Property prices on Costa del Sol unlikely to fall in short term despite pandemic, say experts

Spain’s property prices are unlikely to fall in the short term, despite the market being frozen as a result of the pandemic, say the experts.

THE average price for a new home in Malaga will remain stable, at least in the short term, reveals the latest analysis report from consulting firm Savills Aguirre Newman, released yesterday (Tuesday).

Despite Covid-19, the report does not predict any foreseeable signs of a drop in prices, as a result of a shortage of properties. However, people planning to buy homes, now have have a ‘wait and see approach’ to see if property prices drop, so they can grab a bargain.

Both sales and rental prices, however, appear to have stabilised since last year. Again, the lack of supply of homes, has pushed rental prices up in the Costa del Sol. East Malaga is currently fetching the highest average monthly rents of around 1,026 euros per month, and those in the city centre get around 952 euros per month.

In fact, rental prices on the Costa del Sol have jumped around 20% since 2018 due to an increase in demand and a limited supply of flats. Areas with more affordable rents are in Alhaurín de la Torre at around 476 euros per month, Ciudad Jardín (672 euros per month) or Rincón de la Victoria (771 euros per month).