The question on many people's minds is how the property market has been affected with the COVID-19 pandemic? If you too have been wondering then read on.
To be fair when we first started our lock down we did think that we should say goodbye to sales for a long time, we thought the worst. However, we still made sales while working from home by sending customers video tours and finalising sales from before the pandemic. We also have customers arranging to fly over as soon as travelling becomes easier. This could be because while in lock down it gave people time to reflect and think about what they want from life. Perhaps they had been waiting for everything to fall into place before buying that dream home, then bam, coronavirus, this made people think more about living in the now and not putting off plans any longer.
So as it stands now you will be free to fly to Spain without quarantine from the 1st July. A big sigh of relief perhaps for those of you who wish you had been in Spain for quarantine and have missed out on the sun!
For those who have not yet bought a home let's take a look at what to expect. Now as our area of expertise is Marbella, we will focus on that area.
You should not be thinking that this will be exactly like the big property crash of 2007/2008. The banks are in a stable situation and have not been lending money for mortgages to anyone and everyone. That also means there is not a high number of properties being repossessed. There was a high number of properties for sale and high inventory meant that properties had to be sold at a lower price. The inventory right now has not increased so do not be expecting massive reductions on a huge selection of properties. People in Marbella are generally rich so will have no problem hanging on to their properties until the market gets back to a peak level.
That being said we have a small number of properties that have reduced their prices to attract buyers at this difficult time. Contact us here to find out more about what properties we have to suit your budget.
Another thing to take into consideration is that the last crash came as a big surprise. Since then many have the mindset that they won't be caught out twice and have made sure they save money and make smarter investments should something similar occur.
The main obstacle Marbella and other areas face this year is that of tourism. We rely heavily on tourism and since most of the world had to quarantine there was no travel and no holidays. Many have already and will decide to holiday in their own country this year for the fear of their health and safety. It will take at least a year for tourism to pick up back to normal and unfortunately that is bad news for Marbella and such places that rely on this for business. It will be a case of hold on and wait it out the best you can.
However one thing that remains is that Marbella has the best climate in Europe, people love to come here for the year round sunny weather. For that reason properties in a prime location (good views, close to amenities) will not see much reduction in price. Properties that do not have good views and are in a less desirable location will need to adjust their prices to attract buyers at this difficult time. That being said if the owner has plenty of money in their pocket then they will most likely wait it out and sell when the global economy has picked up again.
So to summarise we are in completely different circumstances to that of 2007. You should not rush to Marbella expecting a high number of repossessed properties and severely reduced prices. However, act fast enough and you may get lucky with some property owners that will be happy to give some sort of discount during this difficult time. Tourism will be down for the whole of this year and will contribute to the loss of some sales even though some have bought with the help of video tours etc.
The main quality of life that people seek in Marbella still exists and will contribute to help keep the Marbella property market alive.
Flights will resume as normal to Spain from the 1st of July and some people are already planning their trip, eager to see something else other than their own 4 walls.
Many people have used this down time to reflect and this will help with sales as they will be desperate to make a change in life. Rather than waiting for the perfect moment they will have realised that life is short and now is the time to act. Could this be you? Let us know if you are ready to find your dream home in Marbella and we could help you make that change in your life.
I hope you liked this post and be sure to keep up to date with our blog for all the latest news. To book an appointment or for more information on our properties contact us now.
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