GETTING on the high-demand property ladder in Malaga has become a Herculean task for locals, with buyers now needing nearly €100,000 in cash just to secure a mortgage.
A new report from property portal Idealista reveals the harsh reality behind Spain’s housing market, where the deposit and associated taxes present an insurmountable wall for those on an average income.
In the Costa del Sol capital, anyone looking to buy an average two-bedroom flat must stump up €96,651 before they can even get the keys.
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This massive upfront sum represents a 20% deposit required by most banks, plus an estimated 10% to cover purchase taxes, notary fees and registry costs.
It means the asking price for a typical two-bedroom property in the city sits at around €322,000.
Even if buyers manage to scrape together the cash, they will still face a monthly mortgage payment that eats up 37% of an average local family’s income.
Financial experts widely recommend that households spend no more than 30% of their earnings on housing costs.
Consequently, only 25% of properties currently on the market in Malaga are considered financially viable for locals earning an average wage.
The situation is even more extreme in Palma de Mallorca, which leads the country as the most punishing property market for residents.
Buyers in the Balearic capital need a staggering €147,116 in savings to purchase a two-bedroom home, with mortgage repayments swallowing up 46% of their monthly salary.
San Sebastian also demands a heavy premium, requiring €137,700 upfront, followed by Madrid at €117,793 and Barcelona at €103,172.
Data from the National Statistics Institute (INE) was used alongside current market prices to calculate the true cost of buying a home across the country.
While expat hotspots and major cities are pricing out locals, there are still pockets of affordability in other regions.
In the city of Zamora, buyers only need €32,996 in savings to access a mortgage, followed closely by Jaen at €34,596 and Lleida at €35,581.
In these cheaper provincial capitals, the monthly effort to pay off a mortgage drops to just 13% of an average family’s income.
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