22 March 2018 – 20 Minutos
The average price of housing in Málaga rose by 5.4% in 2017, according to the Residential Market report published by the international consultancy firm Savills Aguirre Newman, which also predicts that house prices will rise by between 5% and 8% this year.
The report reveals its forecast for this year is that prices will continue their growing trend thanks to the “strong behaviour of demand”. In 2018, the increase in property development activity and the construction of new promotions are going to continue to increase, which means that new residential areas in Málaga are going to be consolidated; this is already happening in the Martiricos area.
In terms of the main players in the residential market in Málaga, during 2018, the consolidation of financial institutions and servicers will continue, as it will of international funds with a vocation for making long-term investments.
For José Luis Sanz, the deputy director of Savills Aguirre Newman’s delegation in Andalucía, the residential market in Málaga has evolved “in a positive way, offering more modern and efficient projects, and with a clear focus on design and quality”.
Moreover, he added that the entry of international groups into the market has benefitted the sector. Currently, the product offered/demanded is a type of home that is characterised by, on the one hand, open plan spaces with large terraces in coastal areas, and, on the other hand, vertical designs that make efficient use of the available space in more urban areas.
The report analyses 113 developments in total, of which 82 are being marketed (…) and 31 have already been sold. The study counted 54 new promotions and, for the third year in a row, reported that no developments have been suspended or removed from sale.
The main areas of growth for new housing in Málaga are Teatinos and Pacífico (…).
“It is important to highlight the dynamism of the land market in the capital”, said Sanz, who added that “Over the last year, there have continued to be numerous, significant transactions involving residential land both in the Málaga metropolitan area, as well as in the neighbouring districts, such as Alhaurín de la Torre, Rincón de la Victoria and in the Churriana district of the capital” (…).
Last year, the average price of a home in an apartment block in the province amounted to €216,713, whilst the average price of a family house stood at €274,420.
In Málaga, the split by type of home is 78% homes in apartment buildings and 22% family houses. This increase in prices takes the average price per m2 of a flat/apartment to €1,727, with an average surface area of 125 m2, whilst the average price of a family home now stands at €1,616, with an average surface area of 170 m2.
With these average prices, the highest price recorded for the sale of a home in an apartment building in the Málaga-East area amounted to €820,000 (€5,622/m2) and in the centre amounted to €1,350,000 (€5,555/m2). In terms of family homes, a property was sold also in the Málaga-East area for €1,175,000 (€2,937/m2) according to Aguirre.
Original story: 20 Minutos
Translation: Carmel Drake
The post Savills Aguirre Newman: House Prices Will Rise by 5%-8% in Málaga in 2018 appeared first on Aura Real Estate Experts.
Source:: AURA Real Estate Experts