The second largest city in Andalucía, Malaga is recognised as the capital of Costa del Sol but has often been regarded simply as the region’s gateway. However, with an intrinsic set of distinguished charms accompanied by various cultural and infrastructure projects in progress, Malaga city is a worthy destination in its own right.
Topographically, Málaga city is classified by a sweeping bay and mountainous backdrop. Architecturally speaking, footprints from the Moorish occupation that lasted until the mid-15th century remain prevalent, from magnificent fortresses to period properties, with new-build designs reflecting the stylish history. A classic Andalucían city, much of the atmospheric old quarter has been lovingly restored. The city celebrated its illustrious son, Picasso, by opening a museum dedicated to the artist in 2003, while the city’s nomination to host the European Capital of Culture in 2016 suggests cultural progress and recognition into the future.
Modernisation is also high on the progression agenda. Projects include the city tram system and a ring road to ease congestion, supported by development of run-down areas. As a result of such efforts it is widely believed that Málaga will survive the general market downturn. In fact, Málaga’s property market has already proven its worth. Kyero.com sites prices of Malaga property as being 12.1 per cent more expensive than Malaga province and 38.6 per cent more expensive than the national average of Spain. Venturing into the wider Málaga area, Kyero.com states that prices of property in Málaga province are 24.7 per cent more expensive than in the region of Andalucía and 23.7 per cent more expensive than the national average of Spain.
For property buyers still cautious about investing, choosing a prosperous location is paramount. For instance, Alhaurin de la Torre is a popular suburb that has literally boomed over recent years due to its enviable and convenient location just 15 kilometres from the city centre, seven kilometres from Málaga Airport and close proximity to motorways and beaches. The population is mainly Spanish middle class, but it has also caught the eye of expats from North European countries, who are buying for investment or permanent residence, through its offering of modern living, good schools and excellent range of amenities. As such, virtually every type of Alhaurin de la Torre property, has decent rental potential, both for long-term and summer holiday lets, with rental returns averaging around four per cent.
John O’Reilly of Property Directors, based in Alhaurin de la Torre, states: “With the economic downturn in full swing we can now offer rent-to-buy options on many of our property listings. Rent-to-buy differs from pure long-term renting because it carries the option of buying property for sale at anytime within the rental term (usually 11 months), and all rent paid is deducted from the agreed buying price. With this option you can decide when the market conditions are right for you to buy. With a weak pound to euro exchange rate and the possibility of a reduction in mortgage interest rates in the future, you can wait in the knowledge that with this option renting is not just dead money but can in fact work to your advantage. You will also have the opportunity to live in the property and get to know the area before buying the property. For instance a four-bedroom, two-bathroom detached villa with pool in Alhaurin de la Torre is for sale at £396,000, available for rent from £1,200 per month, with a rent-to-buy option.”
For property buyers seeking excellent rental yields of their own, upgraded infrastructure is a blessing for the holiday market. Málaga Airport is the main destination for around 12 million people arriving on the Costa del Sol each year and plans are underway for the construction of a third terminal and second runway. In a boost to those wishing to rent to Brits, Ryanair recently began flying to Málaga from the East Midlands, Liverpool, Bournemouth and Edinburgh. In addition, there is a new toll road under construction to improve road connections between the rest of Andalucía and Málaga, as well as new AVE high speed train connections from Málaga to Córdoba, Sevilla, Barcelona and Madrid.
Easy access between Málaga city, its outskirts and beyond will undoubtedly raise property interest in the rural surrounds. David Rick from Torcal Estates says: “Antequera, just 45 minutes north of Málaga, has for centuries been known as the crossroads of Andalucía due to its location and the ease with which all of the major cities in Andalucía can be reached. The ability to transport goods from the coast via Antequera and onwards to Granada, Córdoba and Sevilla has ensured that Antequera has grown into the major staging post between inland and coastal Andalucía.” Future plans, such as a new airport, in this town are balanced by the appeal of a thriving farming economy that has survived modern development, meaning that the region does not have to rely on tourism for its prosperity. Consequently, it has avoided the boom and crash cycle that has plagued recent coastal resorts, offering a traditional haven where permanent overseas residents are most welcome.
Further good news for property buyers who have avoided rural areas due to illegal building concerns is that new patrols have taken to the air to photograph vast swathes of the Málaga countryside in order to check the actual ground situation compared to registered records. Such effective measures certainly suggest peace of mind, while the mix of modern and period Malaga properties available in sought after locations bestows an eclectic market to suit all style preferences and budgets.
First published in October 2008.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
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