The Costa del Sol property market is one of Spain's most important foreign buyers. The Costa del Sol has been a favorite of foreigners since the 1960s on the European holiday radar for the first time for second homes and holidays. اوتيل
The Costa del Sol has experienced its share of ups and downs, as have all the property markets. And, like the rest of Spain, the crisis after 2007 hit hard. Covid-19 has also hit hard, but the market of Costa del Sol has one advantage over many others – it often ends in a property cycle before the rest. We expect this upper hand to come into play again in the coming months.
Costa del Sol pre-covid-19 property market
In the light of the impact of COVID-19 so far on the property market of the Costa del Sol, the pre-pandemic image is helpful. The pre-virus situation shut down borders and shut down businesses.
Prices. Prices.
In recent years, house price increases on the Costa del Sol have steadily increased, although prices remain around 30 percent below their peak in 2007. The Tinsa Local Markets Index (IMIE) indicated that property in the province of Malaga grew by 3% to Q1 2020, which was 0.5% higher than Spain in general.
Sales Sales
In February, the Spanish Statistical Institute (INE) reported 2,225 sales on the Costa del Sol, a bit lower than the previous year's 2,537. However, transactions in March (Spain was alarmed and locked up on 14 March) fell by over 31%.
Further developments
By January 2020, the pipeline or under construction between Malaga and Estepona had some 200 new developments. Spanish Development Ministry (Ministrio de Fomento) figures reveal that Málaga had the highest proportion (10.7 per 1,000 properties) of new construction licenses in Spain at the end of 2019.
Trend New Buildings-Malaga Estepona 2020
The average value for apartments for new buildings was €2,494 per square meter, villas costing $3,008 and the most expensive were villas in Casares (€7,005 per square metre), according to a report by Savills-Aguirre Newman. Idealista's web portal lists Benahavis with €3,342 per square meter as the most costly new-built apartments, while Sotogrande's is second with €3,204 per square metre.
The lockdown market on the Costa del Sol
Spain entered one of Europe's most strict lock-downs on 14 March and only slightly relaxed confining measures in early May. During these seven weeks, tourism affected all sectors of the Spanish economy, perhaps the worst. The Costa del Sol has gone from record visitor figures to zero tourists almost overnight.
Duty Civil Guard 19 lockdown on the Costa del Sol
The unprecedented and unknown nature of COVID-19 meant that there was fear and uncertainty in the first stage of COVID-19 lockdown. Given the nosedicity of online holiday searches from mid-March to early April, it was not everyone's mind to buy a home on the Costa del Sol.
Sustained foreign buyers interest
However, when Europe came to overcome the worst virus and the curve started to flatten in new cases and fatalities, confidence came back. Increased online search, with extensive marketing programs including 360 degree virtual tours – estate agents on the Costa del Sol are not used to showcase properties for clients who are not in the area physically. As a result, many agents have seen a significant boost in website traffic and buyers' interest.
The growth in Costa del Sol's online searches and enquiries from mid-April to end of May have shown the region's continued interest by foreign buyers. Even during a pandemic, the climate, lifestyle and connections in the area appear to be significant motivators.
New developments for foreign buyers coast of the sun
Flexible reservations for property
Virtual tours using the best technology succeeded enormously in persuading buyers to buy. Flexibility is important too – many estate agents have for example introduced a system whereby interested purchasers pay a deposit to book the property until they can go to the Costa del Sol. If the property is not at your convenience, the deposit is reimbursable. Developers too have implemented travel and economic restrictions in line with flexible deposits and payment terms.
Sales Sales
Notwithstanding COVID-19 restrictions – estate agents were unable to open their offices until mid-May – sales on the property market in Costa del Sol continued throughout the alarm. In May 2020, INE recorded a total of 1,339 transactions, more than half of the total in the same month a year earlier. Some of these purchases were for 'locked' properties.
Post-locking Costa del Sol property market
As the Costa del Sol and Spain progressively loosen away and the country removes travel restrictions, the immobilization market is gradually adapting to the new situation. Although no one has a crystal ball and is very dependent upon the behavior of COVID-19 and its development (or not) vaccine, we believe the Costa del Sol is characterized by a variety of factors that predict a short and long term recovery.
Recorded in 2019.