With us all under Covid 19 lockdown, is now a good time to consider buying a property on the Costa del Sol?
This Covid 19 has certainly put the real estate market in Marbella into a bit of a tail spin.
But, I have got to say, that the timing to make a purchase has never been better. Now before you close the browser, hear me out!
The world or real estate is full of statistics and facts that can impress or depress even the hardest money wise property owner.
So before I get into the reality of it all, here’s a couple of stats that may prove a useful starting point.
It is very true that those of us who live here on the Costa del Sol, enjoy all the trappings of one the most visited places on our lovely planet.
We have superb weather, easy access from all over the world and an infrastructure to accommodate the millions who visit us every year, many of which will buy the holiday home of their dreams and plan to return year after year.
After all, who wouldn’t want to spend long weekends and family holidays in the balmy mediterranean climate?
Unfortunately, during times such as these, whether it be a global financial recession, or a global health scare, when people suddenly need to tighten the purse strings, it is inevitable the non essential goodies have to go first.
Such luxuries as holiday homes.
The more fortunate among us, those who have the financial resources and the acumen to ride the storms, often find themselves ruling the roost as the market suddenly, albeit temporarily, becomes a buyers market.
Over the past five years, the Costa del Sol has seen hundreds of millions pumped into region through developers building countless brand new housing projects, from cheap and cheerful apartments through to high end private residences and everything in between.
A quick glimpse from the top floor terrace from home will see a scattering of cranes all creeping skywards and all marking the spot where these developers have plonked their shareholders money.
A quick stroll through the towns and along the beaches of the coast will present ‘For Sale’ signs in abundance, with individual owners selling their properties in an attempt to take advantage of the real estate boom.
Only for it to come to a grinding halt…overnight!
Developers have targets to meet to keep their beloved shareholders happy, and the individual need to sell to keep their bank manager happy.
The fact is, that unlike many other regions of Spain, Andalucia is a hotbed for international money.
From touristic families who own a bolt hole in the sun, to complex investments capital who aim to take advantage of the boom, it is a natural state that some of these often ‘sail a bit too close to the wind’ and can easily overextend themselves financially.
Throw a Covid 19 pandemic into the mix and all of a sudden, the market hits the proverbial panic button, prices drop, sellers panic and developers go a ghostly shade of white.
The developers have reacted with different tactics. Some are steadfastly refusing to budge on anything and have simply frozen the prices until things get better.
Once the coast returns to normal (whenever that will be) they will hike the prices up to keep in line with their forecasts.
Some of the more savvy developers (in my opinion they are more savvy) have reduced prices, albeit a fraction, some are offering furniture vouchers (up to €20,000 worth, which is not bad at all) and some are allowing to make reservations with ‘no risk’ deposits.
For any investor with a bit of liquidity, the time to take advantage of this momentary lapse of buying power is right now.
Yes, for the gloomy nay sayers among us, it is true that the people buying now are taking advantage of other people’s misfortune, but that is the way it goes.
It may be the 2020 summer is going to be the quietest this coast has seen in many a year, but it will not last.
As soon as the countries get to grips with virus, and we all adjust our daily lives accordingly, then it will be business as usual and the panic will subside.
The Covid 19 pandemic we find ourselves in will not last forever and when we come staggering out into the sunlight in the not so distant future, some lucky souls will have bagged the deals of the year by simply taking the decision while the rest of us are all hiding under our beds counting our stash of toilet rolls.
If I am honest with you, and it is only a gut feeling, but I truly believe that the boom will be back with vengeance when people suddenly realise being locked down in the warm and sunny climes of southern Spain, might, just might, be better than being at home.
If you want to know what we here at Terrasur Homes consider the best deals in this time of uncertainty, let us know here, and we will happily talk you through the best options.