The average appraised value of protected housing in the province of Malaga has seen a 3.3% increase compared to the previous quarter and a 5.5% year-on-year rise, standing at 1,273.1 euros per square meter. This indicator, which encompasses all protected housing in the territory – new and old, first and second-hand, sold by individuals and developers – is explained by José Antonio Pérez, professor at Real Estate Business School (Rebs), as a reflection of market evolution and property age, rather than the price of a new VPO available on the market.
With this figure, Malaga ranks behind only Barcelona (1,288.8 euros/m²) and Madrid (1,503.6 euros/m²), surpassing the national average of 1,222.3 euros/m² recorded at the end of the first quarter. The Spanish average has seen six consecutive quarters of increase, with a 4.5% growth compared to the beginning of the previous year.
Pérez clarifies that appraisal increases are a "market normality," as the average value includes VPOs over 40 years old, whose price and module have been revalued or de-qualified. Once a VPO is de-qualified, after its protection period ends, it can be sold at market price, approaching that of free market housing, especially in the second-hand market.
The main problem identified by the expert is not the price of new VPOs, but their "practical non-existence." The lack of profitability for private developers, due to the limitation of maximum prices, and "public inactivity" are the factors hindering the construction of protected housing. A lack of sustainable financing for developers and of urbanized land for VPOs is highlighted.
The expansion of VPO construction on both public and private land is advocated, promoting rental or rent-to-own formulas, with installments not exceeding approximately one-third of household monthly income to ensure affordability.
