COVID-19: IS THE COSTA DEL SOL PROPERTY MARKET IMMUNE?
When asked to think of anywhere in Spain, most people would probably say Marbella. That’s because it’s universally known. It’s associated with glitz and glamour, wealth and style. This much has been true since the 1950’s and the ground breaking inception of the Marbella Club Hotel, which has attracted celebrities and the wealthy elite ever since.
But when the Covid-19 pandemic first arrived in Spain and the Costa Del Sol early in the year, sellers, buyers, estate agents and developers braced themselves for a drop in house prices. This however did not happen then, and still has not happened 6 months later even following strictly enforced lockdowns and travel restrictions. But why?
Many people thought that the impact would be along the lines of the financial crisis just over a decade ago, however it is important to remember that this was not born as an economic problem.
Here at Verdin Property, we have no doubt that the Covid-19 pandemic has enhanced the vitality of a home. Due to varying restrictions around the world, more and more of us are now using our homes as offices, spending the majority of the week working from the living room, the kitchen, or the garden if it’s sunny enough. This means that a lot of homeowners have been investing money into their current properties, such as redecorating ready for Zoom meetings, new kitchen appliances, comfortable new furniture, you name it! Plus, given the way Covid-19 is evolving, working remotely might be the new way forward for a lot of us.
And then there’s those that just fancy the ultimate change. A new property entirely. Verdin Property have noticed that one particular type of property transaction is on a significant upward trend… detached villas! Rather than looking for properties in central locations in Marbella and Malaga, where you are surrounded by people, shops and restaurants in order to maintain a social hub, there are an increasing number of buyers seeking properties with more space, both indoors and outdoors, with not so many neighbours. Properties have always been an essential part of everyday life; however, the current world situation means there are not as many of us taking them for granted.
Although the situation moving forward is far from certain, given the worldwide prevalence of Covid-19, a large proportion of economies are predicting a strong bounce back in 2021, so we will keep our fingers crossed that 2020 is just one of those years that happens every so often.
But let’s start drawing this to a close on a positive note! We are currently seeing a pent-up demand for prime location properties here on the Costa Del Sol that shows no signs of slowing down which is maintaining price stability.
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