Central Málaga residential market

Covid19 Impact and Opportunities
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Residential Market | Central Málaga residential market

2019 was characterised by the launch of large new developments that increased the residential supply, in some cases, targeting the prime market. The marketing of all the projects was aimed at both national and international buyers.

The new projects were incorporated in different parts of the Carretera de Cadiz district, the central hub of Teatinos and the area of Tomillar, along with the upper part of Colinas del Limonar in Málaga Este.

During the last 12 months, the initial supply was concentrated in the districts of Puerto de la Torre-Teatinos (2,454 residential units), Carretera de Cadiz (596 units), Málaga Este (462 units) and Rincon de la Victoria (450 units).

2019 maintained the positive growth of supply in most districts due to the start of new projects, reaching the same figures in absolute terms as in 2018.

The most notable decreases in the housing supply took place in the areas of Bailen-Miraflores (-51%) and Alhaurin de la Torre (-20%).

The average price of multi-family units in the city grew by 18% compared to the previous year’s figures, reaching €307,635, with an average capital value of €2,425 per sq m.

The limited supply of single-family housing units led to an increase in the average price, which stood at €344,011, 25% higher than that registered in 2018. The average capital value amounted to €1,800 per sq m.

Evolution of residential supply. New developments
Evolution of average price. New developments


The launch of the Picasso Towers project considerably boosted the average capital price of the Carretera de Cadiz district,

to €3,786 per sq m, placing it in first position in the city. This is followed by the Centro and Málaga Este districts, with €3,092 per sq m and €2,731 per sq m, respectively.

On the other hand, the districts that registered the lowest average price were Ciudad Jardin (€999 per sq m), Churriana (€1,314 per sq m) and Alhaurin de la Torre (€1,596 per sq m).

With regards to single-housing units, the highest average capital values were recorded in the Málaga Este district (€2,895 per sq m), Alhaurín de la Torre (€1,613 per sq m) and Churriana (€1,488 per sq m).

Multi-Family housing Highest €/sq m MAverage €/sq m
Centro 6.147 3.092
Carretera de Cádiz 11.356 3.786
Málaga-Este 6.667 2.731
Puerto de la torre 3.808 2.024
Ciudad Jardín 1.398 999
Cruz de Humilladero 3.000 1.742
Alhaurín de la Torre 3.512 1.596
Churriana 2.019 1.314
Bailén-Miraflores 3.657 1.750
Rincón de la Victoria 2.960 1.786
Variation in Average Price (18-19) 18%
Average Price (€) 307.635
Average Price (€/sq m) 2.425
Average Surface Area (sq m) 127
Stock over Initial Supply 41%
Single-Family housing Highest €/sq m Average €/sq m
Málaga-Este 5.740 2.895
Puerto de la torre 1.478 1.345
Alhaurín de la Torre 2.132 1.613
Churriana 2.114 1.488
Rincón de la Victoria 1.329 1.329
Variation in Average Price (18-19) 25%
Average Price (€) 368.515
Average Price (€/sq m) 1.897
Average Surface Area (sq m) 194
Stock over Initial Supply 53%

HIGHLIGHTS

  • Unsatisfied demand seeking new developments in the city

  • Healthier and less-leveraged sector

  • High take-up of supply in new developments

  • Most professionalised and customer-focused sector

  • Despite the uncertainties, the business opportunities in Málaga continue to attract all kinds of profiles of different nationalities

  • Residential sector, key to economic recovery

  • Smaller price adjustment for new developments than second-hand housing

  • Approximately 215,000 sq m of buildable space currently marketed by SAVILS AGUIRRE NEWMAN in central Málaga

  • High levels of liquidity in the market. Investor appetite and financial capacity

  • 2,000,000 sq m of buildable space in urban planning with final approval that includes 12,265 planned open market housing units distributed across 10 areas of activity

  • 1,000,000 sq m of buildable space currently in processing, including 5,063 open market housing units distributed across 8 more areas of activity

  • High interest in residential projects aimed at “BTR” from large groups

  • Approximately 550,000 sq m of buildable space transacted on land in central Málaga

  • Search for land opportunities before the uncertainty caused by Covid-19

COVID19

IMPACT

OPPORTUNITIES

Stabilisation of sales rates and prices has accelerated (without any falls projected)

Málaga has a solid foundation that will aid in a quick recovery

The Covid-19 health crisis has allowed us to view the demand from an effective angle

Streamlining of licenses and urban planning procedures

Slight change in the demand trend in terms of housing characteristics

Public-private collaboration, with great interest on the part of City Councils and the Andalusian Regional Government to provide aid to developers and buyers

Financing for developers becomes more difficult

Different demand profiles, increasingly international

Decrease in the number of permits due to the uncertainty caused by Covid-19 and this trend towards stabilisation since 2018. 36% less than H1 of the previous year

New significant developments in the city in the short to medium term

Greater impact on second-hand housing than on new developments

BTR, the great opportunity to promote quality rentals

Low supply of new developments compared to the previous cycle

Central Málaga accounts for 22% of all housing transactions (second-hand and brand new) in the province

Search for land opportunities in the face of uncertainty caused by Covid-19