The Coronavirus -or COVID-19- has left its economic mark on the Costa del Sol. After years of steady growth in the real estate market, there is a perceptible major property price fall on Costa del Sol. In some areas, prices have fallen by up to 20%, while in others, they’ve remained stable.
Real estate sales falling
Figures speak for themselves: real estate sales throughout Spain fell by 34% in the second quarter, and although there has been a marked increase in the third quarter, it is still far from the figures achieved in 2019. According to statistics from EpData, sales were behind by 12% at the end of the month of August.
Foreigners not travelling to Costa del Sol
One of the big reasons for this drop, among other factors, is the fact that very few foreigners were able to travel to Spain from mid-March to late June. The number of properties sold to foreigners fell by 50% in the second quarter. It is worth mentioning that the United Kingdom, Germany, France, Sweden, Belgium, Italy, China and Russia stands for nearly 50% of all sales. The British alone usually stands for approximately 14% of non-domestic sales.
It is no secret that Spain relies very much on tourism. The second wave of coronavirus started in late July, right when the British government imposed a 14-day quarantine to their citizens returning home. As a result, tourism suffered a serious blow and the optimism experienced in June and July quickly vanished like dew to the sun.
Coronavius second wave
Currently, the second COVID-19 wave is raging throughout the world. According to experts, Spain is heading for a sharp recession; as a result, the housing market is expected major property price fall on Costa del Sol of up to 30%. Having said that, certain properties will remain at the current market prices as top quality homes will always find buyers. In other words, do not expect to make a good deal on a penthouse with sea views!
Invest in real estate on Costa del Sol
If you are planning to buy a home on the Costa del Sol, then it may be advisable to buy now. Note that the number of holiday homes in Malaga is declining and an investment in a holiday apartment in Malaga can be a good deal.