We will all agree that 2020 was an overall experience not to be repeated, but for the Marbella property market it wasn’t as tough a year as one might have expected. Any situation such as this brings challenges and opportunities, and it’s clear that many online businesses have gained ground while those that depend upon the presence of customers, such as restaurants and hotels, have had a rough time of it.
The property sector might have fallen into the latter category, but in reality it has performed remarkable well in many regions of the world, including the US, Europe and large parts of Asia. Why is this? Well, firstly the greater amount of time spent in their houses has caused many to refocus their priorities away from travel, leisure and consumer products to ‘home sweet home’. This has resulted in the home becoming a greater budget priority and in addition to somewhat of a boom in furniture and home renovation spending, there has also been keen interest in changing and upgrading properties.
This has resulted in surprisingly buoyant real estate markets in the UK, The Netherlands, Germany, the USA and many other countries. Demand for property rentals and sales was such that while prices have in most places not risen they have also not fallen, though there are of course local and regional variations in both directions. An interesting fact is that this not only applies to primary residential areas but also to second home markets in locations such as the Costa del Sol. Here it is particularly the higher segment of the market that is performing well, as people seek to own a property in or move to regions that offer the climate, space, facilities and lifestyle quality of Marbella and surroundings.
Those in the higher segments of the market have the ability to react upon this more quickly, and many are doing so, as people from Northern Europe and North America to Israel and the Middle East are looking for properties with gardens, views and the ability to comfortably work from home.
It is the combination of the above factors that explains why property prices in regions such as Marbella and the Costa del Sol have not dropped despite the Covid-19 situation, reacting as they do to market forces of supply and demand.
There are, however, still individual owners who are offering their Marbella properties for sale at very attractive prices, so contact the Winkworth Spain team for our listing of discounted opportunities.