The Costa del Sol has long been a favouritedestination of property investors from all over the world. What might surpriseyou, however, is how strong a choice it remains in the current climate, evenwhen its apparent familiarity is considered.
If the uncertainty brought by the pandemic overthe past year or so has left you questioning whether now is the right time toinvest in Sotogrande property, we can bring you importantreassurance at BM Sotogrande.
While there’s never been a badtime to purchase property on the Costa del Sol, 2021 might providean especially opportune moment – for quite a few reasons.
How did COVID affectCosta del Sol’s property market?
The start of the COVID-19 crisis in 2020 sawproperty sales on the Costa del Sol initially fall by 22%; by the end of thatyear, however, sales had picked up again.
Although the coronavirus outbreak helped bringabout a drop in prices for resale properties by an average of 5% to 10%,new-build prices stayed consistent, and higher-end properties valued over€800,000 maintained their value.
By the final quarter of 2020, the Costa del Solwas registering the second largest sales per 1,000 inhabitants in Spain.New-build sales also increased by 8% during 2020, which all points to propertyin Sotogrande being as hot a prospect as it has ever been.
How has the Costa delSol property market recovered?
As mobility and travel restrictions began tolift, and of course the success of COVID-19 vaccines, this allowed more foreigninvestors the opportunity to begin investing again in Spanish property.
Due to this, as of February 2021, square metreprices for properties on the Mediterranean coast had increased by an average of2.3% over the past year, according to Tinsa, which helped bump up the value ofproperty in Sotogrande.
In fact, Spanish property is expected to have aninjection of €9,200 million in investment capital in 2021, which is 18% morethan in 2019.
Why has the regionrecovered better than other areas of Spain?
The Costa del Sol housing market has recoveredmuch quicker than other areas of Spain, seemingly largely due to the popularityof its high-end luxury properties.
While the upper-middle segment of the housingmarket suffered during the pandemic, the Costa del Sol is typically a draw forluxury second homes and residential tourism, boasting a larger number ofhigh-end properties for high-end clients.
The Costa del Sol is also a lot less dependent onBritish clients and tourism than other areas of Spain, such as the CostaBlanca. This has led to less steep price fluctuations and allowed the region torecover much better than other comparable areas.
Overall, it is expected that 2021 will be a goodyear for property in Sotogrande and Costa del Sol real estate in general. Afterall, the Costa del Sol is hard to resist for investors across Europe, the US,and beyond.
If you are ready to make an appropriately hotproperty investment in 2021, get in touch with the team at BMSotogrande. We are ready and waiting to provide advice andguidance on your next steps into the Sotogrande property market, to help ensureyou make only the most confident and informed choices.
