The Ministry of Housing published its second-quarter figures on 1st October. The province of Málaga is among those holding on to supply best, while the city of Málaga is among those where the highest proportion of sellers reduce their asking price.
The Spanish market has seen a decline in sales volume for six consecutive months. This is no longer merely an impression; it is an established trend. What it is not doing, however, is becoming more affordable—and in Málaga, that contradiction is more evident than almost anywhere else.
Fewer transactions for two consecutive quarters
According to the Ministry of Housing figures published on 1st October, home sales fell by 7% year-on-year in the second quarter. This follows an 11.2% drop in the first quarter, bringing the overall decline for the first half of the year to 7.1%.
Within this overall fall, two distinct segments are moving in opposite directions:
- Second-hand homes: -10.5% year-on-year in the second quarter.
- New build: +25.2% over the same period.
Evidently, the slowdown is concentrated in the resale market. The new-build sector is growing strongly, although it represents a considerably smaller volume of overall transactions.
Prices have yet to reflect the trend
This is the aspect that catches many sellers off guard. Spain’s House Price Index, published by the National Statistics Institute—which tracks actual transaction prices rather than listing prices—rose by 12.2% year-on-year in the second quarter.
Fewer transactions alongside higher prices is not a statistical anomaly. A plausible explanation is that available supply is contracting faster than demand: fewer properties are selling simply because there is less stock available, not because buyer interest has waned. We examined this argument in detail in If you are waiting for the Benalmádena market to cool down to negotiate better.
Málaga maintains supply better than the national average
Idealista calculated that the stock of homes for sale fell by 7% year-on-year across Spain during the second quarter. In the province of Málaga, the decline was 6%—one of the mildest in the country and comparable to the figures recorded in Barcelona and the Balearic Islands (both at 5%). This stands in stark contrast to provinces where available stock has collapsed by more than 25%.
In plain terms, new inventory continues to enter the market on the Costa del Sol—through new developments, resales, and existing owners listing their properties. While other provinces suffer from a severe shortage of available housing, Málaga’s supply has contracted slightly, yet options remain available.
Yet price reductions are more frequent here
This metric appears to challenge the narrative of a tightly constrained market. According to Idealista, 16% of listed properties in Spain reduced their asking price during the second quarter, up from 13% a year earlier. In the city of Málaga, that figure reached 21%—one of the highest rates in the country, matching Sevilla and Zaragoza, and surpassed only by Madrid.
In effect, one in five properties listed in the city of Málaga was eventually discounted from its initial asking price.
Our reading of the situation: the market is not necessarily cooling down; rather, a number of sellers are launching at unrealistic initial prices. When an asking price is set too high, an adjustment becomes inevitable—it simply occurs later, following weeks without viewings. The primary drawback of adjusting two months into a listing rather than at launch is the valuable time lost.
The perspective from Benalmádena
Local data reflects this broader context. The average asking price in Benalmádena stood at €4,183/m² in August, according to Idealista, compared with €4,293/m² for the province as a whole.
There is also a second factor that standard national statistics do not capture. In the second quarter, 37.01% of property transactions in the province of Málaga were completed by foreign buyers, according to Spain’s Land Registrars’ Association—a figure exceeded only by Alicante. Foreign buyers often possess a different financial profile and are less dependent on mortgage financing than domestic buyers, meaning they react differently to interest rate increases. We explored this two-speed market in Two markets in one [URL pending]
Practical implications for sellers
Three key takeaways for property owners:
- The 7% national decline does not tell your local story. It is a aggregate figure that combines regions like Soria with Marbella. In Málaga, the market remains active, with lower transaction volumes but steady stock turnover.
- Initial asking prices remain decisive. With one in five homes in the city reducing prices, listing high is no longer an effective negotiating tactic—it simply risks wasting the crucial first few weeks when buyer interest and viewings are highest. If you are uncertain about your property’s current position, we recommend taking our questionnaire for sellers.
- Your prospective buyer may well be international. Almost four in ten buyers in the province come from abroad, bringing different timelines, priorities, and requirements.
If you would like to know what properties similar to yours are actually selling for in your local area—rather than just their asking prices—please feel free to call us on +34 692 62 19 19.
Further reading
- If you are waiting for the Benalmádena market to cool down to negotiate better, you may be watching the wrong signal
- Two markets in one: who can keep buying while the Euribor rises
- In Benalmádena, the slowdown is reaching the residential market too, not just luxury
- Tourism does not explain one season in Benalmádena: it explains part of the property market
