Nerja is one of several municipalities in Málaga where the cost of buying a house has reached record levels. The web site Idealista published data last month showing that the price per square metre is rising across the province, surpassing records set over the last ten years in some places.

The study compared the prices agreed in property sales during June and showed that, alongside Nerja, the municipalities of Algarrobo Costa, Chilches, Estepona, Fuengirola, Marbella and Ojen are all experiencing a boom in second-hand homes.

Marbella remains the most expensive municipality in which to buy an existing property with up to €2,910 per square metre being paid. This is 10.2 per cent more than a year ago and is a new record, although it still does not place the town amongst Spain’s 25 most-expensive. Estepona and Fuengirola have both experienced increases of around 11 per cent in the same period.

However, Nerja saw an even greater increase over 12 months thanks, says the report, to the scarcity of properties on the market. The price of €2,760 per square metre represents a rise of 11.8 per cent in a year.

Prices in Torre del Mar fell by one euro per square metre, while a number of small municipalities in the interior of the province recorded falls of between ten and 30 per cent. These include Alcaucín, Almogía, Archidona, Canillas de Aceituno, Colmenar, Cómpeta, Guaro and Mollina

The provincial average over the 12 months to June was a record high of €2,158 per square metre, a rise of 10.3 per cent since June 2018. The study warns that the supply of new-build homes is still at a low level, resulting in a high demand and increasing prices for second-hand properties. However, it adds that prices in Málaga remain reasonable when compared with somewhere like Formentera where asking prices are well in excess of €7,000 per square metre.

Meanwhile, the British remain at the top of the list of foreigners buying property in Spain. However, they now constitute 13.8% of all such purchases in the first quarter of the year, down from 16.6% in the previous quarter. Last month’s data from the College of Registrars put the French in second place, the Germans third and, with an increasing number of purchases, the Moroccans in fourth place.

The British remain at the top of the list of foreigners buying property in Spain.