre-pandemic levels

Transactions fell by 15% in November compared to a year earlier but, excluding the years immediately after Covid, one needs to back to 2007 to see better figures

Cristina Vallejo

Malaga

Tuesday, 23 January 2024, 14:42

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The number of property sales and purchases has fallen for yet another month. In the latest data for November 2023, some 2,827 real estate transactions were carried out in Malaga province, including the Costa del Sol, which represents a drop of 15.43%. This is a fall identical to that suffered in Spain as a whole: the 46,888 operations in the month across the country are 15.12% below the 55,245 of a year earlier. And at the same time there is a fall off in construction in Andalucía: the 9,857 sales and purchases of this year in the region are 15.36% below the figure for the same month of 2022.

One element that stands out when contrasting the figures for Malaga with those for Andalucía is that the province accounts for 28% of all transactions taking place in the region. Almost one out of every three homes sold in the region is in Malaga.

But how do the figures compare with other provinces in the Andalusian region? Cordoba and Seville suffered a greater year-on-year decline than Malaga, with the number of transactions falling by 23% and 20% in November, respectively. A similar situation occurred in Cadiz, which recorded a fall of 18%. In contrast, the falls in Huelva and Jaén were limited to 4% and 6%, respectively.

And there is another comparison that is also interesting. Despite the double-digit decline in real estate sales and purchases, these are still occurring at higher figures than those in the pre-pandemic years. The 2,827 transactions carried out in the province in November 2023 are below the 3,343 transactions of the same month in 2022 and are also less than the 3,221 of the same dates in 2021. But the latest figures released on Friday 19 January by Spain's INE national statistics institute are above the 2,422 transactions of the same month in 2019 and the 2,571 of 2018. In fact, to find higher levels of activity – with the exception of the two years that followed the pandemic – one has to go back to 2007, when in November there were more than 3,100 transactions.

This may explain the fact that, according to the real estate portal Idealista, Malaga has set record levels in the sale prices of used housing, with the price per square metre standing at 2,668 euros (after an increase of more than 14% year-on-year), which is above the average levels for the country (2,042 euros per square metre). In the eastern part of Malaga city, the price per square metre is more than 3,700 euros and in the city centre it exceeds 3,500 euros.

Also, between January and November last year, Malaga witnessed the signing of 32,115 real estate transactions, 17.75% less than in the same period of 2022, when these exceeded 39,000. But in the first eleven months of 2019 the number of sales and purchases was limited to 27,710 and in 2018 there were 30,472. In fact, the figures for 2023 (up to November) already exceed those recorded for the whole of 2019 (29,852) and are very close to those for the whole of 2018 (32,636).

At the national level, something similar is happening. The Idealista spokesperson Francisco Iñareta said: "The INE data continues to show a drop in the number of transactions, a trend that has continued throughout the year. Even so, the falls are not a disaster for the market, as they seem to be more related to the reduction in the supply available for sale than to a severe drop in demand. It is very likely that the next closing data for 2023 will bring the volume of transactions to just under 600,000 units and will be the second highest volume of sales since the bursting of the 2008 bubble, behind only 2022".

If we return to the monthly data, we can see that if Malaga has kept pace with the evolution of Spain as a whole in the overall figures, it has also done so across different housing segments: the fall in sales of new homes both in the country and in the province is 11%, while the drop in transactions of used flats is 16% in both areas. In Malaga in November 2023, 562 new homes were sold, down from 634 a year earlier; as for second-hand flats, the number of transactions was 2,265, compared to 2,709 in November 2022.

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