Marbella’s luxury property segment stable in uncertain times

Publication: 24 Sep. 2020
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While it is true that the travel restrictions resulting from the Covid-19 crisis have greatly reduced the number of international tourists to the Costa del Sol, the impact on the higher end of the Marbella property market has been pretty much non-existent. In fact, local studies and market reports indicate a flood of new enquiries coming in as the lockdown eased, and by mid-June sales began to rise to above the same level last year.

This is partly explained by a build-up of demand during the ‘dormant’ lockdown months of March, April and May, during which a lot of people remained in contact with Marbella agents and viewed properties using modern walk-through video and rendering technologies. By the time travel was possible again many had made final pre-selections and were keen to come to the Costa del Sol to view the shortlisted properties in person.

High end Marbella property a safe bet
The drivers behind this increase in luxury Marbella property during the summer months are mostly twofold, with many who had been thinking of buying a property on the Costa del Sol now taking decisive steps because they see it as a safe investment in a time of uncertainty. The other reason is lifestyle, with a lot of people being drawn to this region because of the space, climate and proximity to nature it offers.

For this reason, buyers are asking for high quality construction, good amenities, space, gardens, proximity to nature and also to services, as well as an increasing focus on properties that lend themselves to working from home. All of this points to people wanting to spend extended periods of time in Marbella or even relocating to the Costa del Sol permanently, as it is greatly preferred as a lifestyle destination, especially in the event of an extended lockdown.

How prices have reacted
If you wondered why Marbella property prices have not really budged, and in some cases even edged upwards, it is because the scenario described above has led to a good summer season of sales in the higher end of the market. What’s more, not only has the number of transactions in this segment risen, but also the average sales price is significantly up, reflecting the strength of the luxury Marbella market.

In the lower segments, and in cases where vendors are keen to sell, prices have been adjusting downwards enough to create some excellent opportunities – and in times when the stock market remains unappealing, Marbella real estate is almost as solid as investing in gold. Additionally, it is a working asset that can earn income through rentals, and as the overall number of visitors drops from the records of recent years, this will bring a lot of high-end tenants back to Marbella.

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