REPORT
Savills Research
Spain Research – March 2020
Málaga Residential
2020
José Félix Pérez-Peña
Andalucía Director
+34 952 06 27 82
jose.perez-pena@savills-aguirrenewman.es
Key aspects
of the residential market
Factors that will determine the future of the city
Malaga has been undergoing
unprecedented transformation for several
years. With good transport links by land, sea
and air, the city has a wide oering of cultural
activities such as museums and galleries, putting
it on the same level as other major cities in
Europe. Furthermore, its historic centre, which is
pedestrianised, has resulted in reduced pollution
alongside increased commercial and business
activity.
The residential market is a good indication of
all these changes, with the approval of esteemed
projects such as Torre del Río, La Termica,
Martiricos and Colinas del Limonar, as well as other
new projects, namely the future developments
of Sanchez Blanca, Santa Rosalia and the former
Repsol land plots. These will breathe new life
into the city, as they will not only alleviate the
demand for quality housing, but also include the
construction of large green areas and extensive
parks, bringing a larger focus to the city.
Malaga has clearly set its sights to the future, with
aspirations to grow into a great city. The new trend
in the city's residential market is the development
of multi-family housing projects, an ecological
and future-oriented solution that aims to position
Malaga among the large international cities.
The areas where the residential development
is concentrated are Puerto de la Torre-Teatinos,
Carretera de Cadiz and the Este district, which
stand out for their good transport links and wide
variety of services available to residents. In addition
to these areas of expansion, the centre and its
immediate surrounding areas continue to attract
the interest of developers and end buyers.
The rental market, expanding in all major Spanish
cities, is not an exception in Malaga. However, this
is still a pending matter, as it is still very limited
in certain areas due to the expansion of holiday
housing. The city requires quality and professional
rental housing stock to accommodate a demand
that has been growing in recent years.
4-5
New multi-family
We examine in greater detail the type
of residence that is growing the most
6
New single-family
We focus on the single-family home
7
Sales rate
We analyze the sales rate for the
residential market
10-11
Second-hand
Growth, prices and current situation
of the most traded housing in the city
12-13
Rental markets
The rise of this "lifestyle" comes into
the picture. What is your position in
the city?
Contents
15
Contacts
Your Residential and Analysis Team in
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Foreword
Malaga’s residential market has
continued to grow over the last
few years, brought about by the
strong economic situation, the
growth in tourism and the
significant cultural attraction.
2019 was characterised by the
launch of large new
developments that increased the
residential supply, in some cases,
targeting the prime market. The
marketing of all the projects was
aimed at both national and
international buyers.
The new projects were
incorporated in different parts of
the Carretera de Cadiz district,
the central hub of Teatinos and
the area of Tomillar, along with
the upper part of Colinas del
Limonar in Malaga Este.
Supply
During the last 12 months, the
initial supply was concentrated
in the districts of Puerto
de la Torre-Teatinos (2,454
residential units), Carretera de
Cadiz (596 units), Malaga Este
(462 units) and Rincon de la
Victoria (450 units).
2019 maintained the positive
growth of supply in most districts
due to the start of new projects,
reaching the same figures in
absolute terms as in 2018.
The most notable decreases in the
housing supply took place in the
areas of Bailen-Miraflores (-51%)
and Alhaurin de la Torre (-20%).
Prices
In 2019, the average price in the
city grew by 18% compared to the
previous year’s figures, reaching
€307,635, with an average capital
value of €2,425 per sq m.
The launch of the Picasso Towers
project considerably boosted the
average capital price of the Carretera
de Cadiz district, to €3,786 per sq
m, placing it in first position in the
city. This is followed by the Centro
and Malaga Este districts, with
€3,092 per sq m and €2,731 per sq m,
respectively.
Furthermore, the districts that
recorded the lowest average prices
were Ciudad Jardin (€999 per sq
m), Churriana (€1,314 per sq m) and
Alhaurin de la Torre (€1,596 per sq m ).
New luxury supply, rising prices and new residential developments
José Luis Bravo
Residential coordinator,
Andalucía
Málaga, the reference
residential market in Spain,
together with Madrid,
Barcelona, Alicante and the
Balearic Islands, continues
to be a safe bet for buyers,
sellers and investors.
The city of Malaga is
undergoing dramatic
changes and is on its way to
becoming one of the most
significant Spanish cities at
all levels. This deep
transformation makes the
capital of the Costa del Sol
into a centre of attraction for
new and ambitious real
estate projects, such as
Picasso Towers, Urban Sky,
Malaca Delta and the future
Repsol Towers, signifying
the firm commitment of
important developers to this
city.
The new development
projects in the city are
concentrated in already
well-established areas such
as Teatinos and its new
expansion zone and Colinas
del Limonar. Meanwhile, of
particular note are Avenida
de Velazquez and its entire
periphery; an area with
contained high demand that
is undergoing urban
transformation.
Colinas del Limonar, Teatinos and the western area
of Málaga are positioned as the focal points of the
residential market
New multi-family
- €
500 €
1,000 €
1,500 €
2,000 €
2,500 €
3,000 €
- €
50,000 €
100,000 €
150,000 €
200,000 €
250,000 €
300,000 €
350,000 €
2014 2015 2016 2017 2018 2019
€ per sq m
€
Source Savills Aguirre Newman Research
The districts with the
highest initial supply are
Puerto de la Torre-Teatinos
(52%), Carretera de Cadiz
(13%) and Malaga Este (10%)
52%
13%
10%
Source Savills Aguirre Newman Research
Housing units that make up the major residential projects in the city
+10.645
What can we expect from the residential in Malaga?
New Projects
Distribution of average prices Average new multi-family housing prices by district
€1,596 per sq m
€1,314 per sq m
€3,786 per sq m
€3,092 per sq m
€2,731 per sq m
€1,786 per sq m
€1,742 per sq m
€1,750 per sq m
€999 per sq m
€2,024 per sq m
Centro Malaga Este Ciudad Jardin Palma-Palmilla
Bailen-Miraflores Cruz del Humilladero Carretera de Cadiz
Rincon de la Victoria Puerto de la Torre-Teatinos Churriana
Alhaurin de la Torre
1
La Termica Project
An innovative project designed by
the prestigious French architectural
firm Francois Leclercq. It includes
various uses alongside the
residential, such as retail and offices,
within an island design with large
open areas facing the sea.
2
Repsol Project
The central focus of this project
is a large park which includes VPO
housing, open market housing and
commercial spaces. There is a plan
to construct a massive office park,
making it not only the driving force
of the city, but also the office centre
of the Costa del Sol.
3
Sanchez Blanca Project
Located in one of the city’s
natural expansion areas towards
the Guadalhorce valley, it will
have a public green area of 73,646
sq m. The Sanchez Blanca project
intends to become a technological,
social, mobility and environmental
reference point.
4
Santa RosalíaProject
This project comprises 2.6M
sq m, which includes housing,
business and commercial uses. A
significant development made up
of three sectors that promise to
bring a new area of expansion for
the city.
*Rough estimate
*
Average price (€) Average price (€ per sq m, right axis)
Average price Evolution of the average price of multi-family housing
Images are representative and contain no contractual value
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New multi-family New multi-family
The districts that registered
the highest initial supply were
Alhaurin de la Torre (36%),
Churriana (44%) and Puerto
de la Torre-Teatinos (14%)
36%
44%
17%
Development of single-family housing was
concentrated in the same areas as in previous
years. The districts of Malaga Este, Puerto de
la Torre, as well as those surrounding the city
(Churriana, Alhaurin de la Torre and Rincon
de la Victoria) accounted for the housing
supply of this type.
Supply
Worth noting is the decline in single-family
housing development in the districts of
Puerto de la Torre (-85%), Rincon de la
Victoria (-79%) and Alhaurin de la Torre
(-38%). In contrast, Malaga Este posted a
growth in supply of 87%.
The pronounced drop in the supply (number
of houses) was mainly due to the complete
sale of the projects marketed during previous
years, which were not offset by the new
projects on the market.
The largest volume of initial supply was
concentrated in the districts of Churriana
(145 housing units) and Alhaurin de la Torre
(119 units).
Prices
The limited supply of single-family housing
units led to an increase in the average price,
which stood at €344,011, 25% higher than that
registered in 2018. The average capital value
amounted to €1,800 per sq m.
The highest average capital values were
registered in the districts of Malaga Este
(€2,895 per sq m), Alhaurin de la Torre (€1,613
per sq m) and Churriana (€1,488 per sq m).
New single-family
Concentration of supply and price growth
Distribution of average prices Average new single-family housing prices by district
Multi-family housing
In 2019, positive figures
were registered in terms of
number of sales in multi-
family housing. A total of
31 projects reached sales
figures of 100% (two less
than in 2018).
The average marketing
period for a residential
project with an average
number of 51 units was 26
months, higher than that
recorded in 2018 (19.1).
This sales rate, which
already tended towards
stability, is nevertheless
being maintained within a
moderate and reasonable
time frame. For the same size
of development, the average
monthly percentage of units
sold stood at 3.8%.
Single-family housing
The average marketing
period for single-family
housing was 29.4 months for
a standard development of
16 units, placing the
percentage of units sold per
month at 3.4%.
The sale of new housing units continues to be stable
Stabilised sales rates
78% of the new single-
family housing supply in the
city is attached
78%
Multi-family housing
Single-family housing
The average percentage sold per
month
3,8
The average marketing period
(months)
26
The average percentage sold per
month
3,4
The average marketing period
(months)
29,4
Source Savills Aguirre Newman Research
€1,613 per sq m
€1,488 per sq m
€2,895 per sq m
€1,329 per sq m
€1,345 per sq m
Centro Malaga Este Ciudad Jardin Palma-Palmilla
Bailen-Miraflores Cruz del Humilladero Carretera de Cadiz
Rincon de la Victoria Puerto de la Torre-Teatinos Churriana
Alhaurin de la Torre
The sales rates have stabilised but remain
moderately healthy. Between 2019 and 2020, a
total of 31 projects have been completely sold
During the last year, the initial supply was centred in the
districts of Churriana, Alhaurin de la Torre and Malaga Este
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New single-family Marketing period
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Sun
Culture
Beach
Gastronomy
Leisure
Business
Communications
Málaga
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2013 2014 2015 2016 2017
2018
2019
Number of transactions
Over the last six years, the purchase and
sale of housing units has continued to
grow. Compared to 2013, the number of
transactions completed in this type of
housing remained at 114%.
In 2019, second-hand housing accounted for
85% of the units sold in the city, marking a
reduction of four percentage points compared
to 2018.
With regards to new developments, 2019
registered growth figures. There are
currently numerous projects underway that
are already in the pre-marketing phases and
which are getting an excellent response
from demand.
However, the economic scenario derived
from the COVID-19 health crisis leads us
to predict a temporary reduction in the
number of deals and a decrease in prices of
both new developments and second-hand
units. This unprecedented situation will
affect both markets, which in recent years
have shown great strength and a tendency
towards stability.
Source Ministry of Public Works | * Q4 (provisional figures)
Transactions New development vs Second-hand
Second-hand New development
Historically, second-hand housing has been the
market driver in the Malaga residential market.
It was only during 2008 and 2009 when new
developments surpassed this housing type in
terms of number of transactions.
According to the Q4 2019 data published by
the Ministry of Public Works, the number of
transactions for second-hand units slightly
dropped last year reaching 5,738 deals,
representing a -49.1% y-o-y decrease, while new
developments rose by 20.9% compared to 2018.
In January 2019, Savills Aguirre Newman
identified a supply of second-hand homes
from 5,500 to 6,000 in the districts
analysed in line with previous years.
Prices
Malaga Este, the Centro (old town)
district and the Puerto de la Torre-
Teatinos topped the ranking of the areas
with the highest capital values in the
city (€3,638 per sq m, €3,172 per sq m and
€2,414 per sq m, respectively).
On the other hand, the districts of Ciudad
Jardin, Rincon de la Victoria and Bailen-
Miraflores registered the lowest average
prices (€1,498 per sq m, €1,641 per sq m and
€1,690 per sq m, respectively).
Number of transactions
The number of real estate transactions
disrupted the upward trend of the second-
hand housing market, keeping prices stable
and slightly reducing the number of deals that
were carried out.
Second-hand
New housing developments gain ground over second-hand housing in the city
Distribution of average prices Average second-hand housing prices by district
Source Savills Aguirre Newman Research | Multi-family housing
€1,774 per sq m
€1,982 per sq m
€2,414 per sq m
€3,172 per sq m
€3,638 per sq m
€1,641 per sq m
€1,718 per sq m
€1,690 per sq m
€1,498 per sq m
€2,464 per sq m
Centro Malaga Este Ciudad Jardin Palma-Palmilla
Bailen-Miraflores Cruz del Humilladero Carretera de Cadiz
Rincon de la Victoria Puerto de la Torre-Teatinos Churriana
Alhaurin de la Torre
The number of second-hand real estate transactions has
decreased, continuing the stable trend
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Second-hand Second-hand
Rental markets
Over the past few years, the long-term
rental housing market has undergone major
changes. The emergence of holiday homes
continued during 2019, shifting demand
from the city centre to peripheral zones and
districts of the city's metropolitan area.
The enormous imbalance between supply
and demand, as well as the poor quality of the
available product, are the main characteristics
of the rental market in the city.
Factors of transformation already detected
years ago, such as the change in mentality
among young people, job expectations,
problems of accessibility, globalisation, together
with the flow of information and people, are
changing the culture of housing ownership,
which prevailed until a few years ago.
The new reality of the city’s residential
market is the construction of a wide range of
rental housing stock, with competitive and
reasonable prices. This model is already being
replicated and implemented in other large
Spanish and European cities and is the future
of Malaga. Despite the clear differences found
between these cities, the rental levels are
relatively similar.
The city's market continued the trend
observed nationwide during 2019. An
increasing number of households opted for
rental housing, although the limited supply
makes it extremely difficult to access this
format.
On the other hand, the market is not
professionalised, as the majority of the
supply is in the hands of private individuals.
The scarcity of new developments allocated
for long term rentals is one of the key
aspects of this market, with only eight
buildings dedicated to this activity in the
city of Malaga.
Supply
The supply of rental housing is mainly
focused on multi-family units (used as a
reference to carry out the analysis).
Savills Aguirre Newman estimates the supply
of long-term rental housing (including
exclusive buildings for rent) is between 1,000
and 1,300 homes, maintaining 2018 levels.
In 2019, the most sought-after areas were the
Zona Centro and its surrounding areas,
Carretera de Cadiz and Puerto de la
Torre-Teatinos.
The trend of relocation from the centre
continues, with the demand looking to move
Renting, the new front runner in the Malaga residential sector
closer to the sea or the surrounding vicinity.
In spite of this, more people, mainly families
with children, are seeking the comfort of
areas such as Puerto de la Torre-Teatinos,
Churriana or Alhaurin de la Torre. These
areas are primarily residential and have a
wide range of services and transport links to
other points of the city and the province, as
well as wide avenues, parks and quality
public/private schools.
The boom in tourist housing in the historic
centre and the subsequent decline in
long-term rentals have largely led to an
exodus to other areas of the city. The greater
profitability on tourist rentals continues to be
the reason for this change.
Rents
The shortage of quality supply suited to the
needs of demand and the boom in tourist
housing have contributed to the increase
in rental price in recent years. Overall, the
average rent has grown steadily between 2-3%
per year. However, between 2018 and 2019,
it remained stable due to the emergence of
demand in even more peripheral areas such as
Alhaurin de la Torre and Churriana.
During 2019, Malaga Este (€1,026 per month),
Centro (€952 per month) and Churriana
(€955 per month) were the districts with the
highest rents. Churriana has also recorded
the highest rise by 20% compared to 2018 due
to an exponential increase in demand and a
very limited supply.
On the other hand, the most affordable areas
were seen in the districts of Alhaurin de la
Torre (€476 per month), Ciudad Jardin (€672
per month) and Rincon de la Victoria (€771
per month). In all of these areas there is a
need for a greater supply of quality rental
housing with less pressure from demand.
Exclusive buildings for rent
This long-term rental housing type, which
is more common in cities like Madrid and
Barcelona, is still in a phase of growth and
consolidation. The excellent profitability of
tourist rentals (short stay) is directing the
interest of investors towards this business model.
Although there is a high level of interest from
the demand side for the supply of buildings
dedicated exclusively to rent (long-term rental),
during the last year no building with these
characteristics was incorporated into the city.
However, it is true that small local owners have
carried out the construction or refurbishment of
buildings of 3 to 5 housing units intended for long
term rentals in the areas of Alhaurin de la Torre
and Churriana.
In the city we find only eight buildings of this
type, with close to 100% occupancy, and with
waiting lists that, in some cases, exceed a year.
Distribution of average prices Average rental prices by district
Source Savills Aguirre Newman Research | Multi-family housing
€476 per month
€955 per month
€843 per month
€952 per month
€1.026 per month
€771 per month
€838 per month
€783 per month
€672 per month
€848 per month
Centro Malaga Este Ciudad Jardin Palma-Palmilla
Bailen-Miraflores Cruz del Humilladero Carretera de Cadiz
Rincon de la Victoria Puerto de la Torre-Teatinos Churriana
Alhaurin de la Torre
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Rental Rental
Pelayo Barroso
Research
+34 91 319 13 14
pelayo.barroso@savills-aguirrenewman.es
Arturo Díaz
Executive Director Residential
+34 93 439 54 54
arturo.diaz@savills-aguirrenewman.es
Research
Residential
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Savills Aguirre Newman Andalucía
We carry out a rigorous and objective analysis of the real estate market in order to be able to provide our
clients with information on the real situation in each of the sectors, thus helping them to make the most
appropriate decisions at each moment.
Jonathan Pino
Research
+34 952 06 27 82
jonathan.pino@savills-aguirrenewman.es
José Luis Bravo
Residential Coordinator, Andalucía
+34 952 06 27 82
joseluis.bravo@savills-aguirrenewman.es
Gema de la Fuente
Research
+34 91 319 13 14
Ruth Iglesias
Commercial Director
+34 91 319 13 14
ruth.iglesias@savills-aguirrenewman.es
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