Luxury Costa del Sol property for sale: prices fall by 2020!

 

The coronavirus pandemic has also affected Spain's luxury property prices and, in the opinion of Barnes, prices fell by up to 20 percent on the Costa del Sol. Nevertheless, the new normal of Spain, the opening of Spanish borders and the arrival of foreigners and expats, according to the company's forecasts, are boosting the Costa del Sol luxury real estate market. buy property in qatar for expats

Barnes explains that the decline will depend on the liquidity needs of owners, so no variation is expected in the super luxury house segment with prices starting at five million euros. The average cost on the Costa del Sol luxury property market is EUR 7,000 per m2, particularly beneficial for potential buyers during the coming months.

As demand for second homes in Spain is changing due to the health situation of foreigners, the behavior of international demand in the coming weeks will be of great significance, that is to say foreigners and expatriates who plan to purchase property in the Costa del Sol. The region's luxury market accounts for 90 per cent of foreign and expat purchasers, primarily from the UK, France, Germany, Belgium, Italy, Switzerland, Russia, and Scandinavia. In 2019, with over 300 sunshine days a year, the Costa del Sol exceeded 13 million tourists, representing 40percent of Andalusia's total tourism, resulting in an economic impact of more than EUR 14 million on Málaga.

"Thanks to its cultural, sports and social attraction, the international buyer will return again to this part of Spain. With the reopening of Malaga Airport, we expect things to pick up again as there are no customers without flights. And when the summer months arrive, activity will be reactivated with strength and property prices gradually recover. In addition, the reputation of Spain and, above all, of the Costa del Sol is not affected by the health crisis due to the excellent crisis management of Andalusia, a region with less confirmed cases per 100 000 people than in the other parts of Sain "That's what Jeremy Lauwers and Marie-Laurence Van de Berg, Barnes office managers partners in Marbella, say.

Engel & Völkers are confident about the potential of the Costa del Sol

The consulting firm Engel & Völkers has also published a pricing report after COVID-19 and reaffirmed its confidence in the Costa del Sol and in Marbella in particular. "One of the markets where demand is high is detected is the Costa del Sol, where price stability prevailed, with the exception of specific cases where the owner wanted to speed up the sale," say the firm. " In eastern and western Marbella, the average cost remains at 3,900 euros/m2. The average in luxury residential areas with luxury villas, like Nueva Andalucía, is up to 4,200 euro/m2. The prices in the Golden Mile rise by up to 5,800 euros/m2, according to the consultant's data.

Engel & Völkers nationality customers in Marbella were traditionally expats with high purchasing power. However, after the pandemic, customers have been split between 75% internationally and 25% nationally and approximately 50% each, with a similar demand from residents of Northern Spain.

The preferred type of housing has hardly changed for buyers in the Costa del Sol. Local customers prefer larger houses with private outdoor spaces and even apartments and penthouses are now looking for villas to purchase. Demand for vacation rentals is also increasing. On the other hand, according to Engel & Völkers, international clients clearly tend to want to live in Marbella if another confinement situation takes place.

The demand for purchasing single-family villas, with a garden and pool at prices of around EUR 3.250/m2 is growing in Malaga, both at national and international levels. Prices have not changed much, but in the most exclusive areas of the city, such as the historic center and the east, slight declines have been seen. The percentage of foreign purchasers in Malaga remains at 65% compared with 35% for domestic purchasers.