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Malaga will incorporate new Build to Rent homes in the next three years

CBRE has identified up to 12.1 million m2 of residential building land in Malaga thanks to the Terra Project, while in Seville there are 8 million m2. Around 102,000 homes could be developed on this land, to be absorbed between 15 and 30 years.

In the next few years CBRE expects to deliver 37,000 homes in Spain, 85% of which will be in Madrid and Barcelona. Including these two cities together with Bilbao, Malaga, Valencia and Seville, there is a high demand for housing, therefore it is assured that there will be little risk in its commercialization phase.

If we refer to Seville, 8 million square meters were found to be vacant for residential use, where 58,000 homes could be developed. In Spain there is an average of 255 million square meters of vacant residential buildability. This translates to 1.8 million homes that would be absorbed in more than 30 years.

While 1,500 new build-to-rent homes will be added in Malaga, 1,000 new homes of this type are expected to be added in Seville.

Miriam Goicoechea, Director of Research at CBRE Iberia, adds "in Madrid, Barcelona, Bilbao, Malaga, Valencia and Seville, given the lack of supply of finalist land, investment is focused on land under development. However, investor interest is increasingly concentrated in these provincial capitals, where they are looking for a type of product with high liquidity and low risk in its commercialization phase thanks to the high demand for housing".

According to the real estate consultant, this has led to price increases in the main regions in 2022. In Malaga and Costa del Sol the increase was 7%, being the region with the highest year-on-year rise.

However, CBRE forecasts that the price of land will stabilize in the main cities and provincial capitals, although with an upward trend due to the lack of finalist land.

 The poor balance between housing supply and demand has caused the price of rents to increase, with Malaga currently being considered the fifth most expensive city in Spain with respect to rent. The average price per m2 per month is 11.9 euros, which means a growth of 19% compared to prices in the first quarter of 2022.

However, Barcelona takes the title as the most expensive city in Spain to rent, with an average price of 18.6 euros per m2 per month, which is 20% more than the first quarter of last year. Second place goes to Madrid with a rent of €16.2 per m2 and an increase of 10%, and Bilbao with third place with a price of €13.7 per m2 and an increase of 19%.