Marbella property market report 202001 Jan 2021 | News and Updates
At last we reach the end of this very hard year. 2020 will be left for history, for better and for worse. To remember the loved ones who have not been able to overcome this bad moment, to tell our grandchildren about it. Without a doubt, a year to forget, but also a year to learn from what we have experienced. For this last one, from Benarroch Real Estate, we want to tell you how, from our experience, all this has affected the real estate market of Marbella and the Costa del Sol.
2020 was expected to be a year in which the real estate market in Marbella and the Costa del Sol would follow a trend that would continue until the end of 2019. We are talking about an upward stabilization of the second-hand market, with a continuous demand that was reinforced in the case of the luxury villa market in Marbella as well as in Benahavis and Estepona. Likewise, a stagnation in the sales of newly constructed flats and flats was confirmed, a market that was already slowing down in 2019 with a falling demand and rising prices.
Where we were and where we are going.
This is how we started the year. A year that promised to be stable and without major setbacks, although with a certain fatigue in the demand for flats due to the constant increase in prices over the last few years.
Note on the chart: Upper line dark blue (Monthly search volume); Middle line blue (Weekly search volume); Lower line light blue (Daily search volume).
During the first quarter of the year, there was an upward inertia, typical of these months, which meant that there was little perception of the pandemic at that time.
As can be seen in the graph above, there is a large drop in demand due to the general pandemic situation and in particular the state of alarm declared by the Spanish government between 13 March and 20 June 2020.
As a result of this unprecedented measure, demand plummeted to a low in mid-April, during which time there was a continued increase in the intention to purchase luxury properties in Marbella and the Costa del Sol, with the summer months being very busy thanks in part to the possibility of travelling.
Interest in Marbella has always existed. History itself indicates that it is a stable market, as demonstrated in the past financial crisis of 2008 with sustained falls in prices, as well as sustained demand.
We are not currently facing a financial crisis, although it could have serious economic consequences, but rather a health crisis, which means that interest in Marbella is increasing due to the characteristics of the area.
Marbella meets numerous health criteria that are beneficial to its citizens at this time.
It is a garden city, with open spaces, close to the sea, very little pollution, predominance of urbanism with a low volume of occupation, without crowds of people, where individual movement is predominant and its climate of warm temperatures in winter that facilitates the enjoyment of open spaces.
For all these reasons, Marbella complies with most of the recommended requirements to combat the non-expansion of the virus. If we add to this top-quality health, education and leisure services, they make Marbella a place chosen by many Europeans to live for long periods of time, permanently and even to work from a distance.
The year ends with a bittersweet result. On the one hand, the arrival of the vaccine fills us with hope and encouragement, but unfortunately, for now, it does not yet eliminate the much-feared uncertainty. On the other hand, the real estate market in Marbella is enduring the strong impact of the pandemic, with a slight general fall in sales (due to the lack of mobility), affecting prices slightly, around 10% down on second-hand properties and with the exception of luxury villas, where prices are maintained, as well as a continuous demand, reinforced by the characteristics of Marbella in the face of the pandemic situation we are experiencing, only slowed down by the impossibility for clients to travel.
MARBELLA PROPERTY MARKET REPORT 2020, CONCLUSION
As a conclusion, regarding the Marbella 2020 Property Market report, we will say that we are facing a 2021 where we expect a gradual reactivation of travel and tourism throughout the year, being obviously the first quarter the hardest stretch of all that remains to be passed, but serving the arrival of the vaccine as a reinforcement to the certainty and decrease of uncertainty of a luxury real estate market that will surely overcome 2021 and reach 2022 recovered, with a very solid and sustained demand.
That said, this is a very interesting time for the buyer and not so bad for the seller. The first will see the possibility of acquiring a luxury property prior to a possible increase in demand after the pandemic. The second one, if necessary, will always be able to make his initial investment liquid at reasonable prices, thanks to the solidity of the real estate market in Marbella.
In short, an unexpected and atypical year comes to an end with the firm hope that 2021 will be the beginning of the end of a complicated stage.
We wish you, on behalf of the whole team of Benarroch Real Estate, a new year with a lot of health and full of new projects.
Article by Brice Benarroch Mennessons01 Jan 2021