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Last year ended with sustained growth in house prices for Malaga province, which has been particularly noticeable in the case of the provincial capital. This is the headline news in the latest report by property appraisal company Gesvalt, which has reviewed the last three months of the year and now places the price per square metre in the city at 2,678 euros. This represents an increase of 4.6% during the last quarter of 2024 and an increase of 15.6% overall compared to the prices reflected in the statistics for the same period in 2023. During that year the price of flats in the city increased by 6.8%, which means that in 2024 the pace of the rise in housing prices has doubled, an issue that is monopolising political debate at a local level.
One only has to look at the curve in the growth line for the cost of housing in Malaga city to discover that, during 2024, it has grown its upward trend. The city's trend is even higher than the provincial average that, nevertheless, places the square metre at a similar price of 2,629 euros, which represents a rise of 10.3% during the year that has just ended. Adding that rise to the previous two years means an overall rise of 21% over the last three years.
According to Gesvalt's statistics, Malaga is the fifth Spanish provincial capital to have the most expensive property prices, only surpassed by San Sebastian (4,303 euros per square metre), Barcelona (3,761 euros), Madrid (3,699 euros) and Palma de Mallorca (2,929 euros per square metre). At the regional level, Malaga city can only be compared to the situation in Cadiz city where the average housing cost is 2,359 euros per square metre. However, it is well above Seville that holds an average price of 1,812 euros per square metre.
For Fernando Soler, Gesvalt's representative in Malaga, this notable increase in the price of housing during 2024 "was due to the confluence of the two factors that affect the prices of all goods: a shortage of supply, both of new developments and previously-owned homes, and a very high demand, especially from foreign buyers and the digital nomad-type tenant who moves to our province."
As for rental properties, Gesvalt's latest report reveals a certain easing in the unstoppable rise they have experienced in recent years. In the case of the average figure at provincial level, the monthly price of rents stands at 15.19 euros per square metre compared to 15.27 euros in the third quarter of 2024. This is a practically irrelevant decrease, but it is the first fall to occur in the last three years. Likewise with Malaga city the cost of renting fell slightly from 15.75 euros per square metre to 15.51 euros.
With regard to this easing up in rental prices, Fernando Soler believes that this is "a minimal and not very significant reduction, as rental prices are increasing over the longer term." He added: "This difference between quarters could be due to the fact that the third quarter of the year is a period of high rental demand, coinciding with the summer and also with people returning from summer holidays."
In fact, rental prices have experienced an average increase of 10% over the past year, both in Malaga city and the wider province, an increase that Gesvalt's Malaga representative attributes to the fact that the supply of available rentals is "minimal" and also because the "legal insecurity of non-payments and the possible occupation of their homes" is holding homeowners back. "They prefer to put their properties up for holiday rental because it gives them a higher return," said Soler.
At the provincial level the price of housing continues to soar in Marbella, with 3,409 euros per square metre in the case of homes for sale, and 19.20 euros per square metre in the case of rentals. However, despite these high amounts, the cost of both housing formats has continued to rise in 2024 in the town of Marbella: 7.3% in the case of homes for sale and 3.5% in the case of rentals.
In the rest of the main towns on the Costa del Sol, the price per square metre for sale is around 2,500 euros and has experienced an increase of approximately 10% over the past year. Fuengirola stands out, where the price of apartments for sale (2,444 euros per square metre) is up 14% compared to the end of 2023. At the other end of the province, Vélez-Málaga offers homes for much less: 1,542 euros per square metre for sale (12% more than a year ago) and 7.22 euros per square metre for rent (6% more than at the end of 2023).
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