Málaga housing deficit grows as property prices hit record highs

Málaga is facing a significant housing shortage, with new construction covering only 52% of the 55,500 new households created in the province between 2021 and 2025. Data from the National Statistics Institute and the Ministry of Housing indicate a deficit of approximately 26,375 homes. While Málaga has seen the third-largest expansion of its residential park in Spain, behind only Madrid and Barcelona, the supply has failed to keep pace with demographic growth.

Simultaneously, property prices in Málaga capital reached a historic high in August, averaging 3,938 euros per square meter. This represents a 5.1% year-on-year increase according to Idealista. The cost in the capital is 1,014 euros per square meter higher than the Spanish national average. Despite high interest rates, demand remains active, driven by tourism, remote work, and foreign investment, preventing a price correction even as the broader national market shows signs of cooling.