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Property price hikes in Malaga show signs of slowing down

Property price hikes in Malaga show signs of slowing down

Housing ·

A report by the consultancy firm Gesvalt shows that in the first quarter of the year house prices in the province only grew by 0.3%

Jesús Hinojosa

Malaga

Wednesday, 19 April 2023, 15:43

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A report by the consultancy firm Gesvalt shows that Malaga is the only Andalusian province in which the price of homes for sale barely increased during the first quarter of 2023, with just a 0.3% increase. This tiny rise was also seen in other provinces such as Valencia and Gerona, and in the Balearic Islands, but in the case of Malaga it is particularly significant due to the continuous rise in prices that has been recorded over the last few years, above the national and Andalusian average. In the case of Malaga city, the rise in the last three months is barely 1.4%.

Gesvalt regional director for Andalucía and Extremadura, Gregorio Abril, said that this slowdown in the rise in prices may be due to a greater supply of available housing on the local market, both new builds and existing stock.

"In the case of Malaga city, we can talk about more than six thousand homes currently available on real estate portals, and about forty thousand that are offered on the Costa del Sol," Abril said.

However, the regional head of Gesvalt stressed that, despite the rise in interest rates and the increase in the financial effort to buy a property in Malaga province, the number of sales and purchase transactions continues to rise, which means that the year-on-year price increase is still above 10% in the Malaga market. "The demand goes by areas and some are still very sought after by buyers," he said.

General secretary of the Association of Builders and Developers (ACP) of Malaga, Violeta Aragón, said the price of housing in Malaga "cannot continue to rise permanently" and that it was "logical" that the sector is beginning to show signs of some moderation and balance. "There is not going to be a drop in prices, there is still not enough housing supply for the demand we have, but it is likely that the rise in prices will slow down in search of a balance in the market," Aragón said.

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