It’s very much a case of “Virus? What Virus?” for Marbella’s high end property market.
Luxury properties on the Costa del Sol have proved to be a safe investment in times of uncertainty. A marked decrease in visitors to Andalucia and through the rest of Spain due to the coronavirus pandemic has not been an obstacle for the high-level real estate sector. One of Marbella’s best known real estate agencies, Panorama Properties, recorded a 13% increase in sales in Marbella between June 21 and the end of August, compared to the same period last year.
“Despite the severe decline in foreign visitors this summer, with a reduction of at least 50%, we have experienced an exceptional number of highly motivated buyers who have come to Marbella with the specific intention of acquiring homes in the area,” says Christopher Clover, Panorama’s managing director.
Market activity has shown increased interest and purchases in the area, a trend corroborated by the different real estate companies specialised in these high-end homes. Clover adds that inquiries to his company from potential buyers have increased by 25% since the end of the alarm status in Spain and restrictions on movement on June 21, compared to the same period in 2019. “We have also seen that the average selling price of homes registered by our agency in this short two-month period has increased by 55%,” he adds.
The luxury real estate segment in Marbella – above € 800,000– is made up of at least 80% by foreign investors and buyers, an importnat factor for many years and one that has contributed to the strength of the Marbella area market compared with the domestic market. In addition, Clover adds “the purchase of real estate in our area is being considered as a safe harbour investment” during unsettled times. This is reinforced by the optimistic market forecast for the next few months.
“Lifestyle and real estate investment security are the main motivations of today’s buyers, now more than ever,” Clover stresses, “for these reasons, many of the potential buyers who have been interested for years in buying homes in this area are taking the final steps to buy now.”
The current trend is for homes with larger gardens, proximity to services and nature, homes with “office spaces” or studies to be able to work comfortably from home and quality construction. “We have also seen an increase in sales in the super luxury segment of the market, of homes above €5,000,000, confirming the total attractiveness of Marbella, not only by the prosperous millennials, but also by those who have known Marbella for decades and have decided that now is the right time to buy,” he concludes.