Guides

Mortgage trends

 Sustained property growth rates in Malaga:

Mortgage Trends for 2025

Good news for homebuyers and investors: the mortgage market in Spain is on an upward trajectory, and the latest data backs it up. The number of mortgages taken out in 2024 soared, and we expect the same trend to continue in 2025. According to INE, December alone saw 32,249 loans signed nationwide—a 30% increase compared to the previous year.

Spotlight on Malaga: A Booming Market Malaga has solidified its position as one of the top-performing provinces. In December 2024, a remarkable 1,957 mortgages were signed—a staggering 62% jump from December 2023. This makes Malaga the fourth busiest province for home loans, trailing behind only Madrid, Barcelona, and Valencia. Additionally, Malaga ranks third for the highest mortgage loan amounts, averaging around €186,000, following Madrid (€236,000) and the Balearics (€290,000).

What’s Driving the Growth? Real estate experts at top portals like Idealista, Fotocasa, and pisos.com agree that mortgage growth will persist throughout 2025. Several key factors are at play:

• Competitive Interest Rates: Though the average mortgage interest rate ticked up slightly from 3.12% to 3.28%, industry insiders, such as Idealista’s Juan Villén, believe banks will adjust rates downward due to increasing competition.
• Increased Loan Demand: The appetite for mortgages remains strong, fueled by a reduction in financing costs and growing buyer confidence.
• Regional Variations: Some regions are performing better than others. While Madrid saw a minor dip (-2%) in mortgage activity, Valencia and Catalonia surged ahead with 20% and 34% growth, respectively.

Market Outlook for 2025 Experts anticipate mortgage signings will exceed 420,000 by year-end, making

it the second-best year since 2010. The drop in interest rates is encouraging more buyers to take out loans, further driving property demand and price increases in the medium term.

What This Means for Investors For foreign investors eyeing the Spanish market, this is an excellent time to act. Falling interest rates, rising mortgage availability, and an overall robust housing market signal promising returns. Whether you’re looking for a holiday home, a rental property, or a long-term investment, the conditions are shaping up favorably.

In summary:

• Malaga saw a 62% surge, ranking among the top four provinces.
• Competitive lending is expected to keep rates attractive.
• Forecast for 2025: Over 420,000 mortgages signed, making it the second-best year since 2010.
• Ideal climate for foreign investors looking for profitable property opportunities.