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Malaga province ranked second in Spain for highest mortgage loans

Malaga province ranked second in Spain for highest mortgage loans

In the past year the average amount homebuyers have had to borrow from the bank has risen by 10%, even more than in places such as Madrid and Barcelona

Cristina Vallejo

Monday, 4 December 2023, 11:02

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Malaga province has the second highest mortgage in Spain with an average of 191,551 euros, according to new data.

The only place with a higher average home loan in Spain is in the Balearic Islands, which recorded an average mortgage of 253,381 euros, according to figures from the National Statistics Institute.

The data shows that banks lent out nearly 275 million euros to homebuyers among 1,435 mortgages registered in Malaga province in September. Compared to a year ago, the average mortgage taken out in Malaga increased by almost 11% from 172,743 euros in September 2022 to more than 191,000 euros, latest data shows. Twelve months ago, banks lent 351.36 million euros to finance the purchase of homes shared among 2,000 mortgages.

While the total capital loaned has fallen by 21% year-on-year in Malaga province, the number of loans taken out has also dropped, by 30%. The average mortgage granted in Malaga a year ago was only the sixth highest in Spain. In addition to the Balearic Islands, it was also exceeded by Madrid, Barcelona, Guipúzcoa and Melilla. But among these provinces, the average mortgage registered a sharp rise of 11% only in Malaga. Before the pandemic, in September 2019, the average mortgage in Malaga stood at 139,548 euros, the seventh highest in Spain.

Possible explanations

According to Ferrán Font, director of studies at Pisos.com, Malaga's high mortgage comes down to the province having one of the highest prices per square metre in the country. Malaga province has also recorded some of the greatest increases in housing prices, with a boost in demand but low supply.

Font pointed out that Malaga has high mortgages due to municipalities where houses are extremely expensive such as in Marbella or Benahavís.

The proportion of properties that are paid for outright is also another factor, Font added. In September 40% of purchased homes were paid for upfront, with demand from foreign buyers influencing this proportion.

In Andalucía, after Malaga, the highest average mortgage is in Seville, with an average of 119,453 euros, almost the same figure as a year ago.

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