The real estate market in Malaga grows by 35.7% in new construction homes despite the general fall of 9.6%
The analysis of the real estate market in the province of Malaga during August 2024 reveals contrasting dynamics. According to data from the National Institute of Statistics (INE), the total volume of transactions registered a year-on-year decrease of 9.6%, with 2,789 operations carried out. This drop is mainly attributed to the used homes segment, which experienced a decrease of 20.3%, while new homes maintained a positive performance, growing 35.7% with 795 units sold.
New homes: an expanding segment
The new construction market continues to stand out as an engine of resilience in Malaga. In the first eight months of 2024, sales in this segment grew by 32.2%, reaching 6,317 transactions, compared to the 14.3% decrease registered in used homes, which totaled 16,602 transactions.
With this performance, Málaga is positioned as the fourth Spanish province in new home sales, surpassed only by Barcelona, Madrid and Alicante. However, the accumulated total of sales from January to August reflects a year-on-year drop of 5.1%, placing the Malaga market in a context of moderate deceleration.
The mortgage market: a mixed picture
At the same time, the mortgage market showed signs of recovery in August 2024, with a 24% year-on-year increase in the number of home mortgages, reaching 1,764 operations. This growth contrasts with the general trend of the year, since the accumulated mortgages from January to August (12,354) reflected a decrease of 5.1% compared to the same period in 2023.
Although the total mortgaged volume has increased by 24% year-on-year in August, the average amount of mortgages remained stable at €200,300, showing an adjustment in the proportion of mortgaged homes, which stood at 63.2%. In the accumulated amount of the year, the average amount rose 13.3%, reflecting a change towards larger mortgages in a market with fewer total operations.
Trends and challenges in the Malaga real estate market
The current dynamics of the real estate sector in Malaga poses significant challenges. The sharp decline in sales of used homes contrasts with the dynamism of the new construction segment, which continues to attract buyers despite a context of lower global activity.
In the mortgage market, the increase in the average volume of mortgages reflects a financing environment adjusted to higher value properties, although the proportion of mortgaged homes continues to decline. This behavior could be related to a more selective buyer profile or with greater economic capacity.
At the national level, Málaga maintains its relevance as one of the leading provinces in real estate sales, both in new homes and in total terms, ranking fourth in the national ranking.
Outlook for the future
The evolution of the Malaga market suggests the need to closely monitor slowdown trends, especially in used homes, while the new construction segment presents growth opportunities. This scenario also reflects the impact of current economic and financial factors, such as tightening credit conditions and changing buyer behavior.
Ultimately, the real estate sector in Malaga continues to be a strategic pillar for the local economy, although adjustments in certain market segments raise the need for adaptive strategies to face emerging challenges.
