Property transactions in Málaga and the Costa del Sol have fallen three times more than the Spanish average.

According to a report from Spain's national statistics institute (INE), the real estate market continues to cool across the country. Inflation is eroding households' purchasing power, and rising interest rates are only exacerbating the situation - Euribor now stands at 4.2%.

Real estate sales in the province of Málaga have been hit hard. In the first seven months of the year, 21,159 homes were sold and bought, 16.26% less than in the same period last year, when some 25,300 transactions took place.

The data also shows that in the real estate market of Málaga, new buildings have performed worse than the secondary housing segment.''Transactions involving secondary homes fell 22% in July, from 2,900 to 2,260, while those involving new homes fell by more than 28%, from 719 to 516.

One thing experts say, however, is not to draw disastrous conclusions from this data, as the number of sales is on par with 2019, indicating that the market is starting to normalize and is in a healthy environment. Nevertheless, some experts say it is important to keep an eye on real estate price trends to see how much the decline in demand could affect the market.