Spain Research – March 2020 REPORT Málaga Residential Savills Research 2020 Foreword Key aspects of the residential market Factors that will determine the future of the city Malaga has been undergoing The areas where the residential development unprecedented transformation for several is concentrated are Puerto de la Torre-Teatinos, years. With good transport links by land, sea Carretera de Cadiz and the Este district, which and air, the city has a wide offering of cultural stand out for their good transport links and wide activities such as museums and galleries, putting variety of services available to residents. In addition it on the same level as other major cities in to these areas of expansion, the centre and its Europe. Furthermore, its historic centre, which is immediate surrounding areas continue to attract pedestrianised, has resulted in reduced pollution the interest of developers and end buyers. alongside increased commercial and business activity. The rental market, expanding in all major Spanish cities, is not an exception in Malaga. However, this The residential market is a good indication of is still a pending matter, as it is still very limited all these changes, with the approval of esteemed in certain areas due to the expansion of holiday projects such as Torre del Río, La Termica, housing. The city requires quality and professional Martiricos and Colinas del Limonar, as well as other rental housing stock to accommodate a demand new projects, namely the future developments that has been growing in recent years. 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 José Félix Pérez-Peña of multi-family housing projects, an ecological Andalucía Director and future-oriented solution that aims to position +34 952 06 27 82 Malaga among the large international cities. [email protected] Contents 4-5 6 7 New multi-family New single-family Sales rate We examine in greater detail the type We focus on the single-family home We analyze the sales rate for the of residence that is growing the most residential market 10-11 12-13 15 Second-hand Rental markets Contacts Growth, prices and current situation The rise of this "lifestyle" comes into Your Residential and Analysis Team in of the most traded housing in the city the picture. What is your position in Andalusia the city? savills-aguirrenewman.com/research 2 3 savills-aguirrenewman.com/research New multi-family New multi-family The districts with the Colinas del Limonar, Teatinos and the western area highest initial supply are of Málaga are positioned as the focal points of the Puerto de la Torre-Teatinos 52% (52%), Carretera de Cadiz residential market 13% 10% (13%) and Malaga Este (10%) Average price Evolution of the average price of multi-family housing Distribution of average prices Average new multi-family housing prices by district Málaga, the reference residential market in Spain, Average price (€) Average price (€ per sq m, right axis) €999 per sq m together with Madrid, 350,000 € 3,000 € Barcelona, Alicante and the Balearic Islands, continues to be a safe bet for buyers, 300,000 € sellers and investors. 2,500 € €2,024 per sq m The city of Malaga is undergoing dramatic 250,000 € €1,750 per sq m changes and is on its way to 2,000 € becoming one of the most significant Spanish cities at €3,092 per sq m 200,000 € m all levels. This deep €1,742 per sq m sq transformation makes the € 1,500 € €2,731 per sq m €1,786 per sq m capital of the Costa del Sol 150,000 € into a centre of attraction for € per new and ambitious real €3,786 per sq m estate projects, such as 1,000 € Picasso Towers, Urban Sky, 100,000 € Malaca Delta and the future Repsol Towers, signifying the firm commitment of 500 € important developers to this 50,000 € city. €1,314 per sq m Centro Malaga Este Ciudad Jardin Palma-Palmilla The new development - € - € Bailen-Miraflores Cruz del Humilladero Carretera de Cadiz projects in the city are 2014 2015 2016 2017 2018 2019 Rincon de la Victoria Puerto de la Torre-Teatinos Churriana Alhaurin de la Torre concentrated in already Source Savills Aguirre Newman Research €1,596 per sq m well-established areas such Source Savills Aguirre Newman Research as Teatinos and its new expansion zone and Colinas New multi-family del Limonar. Meanwhile, of New Projects New luxury supply, rising prices and new residential developments particular note are Avenida What can we expect from the residential in Malaga? de Velazquez and its entire periphery; an area with Malaga’s residential market has Limonar in Malaga Este. Prices contained high demand that continued to grow over the last In 2019, the average price in the La Termica Project Sanchez Blanca Project is undergoing urban few years, brought about by the Supply city grew by 18% compared to the 1An innovative project designed by 3Located in one of the city’s transformation. strong economic situation, the During the last 12 months, the previous year’s figures, reaching the prestigious French architectural natural expansion areas towards growth in tourism and the initial supply was concentrated €307,635, with an average capital firm Francois Leclercq. It includes the Guadalhorce valley, it will significant cultural attraction. in the districts of Puerto value of €2,425 per sq m. various uses alongside the have a public green area of 73,646 de la Torre-Teatinos (2,454 residential, such as retail and offices, sq m. The Sanchez Blanca project 2019 was characterised by the residential units), Carretera de The launch of the Picasso Towers within an island design with large intends to become a technological, launch of large new Cadiz (596 units), Malaga Este project considerably boosted the open areas facing the sea. social, mobility and environmental developments that increased the (462 units) and Rincon de la average capital price of the Carretera reference point. residential supply, in some cases, Victoria (450 units). de Cadiz district, to €3,786 per sq Repsol Project Santa RosalíaProject José Luis Bravo targeting the prime market. The m, placing it in first position in the 2 The central focus of this project 4This project comprises 2.6M Residential coordinator, marketing of all the projects was 2019 maintained the positive city. This is followed by the Centro is a large park which includes VPO sq m, which includes housing, Andalucía aimed at both national and growth of supply in most districts and Malaga Este districts, with housing, open market housing and business and commercial uses. A international buyers. due to the start of new projects, €3,092 per sq m and €2,731 per sq m, commercial spaces. There is a plan significant development made up reaching the same figures in respectively. to construct a massive office park, of three sectors that promise to The new projects were absolute terms as in 2018. making it not only the driving force bring a new area of expansion for incorporated in different parts of Furthermore, the districts that of the city, but also the office centre the city. the Carretera de Cadiz district, The most notable decreases in the recorded the lowest average prices of the Costa del Sol. the central hub of Teatinos and housing supply took place in the were Ciudad Jardin (€999 per sq Images are representative and contain no contractual value the area of Tomillar, along with areas of Bailen-Miraflores (-51%) m), Churriana (€1,314 per sq m) and the upper part of Colinas del and Alhaurin de la Torre (-20%). Alhaurin de la Torre (€1,596 per sq m ). * +10.645 Housing units that make up the major residential projects in the city *Rough estimate savills-aguirrenewman.com/research 4 5 savills-aguirrenewman.com/research New single-family Marketing period The districts that registered 78% of the new single- the highest initial supply were 78% family housing supply in the 36% Alhaurin de la Torre (36%), city is attached 44% Churriana (44%) and Puerto 17% de la Torre-Teatinos (14%) The sales rates have stabilised but remain moderately healthy. Between 2019 and 2020, a total of 31 projects have been completely sold Distribution of average prices Average new single-family housing prices by district €1,345 per sq m Multi-family housing The average percentage sold per 3,8 month €2,895 per sq m €1,329 per sq m The average marketing period 26 (months) €1,488 per sq m Single-family housing Centro Malaga Este Ciudad Jardin Palma-Palmilla €1,613 per sq m Bailen-Miraflores Cruz del Humilladero Carretera de Cadiz The average percentage sold per Rincon de la Victoria Puerto de la Torre-Teatinos Churriana 3,4 Alhaurin de la Torre month Source Savills Aguirre Newman Research The average marketing period 29,4 (months) New single-family Concentration of supply and price growth Development of single-family housing was (-38%). In contrast, Malaga Este posted a Prices concentrated in the same areas as in previous growth in supply of 87%. The limited supply of single-family housing Stabilised sales rates years. The districts of Malaga Este, Puerto de units led to an increase in the average price, la Torre, as well as those surrounding the city The pronounced drop in the supply (number which stood at €344,011, 25% higher than that The sale of new housing units continues to be stable (Churriana, Alhaurin de la Torre and Rincon of houses) was mainly due to the complete registered in 2018.