The state of the residential market in Malaga

In recent years, the city of Malaga, located on the southern coast of Spain, has seen a significant increase in residential housing. This trend has continued into 2023, with the city experiencing a surge in new construction and high demand for existing homes.

According to local real estate experts, the residential market in Malaga has been bolstered by a combination of factors. One major contributor has been the city's growing reputation as a hub for tourism, culture, and business. Malaga's airport, which serves as a gateway to the popular Costa del Sol region, has seen a steady increase in international visitors in recent years. In addition, the city has become a popular destination for expats and retirees, drawn by its mild climate, stunning beaches, and affordable cost of living.

As a result, property prices in Malaga have been steadily rising. According to data from the Spanish Ministry of Development, the average price per square meter for residential property in Malaga was €1,887 in 2022, up 4.4% from the previous year. This is still relatively affordable compared to other Spanish cities like Madrid and Barcelona, making Malaga an attractive option for both domestic and international buyers.

New construction projects are also on the rise in Malaga. In 2022, the city approved several major developments, including a new residential complex in the up-and-coming neighborhood of Carretera de Cádiz, and a luxury apartment building in the trendy Soho district. These projects are expected to bring hundreds of new units onto the market in the coming years, further boosting the city's housing stock.

Despite the positive trends, there are some concerns about the potential impact of rising housing prices on the local population. Malaga has a large population of working-class residents, many of whom struggle with high unemployment rates and low wages. Some worry that the influx of wealthy buyers could drive up prices and push these residents out of their neighborhoods.

To address these concerns, the city government has implemented several measures aimed at promoting affordable housing. These include incentives for developers to build more affordable units, and regulations requiring a percentage of new developments to be set aside for social housing.

Overall, the state of residential housing in Malaga is strong, with high demand, rising prices, and new construction projects on the horizon. However, it will be important for policymakers to balance the needs of different segments of the population and ensure that the city remains accessible and affordable for all.