After the difficult couple of years that we’ve experienced around the world, it was looking doubtful, and quite frankly rather bleak, for the real estate industry on the Costa del Sol in 2022. With the world coming to a halt, tourism stopping dead in its tracks, as well as the cost-of-living crisis slowly tightening its grip on the economy, it was assumed that the real estate sector would experience a crushing blow. And all of that is without mentioning the dreaded C-word!
But the truth of the matter couldn’t be more different! Where our industry was predicted to grind to a halt – instead, it started thriving more than ever. Let’s take a look back at 2022 on the Costa del Sol and see how the market might be moving forward when 2023 arrives.
A different standard of living
Since the pandemic, millions of us have reassessed our priorities in life, craving a life lived in the moment and a desire to experience more of the world around us. The rise in working from home has also allowed for a much greater degree of flexibility in where we choose to live, meaning that many have flocked to the Sunshine Coast for a slice of the good life.
No low season
The Costa del Sol has proven to be an incredibly strong player when it comes to both living and holidaying – experiencing little to no ‘low season’ across the year, therefore allowing local businesses such as shops and restaurants, as well as holiday rentals, to operate all year round without any significant dip in trade. This lack of low season, combined with a mild winter climate, has made the Costa del Sol an incredibly attractive destination to live, work and play.
Heavy investment in key areas
Having recovered from the 2008 property crisis, the demand for property on the Costa del Sol has reached peak levels, and understandably so, considering the level of regeneration and development that key areas on the coast are currently undergoing. Many local authorities are now pushing greener and more sustainable initiatives, such as Fuengirola’s free bus service, and Marbella’s ‘Pet-Friendly City’ plan. Investing in the Costa del Sol is becoming increasingly more attractive.
Lower taxes in Andalucía
Like many countries, each regional government within Spain has the responsibility of applying certain taxes to its residents. The region of Andalucía has enjoyed being one of the most tax-friendly regions in Spain, alongside Madrid – proving exceptionally popular with potential buyers. In other good news, the controversial Wealth Tax was also abolished in Andalucía back in September, bringing with it some much-needed encouragement for both foreigners and Spanish to buy property and settle.
The current world conditions make it rather difficult to predict what might happen for the property market on the Costa del Sol in 2023, but it’s status as a family-favourite destination, as well as the burgeoning opportunities for growth and development, we believe that it’s safe to say that the area will remain strong.
If you’re looking to sell or buy on the Costa del Sol, we’d love to help you with your journey. At Winkworth, we specialised in buying and selling properties along the coast, including Sotogrande, Estepona, Guadalmina, San Pedro de Alcantara, Nueva Andalucia, Puerto Banus and Marbella.
We’re confident that we have the right combination of local knowledge and experience to offer you the best option when it comes to buying or selling on the Costa del Sol. Call us on +34 952 880 941 or +34 600 115 728 or email us at email@example.com to get started today.