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.
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% |
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
JOSÉ LUIS BRAVO
Residential Salesjoseluis.bravo@savills-aguirrenewman.es