RECORD-HIGH COSTS OF BUYING AND RENTING PROPERTY IN2 Great Andalucía locations in 2023

As 2023 came to a close, Spain’s real estate market, much like the rest of Europe, witnessed record-high prices across the country, with Malaga and Cadiz in Andalucía reporting particularly remarkable figures for both sales and rentals.

Data from the housing marketplace and research group Idealista reveals that housing costs in Malaga and Cadiz have soared to historic highs, with average sale prices in both cities exceeding €2,700 per square meter. In Malaga, this figure peaked at a historic maximum of €2,668 per square meter in December 2023, with the central district reaching an unprecedented €3,567.

The most astounding average sale price in Malaga, also an all-time high, was observed in the upscale Este district, hitting an astonishing €3,723 per square meter in December. According to Idealista’s data, every district in Malaga reached its historical maximum average sales price in October, November, or December 2023. The lowest prices were recorded in the hilly residential district of Ciudad Jardin on the outskirts of Malaga, averaging €1,779 per square meter.

Rental prices in Malaga followed a similar trend, with the city’s average rental price reaching a historic high of €13.6 per square meter in December 2023. Este recorded the highest rental price at €15.1 per square meter, while the lowest price was noted in Campanillas at €10.5 per square meter. The average rental rate in the city center stood at €14.7.

In Cadiz, the story mirrored that of Malaga, with the city registering a record-high average sale price of €2,786 per square meter in December 2023. Only the city’s most expensive neighborhood for buying, Cortadura, did not record its highest-ever average sale price this year. The beachfront zone reached €3,434 per square meter in December.

For rentals, Cadiz hit an average price of €11.0 per square meter in December, also an all-time record. Notably, Cortadura’s rental prices were slightly lower than the city’s average, standing at €10.7 per square meter, though still a record high. Playa Santa Maria del Mar in Cadiz emerged as the most expensive neighborhood to rent in, recording an average price of €11.6 per square meter.

To provide context, Idealista’s December 2023 Monthly Residential Report places the average housing sales price in Spain at €2,042 per square meter. The highest prices in the country are found in the Balearic Islands, with an average sales price reaching €4,000, and Guipuzcoa in the Basque Country, with average sales prices approaching €3,500 per square meter.

While variations exist between provinces, housing costs have been on an upward trend across much of Spain since the pandemic. In Malaga, rental prices have seen a significant increase since early 2021, marking the end of a period with monthly decreases for nine consecutive months. Although prices in the Malaga province generally trended upward, a slight decrease of 1.1% occurred from August to September 2023, the first downward trend since March 2021. Similarly, in Cadiz, the period between August and October 2023 witnessed three consecutive months of negative growth in rental prices, indicating a potential stabilization of housing costs in Andalucia after years of staggering growth.

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