Sharp Increase in Malaga Rental Prices
The rising rental costs in Malaga have become a significant issue, with a 13.2% year-on-year increase in the city from September 2023 to September 2024, according to data from a major real estate company. Not only is Malaga experiencing this surge, but other municipalities in the region, such as Benahavis and Marbella, have surpassed the city in rental costs, driven largely by luxury housing demand. Benahavis now stands as the most expensive municipality in the province, with an average rent of 17.90 euros per square meter.
Rental Prices Rising Across Spain
The broader trend across Spain shows that rental prices have been rising in all major markets, with Madrid seeing a 15.7% increase, reaching 20.40 euros per square meter, and Barcelona experiencing a 12.1% rise to 22.40 euros. Despite these significant hikes, some areas, like Jaen and Huelva in Andalucía, remain more affordable, with rents as low as 7.2 euros and 8.3 euros per square meter, respectively.
Call for Immediate Action on Rental Market Issues
The ongoing increase in rental prices has sparked concern, with Francisco Iñareta, spokesperson for a leading real estate company, emphasizing the need for immediate action. He pointed to years of restrictive policies that have pushed landlords and investors out of the market, creating a supply shortage. To address the issue, Iñareta suggests reforms to provide landlords with more legal certainty and create a more balanced relationship between landlords and tenants, which could help expand the rental housing stock.
Andalucía’s Rental Prices Continue to Climb
The real estate company’s report highlights that Andalucía, overall, has seen a rental price increase of 9.1% over the past year, with the province of Malaga leading the rise with a 10.1% increase. While the provincial average price per square meter is now 14.90 euros, some municipalities, like Estepona, Torremolinos, and Benalmádena, are also showing higher rental rates than Malaga city.
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