Property prices keep rising in the provincial capital. / EFE

Housing prices in Malaga city are now higher than the real estate boom of 2007

The surge is more than almost anywhere in Spain and is being put down to high demand and low supply of property to buy or rent

SUR MALAGA.

Prices of housing - both to buy and to rent - in Malaga city have reached record highs, even more than in the Spanish real estate boom of 2007. The data comes from the latest Fotocasa website real estate index.

Malaga city ended October with a maximum sale price on flats and houses of an average of 2,783 euros per square metre and a letting price of 12.58 euros per square metre, both record figures.

Both the property sales and rental markets in Malaga city show very significant year-on-year rises, above double digits. In terms of property sales, it was 13.9% year-on-year, the highest since 2018. Palma de Mallorca is the only other place in Spain to reach records while the rest of the country on average is at prices 30% below the peak of 2007. In terms of rentals, prices have gone up by 26.9%.

Prices have been steadily increasing for a while but have really started to shoot up since July.

María Matos, director of Fotocasa, said it was strange that purchase prices in Malaga city continued to grow at a time when mortgages were getting dearer. However, she suggested that the reason is the high demand of people moving to the city and the shortage of good stock available to buy.

In rentals, she added that prices in Malaga city have now fully recovered from the dip during the Covid-19 pandemic.