Is Málaga Property Market being cornered ?
10 March 2012 @ 11:04
The housing sector of Málaga continues to be left in a lurch and wracked by uncertainty. These are the main conclusions of the Malaga Residential Market Report in 2011 by Aguirre Newman, which points to a drop in home values thanks to the restructuring of products for sale into rentals. In addition, it is anticipated that this trend will continue growing during 2012 and that prices will fall 20% further in the capital of Malaga and its metropolitan areas.
According to the conclusions of this study, the time it takes to sell a multifamily home has increased to 80.1 months, because of the difficulties in securing a mortgage and the uncertainty of the job market. As a result, the demand for rentals has clearly increased.
Aguirre Newman points out that the supply of homes in the metropolitan area of Malaga consists of around 1,485 flats and 164 single family homes, which means a drop of 14.7% compared to 2010.
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