Vélez-Málaga sees second-largest housing price increase in Spain

A recent Tinsa report highlights Vélez-Málaga as experiencing the second-largest rise in housing prices among Spain’s coastal towns. With a 10.7 per cent increase, the town is surpassed only by Orihuela, which leads nationally. This increase reflects a broader trend of rising property values, with 70 per cent of towns and cities studied showing annual price growth above the national average.

Vélez-Málaga Housing Prices Rise Above National Average

In the second quarter of 2024, Vélez-Málaga saw a significant 6.8 per cent increase in housing prices, the highest recorded during this period. Other towns with notable price increases include Motril, Cartagena, and Vigo, all seeing substantial gains.

10.7 Per Cent Price Hike Positions Vélez-Málaga Among Top Coastal Markets

The current national average for housing prices stands at €1,778 per square metre. Madrid as usual tops the list with the highest prices at €3,833 per square metre. Coastal cities and towns like Marbella and Benidorm, along with city areas around Madrid, Barcelona, and the Basque Country, are also among the most expensive.

Rising Demand Drives Vélez-Málaga Housing Prices to New Heights

This upward trend highlights the growing appeal of coastal and city areas in Spain’s real estate market. For buyers, these rising prices mean that securing property in popular areas like Vélez-Málaga may require acting quickly and budgeting more than anticipated. Increased competition and higher costs could impact affordability and availability.

For sellers, the increase in prices presents a favourable opportunity to capitalise on increased property values.

Tips for Buyers and Sellers in Vélez-Málaga’s Booming Market

For Buyers:

• Act Quickly: With prices rising, potential buyers should move swiftly to secure properties before they become more expensive. Working closely with a local real estate agent can provide access to new listings and help navigate the competitive market.
• Consider Nearby Towns: If Vélez-Málaga’s prices are outside your budget, exploring nearby towns like Motril, which are also seeing growth, might offer more affordable alternatives.
• Plan Your Budget: Rising prices mean you should be prepared for higher mortgage requirements. Ensure that your budget accounts for additional costs such as taxes, notary fees, and potential renovation expenses.

For Sellers:

• Leverage the Price Increase: With property values rising, now could be the perfect time to list your property. Make sure to consult with a professional for an accurate valuation and advice on staging your home to maximize returns.
• Consider the Future: While prices are rising, consider the long-term market trends. If you’re thinking of selling, it’s important to weigh whether you want to capitalise on current gains or hold on to your property for potential future increases.

Expert Insight: Real estate analysts recommend monitoring the local market closely as price trends can shift. Buyers and sellers should stay informed about national and regional real estate developments to make the most strategic decisions in this dynamic environment.

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