Foreign buyers are boosting the real estate market in Malaga
In the province, the second hand market moves at a similar rate to places like Madrid and Valencia, with a year-on-year increase in prices of 12%
The data reveals that the real estate sector in Malaga is beating, again, strongly. Demand and price growth are currently moving at similar rates to those detected in the Madrid capital or Valencia, with increases in the prices that are higher than 10% in June compared to the same period the previous year, according to the Real Estate Index of Fotocasa, which is based on second-hand offers on the portal. This was explained to SUR by Beatriz Toribio, Director of Studies and Public Affairs of the company as follows: «The second hand market has led reactivation of the sector, because it is much more attractive housing at the price level, is taxed with fewer taxes, and there is much more supply.»
What is happening in Malaga? As a result of demand, especially the push of foreign buyers, prices rebound twice as much as in the rest of the country. At the national level, the real estate market grows at a rate of 6%, and in the province, at 12%. In Malaga, this rise in prices reaches 19%, «a fact that we do not see except in Madrid and few other cities,» says the director of Studies of Fotocasa. «The recovery of the real estate sector is concentrated in certain places, which are Catalonia, Madrid and the islands, and then in certain very specific points of the coast; one of them is Malaga,»
According to the figures provided, Malaga presents a price-rhythm which is very different from the rest of the Andalusian provinces; with double-digit increases compared to Granada, which follows in second place, with a growth of 2%. In addition, 11 of the 15 municipalities where housing prices rose the most are in Malaga, placing the price per square meter at around 2,200 euros.
According to Toribio, who participated in the presentation of a real estate studio in Marbella yesterday, these data reflect that Malaga, with the Costa del Sol at the head, is a «very hot» market at the moment «as a result of the interest it arouses not only to national demand, but also the foreign buyer.”
When questioned if this situation could be the prelude to a new real estate bubble, Toribio was adamant: “There won’t be a new real estate bubble at a general level in Spain, because prices are far from what we saw in those years and because there is no bubble of funding; banks are cautious when granting credit with a mind to the past, but it’s true that we must be very attentive to spots like Malaga with strong increases that are not healthy.”
There are several factors pushing overheating prices according to Toribio. On the one hand, the sharp fall experienced during the crisis — prices fell in certain areas more than 40% — and the strength that takes the purchase as an investment, both from the foreign buyer, that in the case of Malaga is fundamental, but also from the national one. According to Fotocasa, 11% of those who in the last year who purchased a house in Spain looked for the acquisition of ahe house as a business.
Toribio believes the trend is moving towards price normalization, although in Malaga, it will be delayed. How much? «I still believe that in what remains of 2018, we will continue to see strong increases in the price of housing, in Malaga in general and in Marbella in particular.»
Specifically, with regards to Marbella, the person in charge points out that the recovery of prices in the purchase and sale operations started earlier than in the capital. However, it is in the rental market that Marbella stands as one of the first cities where the maximum prices prevailing in 2007 and 2008 were reached. Thus, Marbella is at maximum price levels since 2016, when the rest of the country has begun to reach those maximums in cities such as Madrid and Barcelona in 2017 and 2018.
Source: Dirario Sur.