Residential Market

Residential Market

The new-build residential market has been characterised for moving at different speeds, with solid foundations that have provided us with great stability during the pandemic.

José Luis Sanz | Associate Director. Residential & Alternatives. Capital Markets


In a general but adverse context, in 2020 the market continued to be dynamic.

Conditions were created throughout the year so that, once the health crisis had ended, a transactional boom would ensue in terms of land.

The most attractive urban areas in the city in which to undertake residential projects include: Cortijo Merino, Sanchez Blanca, Nereo, El Tinto, Repsol and Rojas Santa Tecla.

On a transactional level, the highest price obtained has been registered for land for urban development in Málaga-Este (€1,500/m² floor area)

Furthermore, we hope that once the vaccine rollout is complete and flight activity from different potential-buyer countries returns to normal, a high level of significant activity will be seen in the land market in general and specifically in that on the Costa del Sol.

Great dynamism and good rates of sales in Málaga capital since last summer. We expect a quick reactivation in terms of non-resident international demand in Q3 and Q4 of 2021 on the Costa del Sol.
Real estate transactions 2020
Evolution of free dwellings started
Distribution of new construction housing transactions
New free housing transactions

José Luis Bravo | Director. Residential Sales


As we have seen over the year, the robustness of the residential market has continued throughout the pandemic, establishing an upward trend during 2020.

Greater protagonism of the pre-owned home sector that continues being the benchmark insofar as number of transactions, although the new-build market shows clear growth. The new-build market has gone from a market share (number of transactions) of 11% pre-COVID, to 20-30% today.

A sector moving at two speeds: on the one hand, the dynamism, high demand and good rate of sales that has characterised Málaga capital with an early recovery. On the other, the impossibility of travelling for potential non-resident international buyers has led to a fall in the number of leads and visits, in turn slowing down the rate of sales on the Costa del Sol.

In any case, and once normality returns after the pandemic, we expect the second-home market to quickly reactivate on the Costa del Sol, which will be seen in the third and fourth quarter of this year.

Nothing currently leads us to consider a drastic change in house prices. In fact, certain stability is expected with slight increases throughout 2021.

This year we will see new launches of new-build projects both in Málaga capital and in Costa del Sol municipalities.

Changes in the needs of the demand place the focus of interest on new-build houses with a 52% increase in transactions at year-end 2020 compared with 2019.
Evolution of the new-build residential market
Evolution of the average price of new-builds
Multi-family housing
Single-family housing


  • In general terms, the price of land has remained stable with a few occasional rises

  • Level of fund liquidity at record highs

  • Shortage of land for urban development in target locations

  • Study of land operations under management

  • Reactivation of the land market on the Costa del Sol

  • Interest in BtR projects

  • The new-build housing sector increases its coverage to up to 25% of the total, although the pre-owned sector continues at the forefront of the residential market

  • We detect changes in demand needs, focussing on new-build homes. An increase of 52% has been registered in transactions for this kind of housing at year-end 2020 compared with 2019

  • The trend in price stability continues, including with slight increases in 2021

  • Financial requirements on developers increase Institutions require around 50% of purchase agreements to be signed in order to grant developers financing

  • Extensive interest by buyers that results in high rates of sales in Málaga capital

  • We expect a strong reactivation of sales in the third and fourth quarter with the return of non-resident international tourism to the Costa del Sol

  • The fall in approvals and the handing over of keys for new-build developments have led to a lower availability in the market and greater activity among developers to launch new projects

  • New-build homes are good alternatives in terms of safe investments