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Construction of new housing and offices next to the railway station in Malaga city. Marilú Báez
Number of new mortgages signed in Malaga is up 34%, some 10 points more than rest of Spain

Number of new mortgages signed in Malaga is up 34%, some 10 points more than rest of Spain

More than half of the properties puchased in the province are paid for with a property loan

Cristina Vallejo

Malaga

Monday, 24 July 2023

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Malaga is experiencing something of a mortgage boom, with 1,686 contracts signed in May, more than 34% higher than in April.

New INE national statistics institutes figures, published on Friday 21 July, also showed that in Spain, nearly 33,400 mortgages were signed in May, some 23.5% more than in April - meaning that new mortgages registered in Malaga province are 10% higher than the rest of the country.

Last May there were 10% fewer mortgages registered in the province. But in Spain the year-on-year fall is around 24%, in what is its biggest drop since January 2021.

Call for caution

Director of studies at pisos.com, Ferrán Font, however, called for caution and said that the underlying trend in the mortgage market is downward, towards moderation, and that hasty conclusions should not be drawn from the Malaga's strong figures.

It is important to see how the numbers evolve in successive months, he added. Patricio Palomar, from AIRE Partners, said that the real estate market in Malaga has not hit bottom and said that there are still nine months to go before seeing better figures more consistently.

An upturn observed at national level and with greater results in Malaga - also limited to the shortest term, down to monthly figures - is only temporary, Palomar added.

From Ibercaja, Víctor Royo also pointed out the year-on-year drop in mortgage signings in Spain, which is 24%, and said that there has been a high growth in the mortgage market in the past two years due to the savings accumulated during the pandemic, or the low interest rates.

"This means that, effectively, in 2023 the market has been reduced," he said, before predicting: "In 2023 the market will have shrunk by approximately 20%, although it is important to note that in 2022 the market growth was abnormally high".

Cumulative figures for the year

This year, between January and May, some 8,243 home mortgages have been signed in Malaga, 14.5% less than in the same period of 2022. Meanwhile, the drop in Spain is 12% from the almost 193,000 that were signed in the first five months of 2022 and the nearly 170,000 of the same period this year. But the improved performance recorded in the last month has led to a slight closing of the gap between Malaga and the country, the statistics showed.

In Andalucía, there were 37,549 mortgages signed in the first five months of 2023, about 7.2% less than in the same period of 2022. If only the data for the month of May is analysed, then the upturn is about 30% compared to April. But compared to the same month, the drop is more than 6.5% in the region.

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