Malaga is the Spanish province that will experience the greatest growth in the number of homes over the next 15 years, anticipating an increase of 20,192 homes per year until 2028, according to the latest report presented by Savills. To respond to this demand and the trend towards greater concentration in urban areas, the consultancy firm points out that it is necessary to double the current production of new housing in Malaga and its metropolitan area. This implies completing sectors with the creation of new neighbourhoods, the regeneration of well-connected areas and a significant increase in the supply of affordable housing.
The Savills report also highlights that administrations are moving forward with active measures to address the housing shortage, especially in the area of affordable housing or VPO. However, the limited availability of land presents a considerable challenge to the development of the new housing needed. Over the last decade, the annual supply of new housing in Malaga and its metropolitan area has ranged between 3,000 and 4,000 units. To bring the supply in line with the forecast of new household creation, approximately 7,500 units per year would be required on the market. In addition, to make up for the shortfall accumulated in recent years, it would be necessary to produce around 12,000 units per year over the next five years.
In the residential sector, the report notes that the current mismatch between supply and demand continues to influence price increases. New multi-family developments in Malaga have increased by 5% over the previous year's levels, exceeding 4,000 euros per sqm and with an average price of more than 500,000 euros per flat in the capital. Although new supply on the market has grown by 15% in 2024, the absorption rate remains high, with 63% of multi-family homes and 55% of single-family homes sold in the last twelve months.
The rental market in Malaga shows a more pronounced mismatch between supply and demand compared to other cities, exacerbated by population growth, the difficulty of access to purchase housing and the growth of tourist housing. Both the public and private sectors are exploring public-private partnership solutions to boost social housing projects.
Additionally, Malaga is expected to double its supply in BTR, coliving and flex living in the next four years. There are currently almost 1,500 units in these projects, and 3,300 units will be added in the next four years, an increase of 130%. Student residences are also helping to absorb some of the demand in the rental market, with the number of beds doubling to 3,225, including 600 new beds in development.
These new housing offers are designed to suit different population profiles and are located in well-connected areas that complement the city's economic growth and the attraction of businesses and universities.
Finally, Savills stresses the need to increase quality and sustainable space in the office, hotel, retail and logistics sectors to adapt to new user requirements.
