Malaga is setting the trend in the real estate sector
By Mas Property
on Thu Feb 23 2023
Malaga is in fashion and creates trends. All the promoters have focused on this Andalusian city. Malaga has an offer of more than 7,000 second-hand and new-build homes, according to the real estate services company Activum Real Estate Consulting, where in its latest report it indicated an average of almost 15 homes sold per day.
The consulting firm Colliers affirms that Malaga presents, in the case of the new housing segment, the second highest absorption rate in the country with a rate of 133.5%, only surpassed by the 154% of the Balearic Islands and ahead of the range of 70 %-79% that have places like Madrid, Barcelona, Valencia or Seville. This rate confirms that all the homes that are built and delivered in Malaga are quickly absorbed by the demand, also including the stock that may have remained from previous months.
According to data from Activum Real Estate Consulting, Malaga has an offer of 5,397 second-hand homes. Most of the offer is found in the center, a total of 1,274 homes, followed by the East zone with 950 homes. The area with the lowest supply of homes is Martiricos-La Roca with 90 second-hand homes. In relation to new construction, there is an offer of 1,682 new construction homes spread over 27 promotions in the city of Malaga. Martiricos-La Roca stands out with an offer of 456 homes, followed by Puerto de la Torre, with 324 new-build homes.
The developers that stand out are AQ Acentor with 26.85% of volume in promoting new construction in Malaga city. Via Célere follows with 15.51% of new construction in Malaga city. Other large developers are also present in the capital of Malaga, such as Metrovacesa, Habitat Inmobiliaria, Aedas Homes and Avantespacia, among others.
To buy a home in Malaga, you have to pay, on average, 2,065 euros per square meter, after the 8.7% rise registered compared to December 2021, according to the Tinsa IMIE Local Markets statistics. These increases leave the price 14.8% below the highest level in the historical series -reached in the fourth quarter of 2008 at 2,425 euros per square meter. In this way, it is the Andalusian city whose house price is closest to the maximum of the bubble. Currently, the areas with the highest price per square meter, according to data from Tinsa, are the East area with an average value of 2,707 euros, followed by the Downtown area with an average amount of 2,414 euros, Teatinos Universidad 2,321 and Carretera de Cádiz with 2,043 euros. . For its part, Martiricos-La Roca is the area with the lowest price, around 1.
The Zeta District, also called the Postmillennial neighborhood, is one of the new urban projects in the city, «District Z is a new area that is going to be carried out in the Intelhorce area and will be mainly aimed at a younger audience, taking advantage of its proximity to the university environment. Teatinos is designed by and for Generation Z. It includes some 3,400 homes on 60 hectares of land. It is a district promoted by Urbania, of a sustainable nature. It already has closed purchase agreements with developers such as Aedas Homes, Vía Ágora and Habitat Inmobiliaria that have opted for this new area”, says Ignacio Ortiz, Director of Research at Activum.
Another large project is the planned construction of four skyscrapers with up to 34 floors for homes and offices, and four more towers for 400 VPPO, shopping areas and a 65,000-square-meter park. This construction will be located on the land where the old Repsol warehouses were located, a plot located next to Avenida Juán XXIII. “It seems that February 7 is the key date for the future of the auction of the towers that the Malaga City Council owns on the old Repsol land. There are three companies that have submitted an offer for the entirety: Stoneweg, Acciona and Urbania. Stoneweg has, at least, Rafael Moneo, Pritzker Architecture Prize winner. On the other hand, Urbania is accompanied in his proposal by another Pritzker, the Japanese Toyo Ito for one of the towers; by Morph Estudio for another tower and the commercial plinth, and by the Danish studio BIG (Bjarke Ingels Group) for the third tall building. Acciona presents its offer with a design by the Ortiz León studio” points out Ignacio Ortiz. According to the data handled by the Urban Planning Department, this is the deadline given to current bidders interested in buying the urban developments that the city has in that sector so that they communicate their decision to continue with the procedure or if they choose to leave him.
But not only Málaga is setting a trend in the purchase of housing, it is also for rent. At the real estate level, Malaga has consolidated thanks to the pandemic and the implementation of teleworking, since the Andalusian province has become a focus for digital nomads worldwide. This, added to the fact that it is also a growing destination for university students, has led Malaga to reach a return of 6.1%. It is high but, even so, it is one point lower than the national average (7.2%) and lower than that of other capitals similar to Malaga such as Alicante (7%) or Valencia (6.7%). This is because Malaga has one of the highest prices in Spain. The more expensive the house, the more you have to ask for rent to make it profitable and not everyone can afford it.
According to the Idealista real estate portal, the real estate sector in Malaga is out of control both in the province and in the capital, marking the all-time high in prices last December. 2,787 euros per square meter for sale and 12.2 euros per square meter for rent. If we focus only on the capital, Malaga ended the year with record prices: 2,346 euros per square meter for sale (8% more than the previous year) and 12 euros per square meter for rent (20.7% more than at the end of 2021). If we leave the housing market, the asset that gives the most profitability in Malaga capital are commercial premises, whose profitability rises to 10%, four tenths even higher than the national average. They know that the center, especially Larios, Nueva, Granada or Alameda Principal streets, pay large fortunes per square meter and where important operations are expected in the short and medium term. On the other hand, in Malaga there is a lack of offices to meet the growing demand from companies, so those who have one for rent have a practically guaranteed clientele. The profitability of acquiring one and leasing it was at the end of last year at 7.8% -the national average is 12.9%-. Regarding garages, profitability is 4.9%, two points less than the national average.
Source: el Economista, February 2023