PROPERTY sales across Andalucia have dropped in the wake of spiralling asking prices, which have surged by another 10% over the last year to hit an all-time high.
The average two-bedroom flat in the southern Spanish region now costs €236,160, for a standard size of 80 sqm.
But the explosive double-digit growth is no longer concentrated on the expat-heavy Costa del Sol.
Instead, secondary markets are leading the boom, with Sevilla province recording a 14.7% annual hike and Almeria close behind at 14.3%.
Granada also saw a steep 13% rise, while Malaga province recorded a more modest 6.6% increase.
Despite the slower growth, Malaga remains by far the most expensive province in Andalucia, shattering its own records to reach €345,360 for a typical two-bed flat.
Jaen remains the cheapest province for buyers, where an equivalent 80 sqm property sits at just €70,320.
Experts warn that the soaring costs are actively pricing house hunters out of the market.
Francisco Iñareta, spokesperson for property portal Idealista, said the housing market has reached a ‘turning point’.
“The high prices reached by housing have expelled part of the demand,” he said.
He added that this pricing out, combined with more expensive financing, has caused a drop in sales.
Iñareta suggested that major capitals could soon see price stabilisation or even drops, while secondary markets that are still accessible will keep on growing at double-digit rates.
When looking specifically at capital cities, Cadiz saw the sharpest rise over the last 12 months with sellers asking for 11.7% more for their homes.
Malaga city recorded the smallest increase among Andalucian capitals at 4.1%, but remains the most expensive with a two-bed flat costing around €317,520.
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Sellers in Cadiz city are now asking €270,560 for a standard two-bed, followed by Sevilla at €234,640.
Jaen and Huelva are the most affordable capitals in the region, with two-bed flats priced at €117,280 and €139,680 respectively.
Across Spain as a whole, used housing prices rose by 11.8% year-on-year during the third quarter, putting the national average for a two-bed property at €234,400.
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