The continued inability to obtain mortgages, falling house prices and increased residential tourism have led to a situation where, in the first half of 2013, almost half of house sales in Málaga province were through cash transactions.
There were 9,244 house sales in Málaga in the first half of 2013 and 4,588 (48.9%) were as a result of cash transactions.
Unlike during the boom years when, at one stage, the number of mortgages actually exceeded the number of houses sold and even those on a temporary contract were offered financing, banks are no longer willing to take risks and mortgages are harder to negotiate.
Many of the cash buyers are foreigners, 37% in fact, as they take advantage of the prevailing situation. Russia and Scandinavia have become major markets.
Interestingly, before the property boom, buying property for cash was commonplace. In 1992, three out of every four house sales were for cash.