Is Malaga’s Housing Market Spiralling Out of Control?

Is Malaga’s housing market becoming unmanageable? A recent report on the real estate sector reveals a concerning trend in the capital of the Costa del Sol.

The latest study, published by Idealista on Wednesday, August 15, confirms that Malaga is among the five most expensive Spanish cities for sharing an apartment, writes Malaga Hoy.

Malaga Fifth Most Expensive In Spain

The average cost for a room in a shared apartment is €400 per month, which according to the Idealista report, the price of this type of rental in Malaga has increased by 14 per cent in the last year.

This is despite the fact that nationally, prices have slowed due to a sharp increase in the supply of rooms in shared apartments (34 per cent). The increase in Malaga is much higher than the average recorded in Spain (3 per cent), where the current average is €350 per month.

Ahead of Malaga, the most expensive provincial capitals for shared room apartments are Barcelona, with an average of €485 euros per month; Palma, with €475; San Sebastian and Madrid, both with €450 euros. Malaga and Bilbao are in fifth place, both with €400, closely followed by Pamplona at €395.

In contrast, Ciudad Real is the cheapest city among those analysed at €180 euros per month, followed by Badajoz, €199, with Zamora, Palencia, Lugo, and Cáceres all at €200.

The highest price increases in percentage terms over the past twelve months have occurred in Avila and Palma, both with an increase of 19 per cent, followed by Castellon (16 per cent more), Malaga (14 per cent) and Seville, Cadiz, and Pamplona (13 per cent). In Barcelona and Madrid, prices have risen by eight per cent and seven per cent, respectively.

Only in San Sebastián has the price of this product been reduced in the last year, with a fall of two per cent. It remained unchanged in Palencia, Segovia, Cáceres, Salamanca, Huelva, and Almería, according to the report.

The profile of a person who shares an apartment in Spain continues to be “similar” to that of twelve months ago, with an average age that has risen to 34 years. They do not smoke, are not allowed pets, and prefer living in the centre of large cities.