Record Rent Rises in Costa del Sol

Renting a property in Malaga province was practically mission impossible a year ago and the situation is only getting worse.

The supply continues to be scarce and the price continues to rise, which makes it practically unfeasible for a family with a normal salary to afford a property. This is reflected in the latest data from the real estate portal Idealista, which highlights that the average rental price at the end of 2023 in the province of Malaga is €13.8 per square metre, which represents an increase of 13.6% over the previous year and a new all-time high.

Idealista offers data from 14 locations in the province – where it has a significant sample of flats for rent – and in all of them it is more expensive to rent a property now than it was a year ago. In fact, we are at record highs in Malaga city and Casares.

No money left for food

Paying €13.8 per square metre per month, on average, would imply a cost of €1,380 for a 100 square metre flat. This is the monthly salary of many people in the province and doesn’t allow for food, clothing, electricity, water, etc.

Several of the municipalities included in this study even exceed that figure. The most expensive is Marbella, with an average price of €16.2 per square metre (7.9% more than a year ago). Torremolinos and Benalmádena are already paying €14.1 per square metre and Benahavís €15.5.

For years it seems that it cannot grow any more and, even so, it continues to do so. There continues to be a shortage of supply, due to the proliferation of short term holiday rentals and demand continues to grow in a province like Malaga that is attracting workers from other parts of Spain and abroad.

2024 will be worse

“2023 has been a bad year for people looking for a rented house. Supply continues to evaporate with no sign that it is going to increase in 2024 and prices are at an all-time high in most markets”, said Francisco Iñareta, spokesperson for Idealista.

This expert adds that, “the constantly changing regulations on renting and their culmination with the approval of the housing law last May caused the current cataclysm: the disappearance of the investor in rental housing and a significant withdrawal of owners who have decided not to continue renting their homes in view of the implication that landlords are the problem, when they are actually, the most important part of the solution”.

“As a result, many landlords are turning to seasonal rentals as a way to keep their properties rented. The measures adopted to reduce prices and protect the most vulnerable families have caused just the opposite: supply is lower than ever, prices are at historic highs and the most vulnerable tenants have been left completely unprotected” Iñareta added.