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Date Published: 25/10/2023

Downward turn for house prices in Malaga and the Costa del Sol

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The popular Spanish coastline has just had its first drop in property prices since 2021

Downward turn for house prices in Malaga and the Costa del Sol

Recent data on Spanish property prices shows that house prices in the province of Málaga and on the Costa del Sol are beginning to fall after two years of steady increases.

House prices in the area have been going up since the Covid-19 pandemic, when demand surged due to foreign buyers who were reevaluating what was important to them in life came out to Spain looking for a place in the sun that would offer a better quality of life.

Now, though, market analysis from asset valuation company Gesvalt has found that there was a decrease of 3.8% in average house sales in the province over the past three months.

The average price per square metre of homes for sale has fallen from 2,446 to 2,352 euros.

In Malaga city, average house prices currently stand at 2,291 euros/m2 and many other popular towns on the Costa del Sol have all seen price decreases over the last three months.

Benalmádena went from 2,367 euros/m2 to 2,326; Estepona, from 2,127 euros/m2 to 2,103; Fuengirola, from 2,190 euros/m2 to 2,163; Mijas, from 2,252 euros/m2 to 2,143; Torremolinos, from 2,174 euros/m2 to 2,111; and Vélez-Málaga, from 1,336 euros/m2 to 1,297.

However, experts do not think this could be the start of a general slowdown or drop in house prices. While it’s true that house prices cannot rise forever, there is still a lot of new construction and a lot of interest in the area that should keep prices going up, but hopefully not too quickly.

Meanwhile, the Gesvalt report indicates that rental prices are continuing to rise, both in Málaga city and across the province as a whole. On average, the monthly cost per square metre now stands at 13.70 euros in Málaga province, an increase of 2.8% quarter-on-quarter and 12.9% year-on-year, and at 14.25 euros/m2 in Málaga city, an increase of 17% from a year ago.

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