The beginning of 2020 saw a buoyant property market in Marbella and great optimism for the year ahead. All segments of the market were performing well and most professional real estate agents had a pipeline of prospective clients in the offing. Move2Marbella enjoyed this positive start by closing a deal on the sale of a luxury villa in one of Marbella’s premier gated community with a price tag north of 3M€.
The impact of the quarantine and subsequent travel restrictions on the property market was significant, especially in Marbella that has a much higher percentage of foreign buyers than other areas of Spain. Property purchases in the second quarter declined to 8.000, down from 15.000 in the first quarter (source: National Register of Property Statistics)
So, as the restrictions began to ease, we eagerly returned to work to try and regenerate the business that we were enjoying before the virus hit us. There was much speculation, both amongst clients and industry professionals about the property market and how it has been impacted by the quarantine. Of course, there was the “doom & gloomers” who feared another crash in the economy and subsequent fall in the property market.
Likewise, many investors have liked to use this as a way to leverage a better price on the purchase of an asset. However, although it may be early in the day to venture this opinion, it seems that not only has this not happened but there has actually been an increase in enquiries. This may be down to the fact of enforced confinement for 3 months and are simply the same clients that were originally intending to visit earlier in the year. Whatever, the reason, the actual result has been a gradual return to normality. The dreaded “Crash” has not materialized and prices have not varied from what they were pre-COVID-19.