Walter Finch
PROPERTY prices across Andalucia have rocketed by 15% in the past year, with Malaga cementing its position as the most expensive province in the region.
The Costa del Sol hotspot now commands an eye-watering €3,775 per square metre for (not counting new builds) – the highest price since records began, according to the latest idealista property report.
Francisco Iñareta, spokesman for idealista, warned that properties entering the market are finding buyers within hours at never-before-seen prices, as Spain’s chronic housing shortage reaches crisis point.
He described it as a ‘perfect storm’ unprecedented even during the property bubble of 2007.
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“We hadn’t seen price increases like this even in the most tense moments of the housing bubble,” the expert said.
“It’s the result of accumulated housing construction deficits, thousands of new households each year, the rental emergency, falling interest rates and cheaper financing.”
Malaga province led with a 15% year-on-year increase as the regional average, whilst the capital city recorded a 14.7% rise, making it the priciest place to buy a home in Andalusia at €3,459 sqm.
The dramatic price hikes have pushed Andalucian property values to €2,518 sqm on average – a historic high for the region and a quarterly increase of 5.4%.
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Only Jaen bucked the trend, with prices dropping a modest 0.4%, making it the most affordable province at just €837 sqm.
Cadiz followed Malaga’s lead with a 12.3% increase, whilst Granada saw rises of 10.3%. Almería, Sevilla, Huelva and Cordoba all recorded significant jumps ranging from 1.7% to 9.5%.
The surge reflects a nationwide crisis, with Spain hitting record property prices as demand vastly outstrips supply.
Madrid topped national price increases with a staggering 25% rise to €5,642 sqm, followed by Valencia’s 20.1% surge.
READ MORE: Expert warns investors looking to profit from Spain’s property boom against buying up ‘cheap homes’
Barcelona, despite an 11.1% increase, remains cheaper than both at €4,920 sqm.
The expert warned that properties entering the market are finding buyers within hours at never-before-seen prices, as Spain’s chronic housing shortage reaches crisis point.
With 14 of Spain’s 51 provincial capitals hitting record prices in June, the government faces mounting pressure to accelerate housing construction and tackle the affordability crisis gripping the nation.
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