The Costa del Sol, located in the lively Andalusian region of southern Spain, boasts a stunning blend of upscale living, picturesque landscapes, an infusion of art and culture, and the dynamic Malaga’s mortgage market.
At the heart of this paradise lies Malaga, a city that has become a hub for both locals and a growing international community. It’s not just a place to call home but a lifestyle to fully embrace.
Malaga’s popularity: A surge in property purchases and rental prices
Malaga has attracted a diverse group of individuals, including tourists, expatriates, and digital nomads, all seeking their place in this bustling city. This influx has intensified the competition for housing, driving rental prices to unprecedented heights. The rental prices have skyrocketed to 14.25 euros per square meter, a 17% increase from just a year ago, positioning Malaga as the pinnacle among Andalusian destinations in terms of rental expenses.
The increasing popularity of Malaga has also triggered a surge in property purchases, as seen in the significant rise in secured mortgages. From January to July of this year, completed mortgages increased by 22% compared to the same period last year, totaling 13,616 mortgages—the highest since 2010.
Foreign interest in housing has consistently risen, with 14.94% of housing acquisitions made by international and non-resident homebuyers in Andalusia. This impressive figure marks the second-highest result in historical data, suggesting that the rise in Euribor has not deterred prospective buyers.
Solid investments and policies boost Malaga’s status
Significant investments in infrastructure and policies encouraging financial companies have solidified Malaga’s status as the main destination for profitable residence on the Costa del Sol. The Residency Program Investment in Spain is an efficient option for those seeking a residence in this exciting location. Ranked seventh out of 26 programs in the 2023 Global Residency Program Index, the Spanish Golden Visa offers an opportunity for a prosperous investment in the heart of Europe. These initiatives attract domestic investors and global stakeholders, further raising the region’s profile on the global stage.
Despite staggering biennial growth, property prices have recently seen a slight drop for the first time in two years on the Costa del Sol and in Malaga, suggesting potential opportune timing for buyers. Although rental prices continue to rise due to increased demand, the market remains favorable for buyers, with rising demand outweighing dwindling supply and driving an increase in prices.
Exploring other investment opportunities in Costa del Sol
Areas such as Estepona, Marbella, and Benahavis stand out as prime destinations within the Costa del Sol, each offering diverse new developments tailored to varied property buyer needs. Estepona is currently ranking second with a 4.6% increase in inhabitants compared to 2022, maintaining impressively low unemployment rates and a thriving job market.
These figures depict a vibrant, multicultural hub experiencing exponential growth. While areas like Marbella reflect high demand and soaring prices, untapped regions offer exceptional investment opportunities. The coming months will undoubtedly unveil new trends and opportunities.
Conclusion: Costa del Sol’s growing real estate market
Malaga’s status as a prime real estate market continues to evolve, promising further growth and potential in the months ahead. Investors and individuals looking for a place to invest or live should definitely keep an eye on Malaga’s mortgage market and real estate.
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