If you’re hoping to sell property in Spain right now then there’s good news for you; Whilst early forecasters suggested that property prices would sink considerably as a result of the Coronavirus pandemic, in reality the opposite has happened. Forecasters released predictions that all Spanish property, particularly Spanish coastal property, would drop considerably in value. But actually, property prices in Spain didn’t drop at all, and when analysed, property asking prices in Spain actually increased by 0.5 percent year-on-year, showing that the pandemic didn’t actually have any negative effect.
The Spanish property market is in a very strong and stable position. Here are some of the reasons why this is the case, and why the current strength of the Spanish property market is only set to continue:
The Spanish Property Market is Changing
In property terms, one of the main changes that resulted from the coronavirus pandemic was that people began serving for larger properties, with more outdoor space, and often in more rural areas. Months of coronavirus restrictions in small apartments saw home owners reflecting about the kinds of property then wanted, and the traditional Spanish city life was sadly found lacking. Small apartments and plenty of time spent socialising in cafes and squares simply wasn’t a lifestyle that was compatible with the pandemic.
Looking forward, there is much more interest in properties with space, as well as coast and countryside locations. Homeworking means that locations such as the Costa del Sol are attracting more incomers from the city than ever before.
From the month since the beginning of lockdown (April 2020), property asking prices in coastal regions have increased steadily with the figures rising by between 0.5% and 1,751 €/m2, depending on the location. The regions that have seen the biggest increase are the Balearics (with an increase of 4.4%) followed by Malaga/Costa del Sol (+3.1%) and Alicante/Costa Blanca (+2.6%). By contrast, some coastal regions saw a decline in their average property asking prices. The most significant of these were in Granada/Costa Tropical (-6.5%), Almeria and its costa (-5%), Las Palmas / Canaries (-4.6%), and Girona/Costa Brava (-1.6%).
Why is Property Demand So High in the Costa Del Sol?
There is a clear and stark contrast between the figures in the Costa del Sol and Costa Brava, despite them both being coastal locations. This has led many in the property market to discuss why. One of the main and most obvious reasons for this is because the Costa del Sol tends to attract a more high-end clientele, and this market has been less effected economically by the impact of the current pandemic. Because the Costa Brava tends to offer more affordable properties, and the market demand for these has dropped, the region has suffered more as a result of the crisis.
Another key reason why the Costa del Sol property market is mcuh more attractive than the Costa Brava right now is because it has excellent European transport links, in terms of flights and ease of access. This means that the Costa del Sol isn’t just reliant on the British market, as the Costa Brava is. Swedish, Finish, Dutch, Belgian buyers are all viewing Spanish property on the Costa del Sol as a key investment and they are helping to drive up the demand in the region. This is being further helped by the fact that bank interest rates in these regions are very low, so property offers a much better return on investment.
Homeworking Makes Living in Spain More Attractive
Another fallout from the pandemic, and one that has aided the Spanish property market, is that the rise of homeworking globally means that many people are now free to work from wherever they want. And if you have that kind of freedom, why not work from your home in the sun? With good property links, fast internet connection, and a laidback lifestyle, living and working in Spain (even if only for part of the year) is a very attractive proposition. You can do so without changing your job role, cutting back your hours, or sacrificing your career in any way: it’s a win-win situation!
Are you thinking of moving to Spain? Looking to escape the cold and rainy weather in the UK and make an escape to the sun? Then why not get in touch with our local property experts, who are perfectly placed to help you find the Spanish home of your dreams. We’re excited to help you make your next move your best move!