Malaga City, as well as Malaga Province, is attracting far more well-to-do buyers looking for second homes than in previous years, according to real estate experts. The City of Malaga and some of the province's major resorts, such as Marbella for example, boast so many culture and leisure facilities, local amenities and excellent communications that comfortably off buyers are heading to Malaga in search of second homes. Buyers seeking urban accommodation, usually look first in Malaga centre or the eastern part of the city.
It's an unusual development, since in the past it was almost exclusively Costa del Sol resorts that attracted wealthy buyers. The emergence of a new profile of house buyers has taken many experts by surprise. Typical Malaga city buyers are aged 55+, either foreign or Spanish, financially well off and seek top-floor apartments in La Malagueta district or in Malaga's historic city centre rather than villas or town houses in Marbella, San Pedro or Fuengirola.
The immense growth of Malaga's cultural offerings is one reason why the city has become such a hot spot for buyers. According to estate agents, Malaga city has transformed itself into an important tourist destination in the past few years, now boasting world-class museums and art collections, a traffic-free city centre and a vibrant art culture. A large number of cruise ships arriving at Malaga Port has also played a role in the increasing popularity of Malaga as a property hot spot. Local gastronomy chiefs are pointing to the many accolades the city's food festivals, gourmet restaurants and food markets have won internationally.
This shift in buyer characteristics is far more drastic than anticipated by many tourism chiefs. No longer are they seeking merely sunshine, beach and bars. They are looking for "an urban setting, with good communications, services and leisure facilities", according to José Antonio Pérez, the director of the Real Estate Chair of the Institute of Business Practice (IPE). And this means, house-hunters are now looking first at places like Malaga, Granada and Marbella, because these cities combine beach and urban lifestyles beautifully.
"The common denominator in this demand goes beyond nationality, because there are as many Spanish as Norwegians, Belgians, Germans looking for somewhere in the city... they are at a medium-high level in terms of wealth and are all over the age of 55," Pérez added. The many accolades Malaga has won as a top-class city break destination over the last few years has a lot to do with these buyers' home buying activities.
Northern European Buyers flock to Malaga
The Malaga branch of German estate agents Engel & Völkers has only been open for a few months, but its manager Mario Garnica can already confirm that José Antonio Pérez is spot on with his view of the current second homes market.
He explained: "About 60 per cent of clients are foreigners, mainly from central Europe and Scandinavia, and they are looking for a second home. There are different types, really: the person who already knows the Costa del Sol, who maybe has a place in Marbella, and is now looking for an apartment in Malaga; and also someone who comes from abroad and rents a house for a month while he looks for a property to buy."
More Experienced Buyers dominate the Malaga Property Market
The way in which buyers make a decision is very similar to the way they used to buy residential property in Marbella, according to Iñigo Molina, the director of Andalucía-based Richard Ellis consultancy. "First they come and stay in a hotel, then they rent a house and after that they buy one."
Another factor in Malaga city's attractiveness to home buyers is the lack of available property - it keeps house prices more stable than in many other parts of Spain. New housing stock is virtually non-existent, so buyers must choose from the resale market instead. And resale homes in Malaga are still a little less expensive than those in Marbella, even if they are smaller and further away from the sea - this means they represent a good investment in the long run, as prices are likely to go up.