Linea Directa 200 LEFT COL CAR INSURANCE

PROPERTY SEARCH

Date Published: 03/01/2024

Malaga was the Spanish city where housing prices increased the most in 2023

ARCHIVED ARTICLE -

New homes cost an average of 3,000 euros per square metre in the Andalucia capital last year

Malaga was the Spanish city where housing prices increased the most in 2023

It seems that the Costa del Sol has lost none of its appeal despite rising interest rates and crippling inflation, and the demand for housing in the Andalucia capital is higher than ever. Last year, Malaga positioned itself as the Spanish provincial capital with the largest price increase for new homes, which jumped up by 7.2% and now exceeds 3,000 euros per square metre.

Despite the slowdown in residential market activity towards the end of 2023, over the course of 12 months the cost of new property has increased by 5.1% in Spain as a whole, according to the latest date from the Appraisal Society (ST).

Furthermore, these experts agree with the general consensus that house prices will continue to grow in the coming months and the appraisers forecast that during the first quarter of 2024, new builds will command 2,898 euros per square metre, which would represent and annual increase of 4.6%.

During the last twelve months, all autonomous communities across Spain have experienced annual increases, ranging between 2.5% in Castilla-La Mancha and 6.8% in the Balearic Islands.

By capital, Barcelona, at 5,156 euros per square metre, is now by far the most expensive place in the country to buy property. It’s followed by Madrid (4,385 euros) and San Sebastián (4,283 euros).

At the opposite extreme, Ciudad Real (1,301 euros/m 2 ), Cáceres (1,311 euros) and Badajoz (1,322 euros) have the lowest average amount.

The bad news is that Appraisal Society's accessibility index, which determines the balance between the average price of housing and the appropriate debt capacity for its acquisition continues its downward trend. This important marker currently stands at just 73 points, while the balance level is 100 points.

Also of interest: The Seven deadly sins of foreign property buyers in Spain... and how to avoid them

Image: Freepik

Linea Directa Bottom Article A-L CAR INSURANCE

staff.inc.and

Sign up for the Spanish News Today Editors Roundup Weekly Bulletin and get an email with all the week’s news straight to your inbox

Special offer: Subscribe now for 25% off (36.95 euros for 48 Bulletins)