Walter Finch
AN average two-bed flat on the Costa del Sol now costs an eyewatering €318,000.
It makes Malaga province the most expensive place to buy in Andalucia, with property prices on the Costa del Sol having rocketed by 17.2% in the past year, according to the latest report from property portal idealista – the highest figure since records began.
In Malaga city itself, a typical two-bed flat will set buyers back €289,000 (€3,620 per square metre), cementing its position as Andalucia’s priciest capital.
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The dramatic price surge on the Costa del Sol far outstrips the Andalucian average, where a two-bedroom apartment now costs €214,000 (€2,679 per square metre), up 19.8% over the past year.
Malaga ranks as Spain’s fifth most expensive provincial capital, behind San Sebastian at €500,000 (€6,250 per square metre), Madrid at €454,000 (€5,677 per square metre), Palma at €403,000 (€5,036 per square metre), and Barcelona at €399,000 (€4,989 per square metre).
Across Spain, used home prices jumped 15.3% in the year to September, pushing the average two-bed to €201,000 (€2,517 per square metre).
Francisco Inareta, spokesperson for idealista, warned that Spain is facing a ‘housing emergency’ with demand vastly outstripping supply.
“With current demand and the accumulated deficit of recent years, hundreds of thousands of new homes are needed to get out of the housing emergency affecting the property market,” he said.
“Most Spanish cities are at historic lows in terms of available properties, while demand continues to increase.
“Both phenomena are causing prices to rise out of control and thousands of families cannot find a home to live in.
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“We urgently need a realistic plan to build thousands of homes where they are needed.”
The price rises are only accelerating, with the annual increase of 15.3% in the third quarter surpassing the 14% rise recorded in the second quarter.
Spain has now reached a new all-time high for property prices.
Elsewhere in Andalucia, the average two-bed property in Almeria province costs €177,000 (up 12.7%), in Cadiz €195,000 (up 12.5%), and in Granada €169,000 (up 11.6%).
Only Jaen province bucked the trend with a 1.8% fall, making it the region’s cheapest at just €66,000 for a two-bedroom flat (€823 per square metre).
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Among Spain’s major cities, Teruel led the price surge with a 20.9% annual increase, followed by Guadalajara at 20%.
In Madrid, a two-bed apartment now costs €454,000 (€5,677 per square metre), up 19.4%, while in Valencia the same property costs €258,000 (€3,227 per square metre), up 19.2%.
San Sebastian remains Spain’s most expensive provincial capital where a two-bedroom flat costs €500,000 (€6,250 per square metre), followed by Madrid, Palma at €403,000 (€5,036 per square metre), Barcelona, and Bilbao at €297,000 (€3,709 per square metre).
Nine provincial capitals including Palma, Bilbao, Malaga and Valencia hit record high prices in September. Only Girona registered a price fall, down 3.5%.
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